For City of Los Angeles sales closing after June 30, 2026, Measure ULA adds a 4% tax on sales above $5,400,000 and below $10,900,000, and 5.5% on sales of $10,900,000 or more. The rate applies to the entire price, not just the amount over the threshold, and it is charged on top of the regular county and city transfer taxes.
These figures come from the City of Los Angeles Office of Finance and the LA County Registrar-Recorder, both of which list the new thresholds as effective July 1, 2026. If you priced a listing last spring using the old numbers, it is worth rechecking now.
What changed on July 1, 2026?
The thresholds moved up. Here is how the last three fiscal years compare, per the LA County Registrar-Recorder:
July 1, 2024: 4% above $5,150,000, 5.5% at $10,300,000 and up
July 1, 2025: 4% above $5,300,000, 5.5% at $10,600,000 and up
July 1, 2026: 4% above $5,400,000, 5.5% at $10,900,000 and up
The Office of Finance says the thresholds are adjusted every year based on the Bureau of Labor Statistics Chained Consumer Price Index. The new figures have taken effect on July 1 each year, so any sale that might close near a fiscal year change deserves a second look at the date.
How is the tax calculated?
ULA is a percentage of the total value, not a marginal tax. A sale at $5,400,000 pays no ULA. A sale one dollar higher pays 4% of the whole price.
Here is a simple example for a $6,000,000 sale inside the City of Los Angeles, with no loans assumed by the buyer:
LA County documentary transfer tax at $1.10 per $1,000: $6,600
City of Los Angeles base tax at $4.50 per $1,000: $27,000
Measure ULA at 4%: $240,000
Total transfer taxes: $273,600
One detail matters for some files. The Office of Finance FAQ says ULA is figured on the gross value, including liens or encumbrances, while the base city tax is figured on net value. If a buyer is taking title subject to an existing loan, flag it for us early so the numbers on the estimated closing statement are right.
Where is the price cliff?
Because the tax applies to the full price, a higher price can leave a seller with less. Counting the county tax, the base city tax and ULA, a seller at $5,400,000 nets about the same as a seller at roughly $5,626,000. Anywhere in between, the seller nets less than at $5,400,000. The same thing happens at the top tier, where the break-even sits around $11,074,000 against a price just under $10,900,000.
That is why counters near the line deserve a calculator, not a guess. We will cover the cliff in more detail in a later post. For now, the rule I give agents is simple: if an offer lands between $5,400,001 and about $5,626,000, run the seller's net both ways before anyone signs.
Does ULA apply to my listing?
ULA applies only to property inside the City of Los Angeles. A Los Angeles mailing address does not settle it, because several separate cities and unincorporated areas share Los Angeles addresses. Check the property tax bill or the City's own lookup tools before you price the listing.
Some buyers and transfers are exempt. The Office of Finance lists exemptions for certain qualified nonprofits, community land trusts and limited equity housing cooperatives, government entities, and transfers that are already exempt from the base city tax. The Office of Finance handles applications at finance.ula@lacity.org, and an approval letter is valid for one year.
Who pays the tax is set by the purchase contract. The ordinance places the tax on the deed itself, and the County notes that calculating the tax is the job of the document preparer, so your escrow officer will show it on the closing statement according to the parties' agreement.
What is on the November 3, 2026 ballot?
City of Los Angeles voters will decide Proposition TE on November 3, 2026. If it passes, it would create a one-time ULA exemption for residential property that was damaged or destroyed in the Palisades Fire and is sold within five years of the date of the fire, with refunds possible for ULA already paid. According to the City Clerk's voter pamphlet, the owner would need to have owned the property on January 7, 2025, and the Department of Building and Safety would verify the damage.
Until the result is certified and the City publishes its procedures, we treat Palisades sales under the current rules. If you have a Palisades listing in escrow or coming soon, call me and we will plan around the certified result.
For background on how escrow fits around these taxes, see our post on the steps of escrow in California. For how licensed and exempt escrow holders differ, see licensed vs. exempt escrow.
Our free 2026-27 LA Transfer Tax and Measure ULA Cheat Sheet has every Los Angeles County and city transfer tax rate for 2026-27, worked examples and the price-cliff math. Download the PDF there and keep it in your files.
Questions agents ask
Does ULA apply to condos and commercial property?
The Office of Finance says the tax is imposed on all documents that convey real property within the City of Los Angeles above the thresholds. Its FAQ does not carve out property types, so check a large condo, multifamily or commercial sale the same way.
My escrow opened in June 2026 but closes in August. Which thresholds apply?
The Office of Finance frames the new figures by when the sale closes, so a sale closing after June 30, 2026 uses $5,400,000 and $10,900,000. Confirm with the Office of Finance if your file has unusual timing.
Can we split the price between the house and personal property to stay under the line?
That is a question for your client's attorney or CPA, not for escrow. Escrow reports what the documents and the contract say.
Opening an escrow? Send Iris the fully executed contract at iris@calwestescrow.com or call (323) 300-6122.
This post is general information about California real estate transactions as of October 2026. It is not legal or tax advice, and laws and figures change. Talk with your attorney, CPA or real estate broker about your situation.
