Los Angeles, CA Local Taxes & Fees: Mansion Tax (Measure ULA) (2026)
Key Facts
- Rate ($5M–$10M)
- 4% of the full consideration or value
- Rate ($10M or more)
- 5.5% of the full consideration or value
- Effective date
- April 1, 2023
- Voter approval
- November 8, 2022 (Measure ULA)
- Threshold adjustments
- Annual CPI adjustment (C-CPI-U)
- Base transfer tax (also applies)
- $2.25 per $500 on consideration over $100
Summary
Los Angeles imposes the "Homelessness and Housing Solutions Tax" (Measure ULA) on real property sales at 4% for transactions between $5 million and $10 million, and 5.5% for transactions of $10 million or more, effective April 1, 2023.
SEC. 21.9.2. TAX IMPOSED. (Amended by Initiative Approved by the Voters on 11/8/22, Ord. No. 187,692, Eff. 1/1/23.)
(b) In addition to and separate from any tax imposed under Subsection (a) of this section, starting on April 1, 2023, there is hereby imposed a tax known as the "Homelessness and Housing Solutions Tax" on each deed, instrument or writing by which any lands, tenements, or other realty sold within the City of Los Angeles shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by the person or their direction, when the consideration or value of the interest or property conveyed (including the value of any lien or encumbrance remaining thereon at the time of sale) exceeds:
(1) $5,000,000 but is less than $10,000,000, a tax at the rate of 4% of the consideration or value; or
(2) $10,000,000 or greater, a tax at the rate of 5.5% of the consideration or value.
(c) The Director of Finance for the City of Los Angeles shall adjust the consideration or value thresholds set forth in Subsection (b) of this section adjusted annually based on the Bureau of Labor Statistics Chained Consumer Price Index (C-CPI-U).
Full Breakdown
Approved by voters on November 8, 2022, and codified in LAMC § 21.9.2, the ULA tax is imposed in addition to the existing base real property transfer tax of $2.25 per $500. Unlike the base tax, the ULA tax is calculated on the full consideration including the value of any liens or encumbrances. The thresholds are adjusted annually based on the Bureau of Labor Statistics Chained Consumer Price Index (C-CPI-U). Exemptions exist for qualified affordable housing organizations (non-profits, Community Land Trusts, Limited-Equity Housing Cooperatives), non-profits with under $1 billion in assets acquiring property, and government agencies.
Violations & Fines
Not separately specified; failure to pay follows general tax enforcement procedures under LAMC § 21.16. The County Recorder administers the tax pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code.
Frequently Asked Questions
Does the ULA tax apply to commercial real estate as well as residential?
Are there any exemptions from the ULA tax?
Is the ULA tax on top of the regular LA transfer tax?
Sources & Official References
Other rules in Los Angeles
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