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LA Measure ULA: What Every Luxury Seller in Los Angeles Must Know
LA ULA mansion tax: seller pays 4% on $5.3M–$10.6M, 5.5% above — $550K on a $10M sale. ULA generated only $288M/year vs $600M–$1B projected as the market responded. Jurisdiction, threshold pricing, and timing are the 3 strategy levers. Own Luxury Homes® 12-Point Agent Integrity Audit™ — LA specialists who build ULA into listing strategy.
Home — Mansion & Transfer Tax Hub — LA Measure ULA: Seller Strategy
LA Measure ULA: What Every Luxury Seller in Los Angeles Must Know Before Listing
5.5%
ULA tax on LA City sales above $10.6M — $550,000 on a $10M property
4%
ULA tax on LA City sales from $5.3M to $10.6M — $212,000 on a $5.3M property
Seller
ULA is paid by the seller at closing — not the buyer
$288M
Average annual ULA revenue vs $600M–$1B projected — the market responded
Measure ULA is the most significant change to the economics of luxury real estate sales in Los Angeles in a generation. Passed by voters in November 2022, it took effect April 1, 2023, and has fundamentally altered how sellers price, time, and structure high-value transactions inside the City of Los Angeles. If you are selling a property in the City of LA above $5.3 million, ULA is not a footnote — it is a material line in your net proceeds calculation.
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How ULA Works: The Exact Numbers
| Sale Price | ULA Rate | ULA Tax Due | Plus Base Transfer Tax | Total Transfer Tax at Close |
|---|---|---|---|---|
| $5,000,000 | Below threshold | $0 | ~$22,500 (city + county) | ~$22,500 |
| $5,400,000 | 4% | $216,000 | ~$24,300 | ~$240,300 |
| $7,500,000 | 4% | $300,000 | ~$33,750 | ~$333,750 |
| $10,000,000 | 4% / 5.5%* | $412,000–$550,000 | ~$45,000 | ~$457,000–$595,000 |
| $15,000,000 | 5.5% | $825,000 | ~$67,500 | ~$892,500 |
| $20,000,000 | 5.5% | $1,100,000 | ~$90,000 | ~$1,190,000 |
*Threshold adjusts mid-year; confirm current figure with your attorney. Base transfer tax = LA City ($2.25/$500) + LA County ($1.10/$1,000). ULA paid by seller in addition to existing transfer taxes.
The Three Seller Decisions ULA Changes
Decision 1: Whether to Sell at All
For a seller holding a $10M LA City property they acquired for $3M, the ULA tax is $550,000 — a number large enough to meaningfully affect whether the net proceeds justify the transaction. Some sellers have held properties rather than trigger the tax, which is part of why ULA generated only $288M annually versus the projected $600M to $1B. The hold-vs-sell calculus now explicitly includes the ULA cost.
Decision 2: Pricing Strategy Around the Threshold
The ULA threshold creates a specific pricing distortion. A property listed at $5.4M triggers $216,000 in ULA. A property that closes at $5.299M pays zero. Sellers of properties that naturally price in the $5M–$5.6M range must decide whether to price below the threshold, price above and absorb the tax, or negotiate a close at just below the trigger. The $10.6M threshold creates the same dynamic at the upper tier.
Decision 3: Jurisdiction — City of LA vs Neighboring Cities
This is the most strategic decision available and the one most sellers learn about too late. ULA applies only within the City of Los Angeles city limits. Properties in Beverly Hills, West Hollywood, Culver City, Santa Monica, Malibu (unincorporated), and the hills of Calabasas pay only the county documentary transfer tax — roughly $1.10 per $1,000, or $11,000 on a $10M sale. The same $10M property inside the City of LA costs the seller $550,000 in ULA on top of that. See: LA vs Beverly Hills: The Jurisdiction Guide.
What Can Be Negotiated With the Buyer
ULA is a seller’s tax — the statute places the obligation on the seller. In practice, sellers have used ULA as a negotiating variable in several ways: pricing the property net of ULA and presenting buyers with an effective “all-in” cost, offering purchase price reductions that reflect the seller’s ULA burden as an implicit concession, and in rare cases structuring transactions to move jurisdiction or use legal structures that reduce the gross value subject to the tax. The legal strategies are complex, require real estate attorneys, and must be undertaken before the transaction — not as a closing-day workaround.
Legal Challenges and the Future of ULA
ULA has faced sustained legal challenge since its passage. The Ninth Circuit has heard arguments, and the LA City Council voted in early 2026 to advance amendments for committee review. Mayor Karen Bass proposed suspending ULA for wildfire-impacted sellers after the January 2025 fires, citing the hardship of taxing owners who lost everything and simply wanted to sell and move on. As of mid-2026, ULA remains in effect and no court has invalidated it — but the landscape is active and sellers with transactions in process should monitor developments with their counsel.
Do Not Assume ULA Will Be Repealed Before Your Close
Multiple repeal efforts have failed. A statewide Taxpayer Protection Act that could have triggered repeal was removed from the ballot by the California Supreme Court in 2024. Plan your transaction as if ULA is permanent. If it is later repealed or amended, the benefit accrues to you. Structuring a transaction around an uncertain repeal is a financial risk.
Ryan Brown, Principal Broker & CEO — Own Luxury Homes®
“The sellers who ask me about ULA the day they sign the listing agreement are the ones who have the fewest options. The sellers who bring it up six months before they want to sell are the ones who can actually do something about it: look at their jurisdiction, test the threshold pricing, consider timing, and get proper legal counsel on any structuring strategy. A $550,000 tax bill is not a surprise if you plan for it.”
Who pays the ULA tax in Los Angeles?
The seller. ULA is imposed on the transferor of real property — the seller pays it at closing in addition to the existing city and county documentary transfer taxes.
Does ULA apply to all of Los Angeles?
No. ULA applies only within the City of Los Angeles city limits. Properties in Beverly Hills, West Hollywood, Culver City, Santa Monica, Malibu (unincorporated), and other neighboring cities are not subject to ULA. See: The Jurisdiction Guide.
Can sellers price below the ULA threshold to avoid the tax?
Yes, if the property genuinely supports a price below $5.3M (current threshold). A property that closes at $5.29M pays zero ULA; one that closes at $5.31M pays 4% on the full amount. This threshold effect creates real pricing strategy decisions for properties in the $5M–$5.5M range.
Own Luxury Homes® — LA luxury specialists who build ULA into your pricing strategy before you list. 12-Point Agent Integrity Audit™. No dual agency. Find your LA specialist now ›
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)