The New Measure ULA ("Mansion Tax") Numbers

This publication-ready blog post on the updated 2026–2027 Measure ULA ("Mansion Tax") thresholds is designed to match the tone and structure of the previous articles.

Article 6: The New Measure ULA ("Mansion Tax") Numbers

Headline: The Measure ULA Cliff Just Moved: What LA’s New $5.4M & $10.9M "Mansion Tax" Thresholds Mean for Sellers and Buyers

When Los Angeles voters passed Measure ULA—widely known as the "Mansion Tax"—it permanently altered how luxury homes, apartment buildings, and commercial properties are priced and negotiated within the City of Los Angeles.

Because Measure ULA is tied to the Consumer Price Index (Chained CPI), the price thresholds that trigger the tax adjust annually every July 1. However, unlike income tax brackets, the City of Los Angeles doesn't send out a postcard when the numbers move—and with legislative reform efforts stalled and statewide repeal initiatives pulled from the November 2026 ballot, Measure ULA is officially here to stay.

Whether you are selling a luxury estate in Encino or Sherman Oaks, trading a multifamily building, or buying a Westside compound, here are the new 2026–2027 Measure ULA numbers and how to price around the tax cliff.

The New 2026–2027 Measure ULA Thresholds

For any real estate transaction within the City of Los Angeles that closes and records on or after July 1, 2026, the updated thresholds are:

• Tier 1 (4% ULA Tax): Applies to property sales over $5,400,000 up to $10,900,000 (up from last year’s $5,300,000 threshold).

• Tier 2 (5.5% ULA Tax): Applies to property sales of $10,900,000 or greater (up from last year’s $10,600,000 threshold).

Remember that Measure ULA is additive. It stacks directly on top of the existing City of LA base transfer tax (0.45%) and LA County documentary transfer tax (0.11%). That brings the total combined transfer tax rate to 4.56% in Tier 1 and 6.06% in Tier 2.

The "Cliff Effect": Why $1 Costs You $216,000

The most brutal feature of Measure ULA is that it is not a marginal tax. You do not pay 4% solely on the dollars above $5.4 million. The moment your gross sale price crosses the threshold by a single dollar, the 4% or 5.5% surcharge applies to the entire gross purchase price from dollar one.

Furthermore, because Measure ULA is a documentary transfer tax rather than a capital gains tax:

• It ignores your profit or loss: Even if you bought a property for $5.3 million, spent $300,000 renovating it, and sell it for $5.5 million at an economic loss, you still owe $220,000 in ULA transfer taxes at closing.

• It ignores your mortgage: The tax is calculated on the gross sale price on the closing statement, regardless of how much debt is being paid off.

• A 1031 Exchange will not save you: Investors trading an apartment building or commercial asset cannot defer Measure ULA through a 1031 exchange. The tax is collected directly out of escrow the day the deed records.

3 Strategic Takeaways for the 2026–2027 Market

1. Watch Out for the "$5.4M to $5.65M Dead Zone"

If your home or investment property comps out near the lower threshold, you have to run a strict net-sheet analysis before picking a list price. A seller who closes at exactly $5,400,000 pays $0 in ULA tax. To net the exact same amount of money after crossing the threshold, that seller has to achieve a sale price of roughly $5,625,000 just to pay off the $225,000 ULA tax bill. Listing a home at $5,500,000 actually puts less money in your pocket than selling at $5,400,000.

2. The Upper-Tier Relief Window ($10.6M to $10.89M)

For ultra-luxury and commercial sellers, the July 2026 adjustment created a $300,000 window of relief. Properties selling between $10,600,001 and $10,899,999 used to be hit with the 5.5% tax rate. Under the new schedule, those sales drop back down into the 4% tier. On a $10.85 million closing, that 1.5% rate drop saves the seller $162,750 at the closing table.

3. Verify Your Exact Municipal Boundary

Measure ULA only applies to parcels located within the City of Los Angeles—which includes all of the San Fernando Valley (Encino, Sherman Oaks, Studio City, Northridge, Woodland Hills), Brentwood, Bel Air, Pacific Palisades, Hollywood, and Venice. It does not apply to independent cities with their own tax codes like Burbank, Glendale, Pasadena, Beverly Hills, Calabasas, or unincorporated LA County pockets. (Note: Santa Monica and Culver City have their own separate tiered transfer tax structures.)

Planning to sell or acquire a high-value home or multi-unit property in Los Angeles? Don't wait until you are in escrow to calculate the tax impact. Reach out to our team for a custom Measure ULA Net-Proceeds Analysis so we can position your pricing and negotiation strategy on the right side of the tax cliff.