The LA "Mansion Tax" (Measure ULA) in 2026: What Sellers Need to Know

No single rule has reshaped LA's luxury market like Measure ULA, the so-called "mansion tax." If you own a high-value home in the City of Los Angeles — or are deciding whether to sell one — understanding exactly how this tax works can be worth six or seven figures. Here is the 2026 state of play.

What Measure ULA Is

Measure ULA is an additional city transfer tax on high-value property sales in the City of Los Angeles only. It stacks on top of the regular county ($1.10 per $1,000) and city ($4.50 per $1,000) transfer taxes, and it is paid by the seller at closing.

The 2026 Thresholds

• Through June 30, 2026: 4% on sales from $5.3M to just under $10.6M; 5.5% at $10.6M and above.
• From July 1, 2026: thresholds adjust for inflation to $5.4M and $10.9M — 4% between them, 5.5% above.

The thresholds re-adjust every July based on CPI, so timing a sale near mid-year can genuinely matter.

The Cliff: The Single Most Important Thing to Understand

ULA applies to the entire gross sale price, not just the amount above the threshold. Sell at $5,399,000 and owe nothing under ULA; sell at $5,410,000 and owe 4% of the whole price — roughly $216,400. That eleven-thousand-dollar price difference costs you more than $200,000.

This is why sophisticated sellers near the threshold now price at, say, $5.35M rather than "testing" $5.6M — and why buyers in this band negotiate hard knowing the seller's cliff math. Ask your agent to model your net at multiple price points before you ever set an asking price.

What It Applies To (More Than Mansions)

Despite the nickname, ULA hits every property type above the threshold in the City of LA: apartment buildings, retail, industrial, development land — not just homes. It also applies regardless of profit; a seller with thin equity still owes the full percentage on gross price.

Where It Does NOT Apply

ULA is city-specific. Beverly Hills, Calabasas, Hidden Hills, Burbank, Glendale, unincorporated county — all outside it. Note that parts of "the Valley" are City of LA (Encino, Sherman Oaks, Studio City, Woodland Hills) while neighbors like Calabasas are not. Two similar estates three miles apart can face wildly different tax outcomes — a real factor in where luxury buyers choose to buy, since today's purchase is tomorrow's sale.

Legal Status: Still Being Fought

Court and ballot challenges to ULA have continued since its passage, and a statewide fight over such taxes remains active in 2026. So far the tax remains in effect and escrows must plan around it. If you are betting your sale timing on ULA disappearing, understand you are making a speculative bet — talk to your tax advisor about the current litigation posture before you rely on it.

Strategies Sellers Are Actually Using

• Price-to-net modeling: choose the asking price by after-tax proceeds, not gross.
• Timing around July 1: when thresholds rise, a sale that closes after adjustment may clear the cliff — worth modeling for deals near the line.
• Considering leases or partial-interest structures: complex, situational, and strictly a conversation for your tax attorney — but they exist.
• Sharpening everything else: when the tax is unavoidable, the offset is maximizing price through preparation, marketing, and negotiation — the controllables.

Selling Above $5M in LA?

I model ULA scenarios for luxury sellers across Encino, Bel-Air, and the Boulevard corridor regularly — gross vs. net at multiple price points, timing options, and what comparable ULA-band sales actually achieved. Start with a confidential valuation or book a private consultation. For the full picture of transaction costs, see our LA closing costs guide.

This article is general information, not tax or legal advice. Verify current thresholds with the LA Office of Finance and consult your tax professional.