Measure ULA: what LA sellers above $5 million should know
The City of LA's additional transfer tax on higher-priced sales can be one of the largest line items on a closing statement. Here's the general background.
If you're selling a higher-priced home in the City of Los Angeles, Measure ULA is worth understanding early. It's an additional documentary transfer tax that voters approved in 2022, and it took effect in April 2023.
How it works, in general
For sales closing after June 30, 2026, Measure ULA applies at 4% on sales above $5.4 million and 5.5% on sales of $10.9 million and above, according to the LA Office of Finance. The thresholds adjust every July 1, so always check the current figures with the LA Office of Finance.
The tax is generally calculated on the full sale price, not just the amount above the threshold. That creates a cliff right around each threshold.
Using the thresholds for sales closing after June 30, 2026: a sale at $5,350,000 would fall below the first threshold. A sale at $5,500,000 would be above it, and 4% of $5,500,000 is $220,000. In this simplified illustration, the seller at the higher price would net less than the seller at the lower price. Actual figures depend on the thresholds in effect at closing and the specifics of the transaction.
Where it applies
Measure ULA applies to properties within the City of Los Angeles, which includes areas like Bel Air, Brentwood, Pacific Palisades, the Hollywood Hills, Encino and Sherman Oaks. It does not apply in separate cities such as Beverly Hills, Santa Monica, Malibu, Burbank or Culver City, though those cities have their own transfer tax rules. An address that says "Los Angeles" isn't always in the City of LA, so confirm the jurisdiction for your specific property.
Why it matters for pricing
Because of the cliff, the list price and the negotiation around a home near a threshold take extra care. Who pays transfer taxes is a matter of local custom and negotiation. This is an area where your agent, escrow officer and tax advisor should all be looking at the same numbers before you list.
