Measure ULA is a City of Los Angeles transfer tax on the full sale price of property that sells above an inflation-adjusted threshold. For sales closing July 1, 2026 through June 30, 2027 it is 4% above $5,400,000 and 5.5% at $10,900,000 or more, on top of the regular city and county transfer taxes. It applies only inside LA City limits, and a 1031 exchange does not avoid it.
What Measure ULA is
Voters approved Measure ULA (the "Homelessness and Housing Solutions Tax," often called the "mansion tax") in November 2022, and it took effect April 1, 2023. Despite the nickname, it applies to apartment buildings, commercial property, land and homes alike. Revenue funds affordable housing and tenant assistance programs.
2026–27 rates and thresholds
| Sale closes | 4% tier | 5.5% tier |
|---|---|---|
| Jul 1, 2026 – Jun 30, 2027 | Over $5,400,000 | $10,900,000 and up |
| Jul 1, 2025 – Jun 30, 2026 | Over $5,300,000 | $10,600,000 and up |
| At launch, Apr 1, 2023 | Over $5,000,000 | $10,000,000 and up |
The thresholds are adjusted each year for inflation (chained CPI), so check the year your sale closes, not the year you list.
The "cliff": it's charged on the whole price
ULA is not marginal. A sale at $5,400,000 owes no ULA; a sale at $5,500,000 owes 4% of $5.5M, or $220,000. At the 5.5% tier, a $10,900,000 sale owes $599,500 versus $435,960 at $10,899,000. That cliff is why pricing right around the thresholds matters so much.
Example (illustrative, sale closing after June 30, 2026):
| Sale price | ULA | City base tax (0.45%) | County tax (0.11%) | Total transfer tax |
|---|---|---|---|---|
| $5,350,000 | $0 | $24,075 | $5,885 | $29,960 |
| $5,600,000 | $224,000 | $25,200 | $6,160 | $255,360 |
| $11,000,000 | $605,000 | $49,500 | $12,100 | $666,600 |
Who pays
The tax is imposed on the document conveying the property. By local custom the seller usually pays, but it is negotiable in the purchase contract.
Where it applies (and where it doesn't)
ULA applies only to property inside the City of Los Angeles — that includes San Fernando Valley neighborhoods like Studio City, Encino, Sherman Oaks and Van Nuys. It does not apply in separate cities such as Burbank, Glendale, Beverly Hills, Santa Monica, Culver City or West Hollywood, or in unincorporated LA County. Confirm the jurisdiction on ZIMAS or the parcel record — a Los Angeles mailing address is not proof of being in LA City.
Exemptions
Exemptions are narrow: government entities, qualified nonprofit and affordable-housing organizations meeting the ordinance's criteria, and certain other limited categories. Ordinary private sellers, trusts and LLCs generally are not exempt. Ask the Office of Finance or your attorney before relying on any exemption.
ULA and 1031 exchanges
A 1031 exchange defers federal (and California) income tax on gain. ULA is a transfer tax on the deed, so an exchange does not reduce or defer it.
Prop TE on the November 3, 2026 ballot
Proposition TE would give a one-time ULA exemption or refund for residential property damaged or destroyed in the January 2025 Palisades Fire, sold between January 7, 2025 and January 6, 2030 by the person who owned it when the fire began. It does not change ULA for other sales.
How sellers plan around ULA
- Price with the cliff in mind. A property worth a little over the threshold may net more at a price just under it. We model both.
- Check timing. Thresholds reset each July 1, so a closing date can change which tier applies.
- Know your buyer pool. Buyers price ULA into offers on properties near the threshold, and some buy outside LA City to avoid it.
- Get the jurisdiction right early. It affects your net sheet, buyer pool and marketing.
Frequently asked questions
What is the Measure ULA tax rate in 2026?
For sales closing July 1, 2026 through June 30, 2027, ULA is 4% of the full price for sales over $5,400,000 and 5.5% for sales of $10,900,000 or more, per the LA Office of Finance.
Is Measure ULA charged on the full sale price?
Yes. Once a sale crosses a threshold, the rate applies to the entire price, not just the amount above the threshold.
Does Measure ULA apply to apartment buildings?
Yes. ULA applies to all real property conveyed inside the City of Los Angeles above the threshold, including apartment buildings, commercial property and land.
Who pays Measure ULA, the buyer or the seller?
By local custom the seller usually pays, but who pays is negotiable in the purchase agreement.
Does ULA apply in Burbank, Glendale, Beverly Hills or West Hollywood?
No. ULA applies only inside City of Los Angeles limits. Separate cities and unincorporated LA County are not subject to it, though they may have their own transfer taxes.
Can a 1031 exchange avoid Measure ULA?
No. A 1031 exchange defers income tax on gain; ULA is a transfer tax on the deed and is still owed.
What is Prop TE?
Prop TE, on the November 3, 2026 LA City ballot, would provide a one-time ULA exemption or refund for residential properties damaged or destroyed in the Palisades Fire and sold by the owner of record within five years of the fire. It does not affect other sales.
Do ULA thresholds change every year?
Yes. They are adjusted for inflation each July 1. They were $5.3M/$10.6M for July 2025–June 2026 and are $5.4M/$10.9M from July 1, 2026.
Talk it through with David
If you own an apartment building in Los Angeles and want to know how this affects your sale price, net proceeds or timing, call David Saghian at (310) 401-1559 or request a free property valuation. The Saghian Group at Lyon Stahl has closed $425M+ in team sales ($325M+ personally) — here is how we count.
- Sell my apartment building in Los Angeles
- Los Angeles multifamily broker
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- Track record: 75 closings totaling $324.8M
- How we count our sales
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This guide is general information, not legal, tax or investment advice. Rules change; confirm your situation with a California real estate attorney, CPA or qualified intermediary before acting. Last reviewed November 3, 2026.