Measure ULA is a City of Los Angeles transfer tax on high-value real estate sales. It sits on top of the City's base transfer tax. It took effect for qualified conveyances on or after April 1, 2023. It has not been repealed.
The "mansion tax" nickname is misleading for investors. Multifamily buildings, commercial properties, and other investment sales inside City boundaries can trigger it when the value clears the threshold. Proposition TE on the November 3, 2026 ballot is a narrow Palisades Fire exemption. It does not repeal ULA citywide.
Current rates after June 30, 2026
The Los Angeles Office of Finance publishes the thresholds and rates. For closings after June 30, 2026, the ULA thresholds are $5,400,000 and $10,900,000. The base City transfer tax remains 0.45% ($2.25 per $500 of value). Thresholds adjust annually based on the Bureau of Labor Statistics Chained Consumer Price Index.
| Value of property conveyed | Base rate | ULA rate | Combined rate |
|---|---|---|---|
| Over $100 through $5,400,000 | 0.45% | 0% | 0.45% |
| Over $5,400,000 and under $10,900,000 | 0.45% | 4% | 4.45% |
| $10,900,000 or more | 0.45% | 5.5% | 5.95% |
ULA applies at 4% when the conveyed value is greater than $5,400,000 and less than $10,900,000. It applies at 5.5% when the value is $10,900,000 or greater. A sale at exactly $5,400,000 does not hit the ULA brackets under the Office of Finance chart.
A hypothetical illustration, not a client result. You sell a City of Los Angeles rental for a gross value of $6,000,000 with no remaining liens at closing. ULA tax is 4% of $6,000,000, or $240,000. The base tax at 0.45% is about $27,000. Combined City transfer tax is about $267,000 before title fees and other closing costs.
Who it hits
ULA reaches documents that convey real property inside the City of Los Angeles when the value clears the threshold. That includes:
- Investment rentals and apartment buildings
- Commercial and mixed-use sales
- Other high-value conveyances inside City limits
It is not limited to luxury single-family homes. County-only property outside the City of Los Angeles is not subject to the City ULA tax. A parcel that sits partly inside City boundaries is taxed in proportion to the value inside the City. If a valuation is not available, the City uses square footage inside City boundaries as a share of the total consideration.
Gross value vs net value
The base tax and the ULA tax do not use the same measure of value.
- Base tax (0.45%). Calculated on net value. Remaining liens and encumbrances at the time of sale are excluded. An assumed loan is left out of the base-tax base.
- ULA tax (4% or 5.5%). Calculated on gross value. Remaining liens and encumbrances, including an assumed loan, are included.
That difference matters on financed deals. A buyer who assumes a large loan can push the gross value over a ULA threshold even when the cash to the seller looks lower. Run both bases before you set a list price or accept an offer.
Exemptions are narrow
Measure ULA includes exemptions under Los Angeles Municipal Code sections 21.9.14 and 21.9.15. Section 21.9.14 covers certain qualified affordable housing organizations, community land trusts, and related structures, administered by the Los Angeles Housing Department. Section 21.9.15 covers certain long-standing 501(c)(3) entities under stated asset and age tests, government entities, constitutionally exempt entities, and transactions already exempt from the base transfer tax. The Office of Finance administers 21.9.15 requests.
A typical investor-to-investor sale of a rental or commercial building does not qualify. Do not treat the exemption list as a planning escape hatch for ordinary investment sales.
Proposition TE on the November 3, 2026 ballot
Proposition TE is a City of Los Angeles ballot measure for the November 3, 2026 election. As described in the City's voter materials and contemporaneous reporting, it would create a one-time exemption from the Measure ULA transfer tax for residential properties damaged or destroyed in the January 2025 Palisades Fire, if the conditions are met.
Reported conditions include ownership on January 7, 2025, a sale by January 6, 2030, and damage verified by the Los Angeles Department of Building and Safety. The measure needs a majority vote. If it passes and the conditions are met, tax already paid may be refundable under the measure's terms.
Prop TE does not repeal Measure ULA for the rest of the City. A statewide repeal effort was withdrawn. Broader City Council reform for the November 2026 ballot was shelved. Plan a non-fire sale as if ULA still applies until the law changes.
Planning notes before you sell
Work the transfer-tax number into the deal math before you list.
- Threshold proximity. A sale near $5.4 million or $10.9 million needs a hard look at gross value, assumed loans, and how close you sit to the next bracket.
- Closing date. The post-June 30, 2026 thresholds and rates apply to closings after that date. Confirm the Office of Finance chart for your closing year.
- City vs county location. Confirm the parcel is inside City of Los Angeles boundaries. A Los Angeles County address is not enough.
- 1031 exchanges. A 1031 can defer federal (and often California) gain on like-kind real property. It does not erase City transfer tax on the conveyance. See our 1031 exchange CPA page.
- Stack with income tax. Transfer tax is separate from federal capital gains, unrecaptured section 1250 (depreciation) tax, and California tax on the gain. For the income-tax side of a sale, see depreciation recapture when you sell investment property.
Not the same as Prop 13 or your annual property tax
Measure ULA is a City transfer tax due when title changes hands. It is not your annual property tax bill. It is also not Proposition 13 reassessment, and it is not a substitute for a property tax appeal. If your assessed value looks wrong after a purchase or on an existing hold, that is a different process. See our property tax appeals page.
Frequently asked questions
Is Measure ULA still in effect in Los Angeles?
Yes. Measure ULA applies to qualified conveyances of real property in the City of Los Angeles on or after April 1, 2023. It has not been repealed citywide. Proposition TE on the November 3, 2026 ballot is a limited Palisades Fire exemption, not a full repeal.
What are the Measure ULA thresholds after June 30, 2026?
For closings after June 30, 2026, the Los Angeles Office of Finance lists thresholds of $5,400,000 and $10,900,000. ULA is 4% when value is greater than $5,400,000 and less than $10,900,000, and 5.5% when value is $10,900,000 or more. Combined with the 0.45% base tax, those rates are 4.45% and 5.95%.
Does Measure ULA apply to apartment and commercial sales?
Yes, when the conveyance is inside the City of Los Angeles and the value clears the threshold. The tax is not limited to luxury single-family homes. Multifamily and commercial investment sales can trigger it.
Does an assumed loan count toward the Measure ULA tax?
Yes for ULA. The ULA tax uses gross value, including remaining liens and assumed loans. The City's base 0.45% transfer tax uses net value and excludes those liens.
Does Proposition TE repeal the LA mansion tax?
No. Prop TE is a one-time ULA exemption path for qualifying Palisades Fire residential properties under stated ownership, sale-deadline, and damage-verification conditions. It does not repeal Measure ULA for other City sales.
Does a 1031 exchange avoid Measure ULA?
No. A 1031 exchange addresses gain recognition for income tax purposes. City transfer tax is a separate tax on the privilege of conveying real property in the City. Plan for it even when you exchange.
Talk it through with us
Bring the draft purchase agreement, the parcel address, any assumed-loan figures, and your target closing date. We will map the City transfer tax against your federal and California sale tax before you lock terms. Book a complimentary consultation.
LaviCPA is a Los Angeles CPA firm for real estate investors. Shawn Lavi, CPA, is the firm's principal. Elias Lavi, CPA, is its founder and co-owner.