LA Measure ULA Explained: The 'Mansion Tax' That's Different From Everyone Else's

In November 2022, Los Angeles voters passed Measure ULA, colloquially dubbed the "LA Mansion Tax." Designed to fund affordable housing production and homelessness prevention, the tax took effect in April 2023. However, Measure ULA is structurally distinct from almost every other mansion tax in the country.

Current 2025–2026 Thresholds

Unlike New York or New Jersey, whose thresholds are fixed by legislation, LA’s Measure ULA thresholds are adjusted annually for inflation every July 1st by the City of Los Angeles Office of Finance based on the Chained Consumer Price Index (C-CPI-U).

While the tax originally applied to sales starting at $5 million, the current rates (effective July 1, 2025 to June 30, 2026) are:

• 4.0% Tax: Applies to property sales from $5,300,000 to $10,599,999.
• 5.5% Tax: Applies to property sales of $10,600,000 and above.

(Note: For the upcoming July 2026–2027 period, these thresholds will bump to $5.4M and $10.8M, respectively).

Why It's Different from East Coast Taxes

1. Paid by the Seller:
In New York, the buyer customarily pays the Mansion Tax. Under Measure ULA, it is a documentary transfer tax customarily paid by the Seller as a closing cost out of the sale proceeds.

2. Applies to Commercial Real Estate:
Most East Coast mansion taxes specifically target residential real estate. Measure ULA applies broadly to all real property, meaning commercial properties, retail spaces, industrial warehouses, and large apartment buildings are all subject to the tax.

3. The Brutal "Cliff":
Like New York, ULA is a "cliff" tax—once the property crosses the threshold, the tax rate hits the entire value of the transaction. But while NY's cliff starts at a relatively gentle 1%, LA's cliff strikes immediately at 4%. Selling a property for $5,299,000 triggers $0 in ULA taxes. Selling it for $5,300,000 triggers a massive $212,000 tax bill instantly.

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Disclaimer: The information provided in this guide is for educational purposes only and does not constitute legal or tax advice. Please consult with a qualified real estate attorney or tax professional regarding your specific transaction.