Measure ULA 2026: What Los Angeles Sellers Owe at Closing
Measure ULA charges LA sellers 4% or 5.5% on the gross sale price above $5.4M or $10.9M. Here's what you owe and what's changing in 2026.
What does Measure ULA cost Los Angeles home sellers in 2026?
Measure ULA imposes an additional transfer tax on high-value real estate sales within the City of Los Angeles. Sellers pay 4% of the gross sale price for transactions at or above $5,400,000, and 5.5% for transactions at or above $10,900,000. Both thresholds are indexed annually by the Consumer Price Index and apply to the full sale price, not just the amount above the threshold. On a $6.5M home, that is $260,000 due at closing.
By Paul Blair | October 13, 2026
If you are selling a home in Los Angeles priced above $5.4 million, there is a tax on your closing statement that most sellers outside this market have never heard of. It is called Measure ULA, and it is not a small number.
A $6.5M sale in the Hollywood Hills produces a $260,000 ULA bill. A $10M estate in Bel Air produces $400,000. A $15M compound on the Westside produces $825,000. These amounts are owed on the gross sale price the moment escrow closes, before your agent commission, before your mortgage payoff, before capital gains.
Here is what the tax is, how it works, which cities it applies to, and what has changed in 2026.
How Measure ULA Works
Measure ULA was passed by Los Angeles voters in November 2022 and took effect April 1, 2023. Its formal name is the Unified Homelessness and Housing Solutions Tax (the United to House LA initiative). It functions as an additional documentary transfer tax layered on top of the existing county rate.
The structure has two tiers:
- 4% on the gross sale price for any transaction at or above $5,400,000 (City of LA)
- 5.5% on the gross sale price for any transaction at or above $10,900,000 (City of LA)
Both thresholds adjust each year based on the Consumer Price Index. The City of Los Angeles Office of Finance confirmed the current thresholds on September 22, 2026.
One detail that surprises a lot of sellers: the tax is not progressive. Once your sale price crosses the threshold, the entire gross price is taxed at that rate. There is no blended calculation. A home that sells for $5,400,001 owes 4% on the full $5,400,001, not just on the $1 above the line. This is why you will see luxury listings clustered just below $5.4M.
The existing Los Angeles County documentary transfer tax also applies. That base rate is $1.10 per $1,000 of value, which comes out to $5,940 on a $5.4M sale. ULA layers on top of that.
Which Cities Are Subject to ULA
This is where sellers outside the City of Los Angeles frequently get confused, because the answers are not what the addresses suggest.
Subject to ULA (within City of Los Angeles):
- Hollywood Hills
- Bel Air
- Los Feliz
- Silver Lake
- Studio City (partially)
- Brentwood
- Westwood
- Venice
- Mar Vista
- Highland Park
- Hancock Park
- Most of the San Fernando Valley
Exempt (separately incorporated cities):
- Beverly Hills
- Santa Monica
- Culver City
- West Hollywood
- Malibu
- Calabasas
If your home has a Beverly Hills address but actually sits within the City of Los Angeles (this happens more often than you would think), ULA applies. The determining factor is your actual city of incorporation, not your mailing address or ZIP code. Your title company can confirm this before you list.
What You Owe at Different Price Points
The math is straightforward once you understand the structure:
| Sale Price | ULA Rate | ULA Tax Owed |
|---|---|---|
| $5,400,000 | 4% | $216,000 |
| $6,500,000 | 4% | $260,000 |
| $8,000,000 | 4% | $320,000 |
| $10,900,000 | 5.5% | $599,500 |
| $15,000,000 | 5.5% | $825,000 |
| $25,000,000 | 5.5% | $1,375,000 |
These are in addition to your agent commission (typically 2-3% on the listing side), title and escrow fees, and any outstanding mortgage balance. If you are a non-resident seller, FIRPTA withholding may also apply on top of these amounts. There is more on that in our guide to FIRPTA withholding for foreign sellers in Los Angeles.
For sellers who also have capital gains tax exposure, the total tax picture at closing can be significant. Our breakdown of capital gains tax on Los Angeles home sales covers how to estimate that side of the ledger.
What Has Changed in 2026
Two significant developments in 2026 have shaped the conversation around ULA.
The multifamily exemption vote. On June 17, 2026, the Los Angeles City Council voted 9-5 to draft a ballot measure that would exempt newly built multifamily housing from ULA for the first ten years after completion. The exemption is aimed at addressing the argument that ULA has made it harder to finance and sell new rental housing projects in the city. This measure has not yet been put before voters, but it signals that the council is aware of ULA's impact on the broader housing market.
The statewide repeal attempt. The Howard Jarvis Taxpayers Association had collected signatures for a statewide initiative that would have repealed transfer taxes like ULA across California. That initiative was withdrawn from the November 2026 ballot. ULA is not going away in the near term.
The Market Impact
Since ULA took effect in April 2023, approximately $1.03 billion has been collected from 1,435 transactions through December 2025. The split: roughly 60% from single-family residential sales, 24% from commercial, and 13% from multifamily.
The impact on transaction volume at the top of the market has been the subject of research from multiple institutions. UCLA analysis found a 55% reduction in the odds of completing a high-value transaction after ULA took effect. A Harvard Business School study argued that 80% of the revenue ULA raises is effectively offset by reduced property tax revenue from lower transaction volumes and depressed prices.
Whether you view ULA as good housing policy or bad economic policy, the practical reality for a seller is the same: it is a real number on your net proceeds sheet, and it needs to be in your plan before you list.
ULA and Trust Sales
If your Los Angeles property is held in a trust, ULA still applies. The tax attaches to the transfer of beneficial ownership, not just to sales made directly by an individual. If you are selling a property from an estate or revocable living trust, confirm with your escrow officer and attorney whether the specific transaction structure changes your ULA exposure.
For more detail on how California trust sales work at closing, see our guide to trust sales in California.
Planning Considerations for Sellers
A few things worth thinking through before you set your asking price:
Price below the threshold, or price above it with full awareness. Many sellers price to avoid ULA entirely by listing below $5.4M. If your property genuinely supports a price above that level, make sure the net proceeds calculation accounts for the full ULA amount.
Understand the timing. ULA is calculated at the time of closing. If you are in escrow and the annual CPI adjustment changes the threshold before you close, the threshold that applies is the one in effect on the closing date.
Get the closing cost picture before you commit to a price. Your agent and escrow officer should be able to provide a seller's estimated net sheet that includes ULA, documentary transfer tax, commission, and your payoff. Do not wait until you are in escrow to see this number.
Frequently Asked Questions
Does Measure ULA apply to commercial property sales in Los Angeles?
Yes. ULA applies to all real property transfers in the City of Los Angeles, including commercial buildings, multifamily apartment complexes, vacant land, and industrial properties. The 4% and 5.5% thresholds apply regardless of property type.
Is the ULA tax based on the net proceeds from the sale, or the gross sale price?
ULA is calculated on the gross sale price (the total purchase price in the contract), not on your net proceeds after paying off your mortgage or other closing costs. If you sell for $7M and owe $3M on your mortgage, ULA is calculated on the full $7M.
Do homes in Beverly Hills owe Measure ULA?
No. Beverly Hills is a separately incorporated city and is not subject to the City of Los Angeles transfer taxes, including Measure ULA. The same applies to Santa Monica, Culver City, West Hollywood, Malibu, and Calabasas. Properties with a "Beverly Hills" mailing address that are actually within the City of Los Angeles boundary do owe ULA.
Can I negotiate who pays ULA, or is it always the seller's responsibility?
Under the ordinance, ULA is the seller's obligation. Like any closing cost, it can theoretically be addressed in negotiation, but in practice it comes off the seller's proceeds. Buyers generally do not absorb transfer taxes in California.
Will ULA be repealed in 2026 or 2027?
The Howard Jarvis Taxpayers Association withdrew a statewide repeal initiative from the November 2026 ballot. No active repeal measure is currently scheduled. The Los Angeles City Council's 2026 vote focused on a potential exemption for new multifamily construction, not a full repeal.
Know Your Net Before You List
Measure ULA is one of the largest line items on a luxury seller's closing statement. On a $10M property, it is larger than your agent commission. Getting that number right before you negotiate your listing price is not optional.
If you are thinking through the math for your own sale, I am happy to walk you through a full net proceeds estimate before you commit to a price. Start with a home value estimate at greysq.com/home-value or reach out directly.
About Paul Blair
Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 - CA DRE #01792671.