What is Measure ULA and how much does it cost to sell a home in Los Angeles?

Measure ULA is an additional transfer tax imposed on real property sales inside the City of Los Angeles. Effective after June 30, 2026, it applies at 4% on sales above $5,400,000 and 5.5% on sales at or above $10,900,000—calculated on the gross sale price, not your profit. Beverly Hills and West Hollywood are independent municipalities and are not subject to Measure ULA. The tax is paid by the seller through escrow at closing, on top of existing LA County and City transfer taxes.

You're selling a $6 million home in Hancock Park. You've done the math on commissions, escrow fees, and title insurance. You're expecting a healthy net. Then your escrow statement arrives—and there's a line item you didn't plan for: $240,000 in Measure ULA.

That's not a tax on your profit. That's a tax on your sale price. And it's due at closing, regardless of what you paid for the house or how long you've owned it.

Measure ULA is one of the most misunderstood costs in Los Angeles real estate right now—and one of the most important to understand before you list.

WHAT MEASURE ULA ACTUALLY IS

Measure ULA—formally the United to House LA initiative—was passed by Los Angeles voters in November 2022 and went into effect April 1, 2023. It created an additional "special tax" on top of the real property transfer taxes the city already collected, with the stated purpose of funding affordable housing and services for tenants at risk of homelessness.

Here's what makes it different from what most sellers expect:

• It's not a capital gains tax. It doesn't matter what you originally paid for the property or what you're profiting from the sale.
• It's calculated on the gross sale price—including any mortgage being assumed or paid off at closing.
• It applies to all property types—single-family homes, income properties, commercial buildings, and condos alike.
• The seller pays it at closing through the escrow company, deducted from your net proceeds.

This surprises a lot of sellers who come in expecting to think about it only if they have a big profit. Measure ULA doesn't work that way.

THE NUMBERS: WHAT YOU'LL ACTUALLY OWE

Measure ULA's thresholds adjust each year based on the Bureau of Labor Statistics Chained Consumer Price Index. Here's where they stand for transactions closing after June 30, 2026:

Sale Price                          Measure ULA Rate

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Under $5,400,000                    0%

$5,400,000–$10,899,999              4% of gross sale price

$10,900,000 and above               5.5% of gross sale price

Those rates sit on top of two existing transfer taxes already built into every LA closing:

• LA County Documentary Transfer Tax: $1.10 per $1,000 of net consideration (~0.11%)
• LA City Base Transfer Tax: $2.25 per $500 of consideration (0.45%)

Put it together on a real number. A $6 million sale in Hancock Park:

• LA County Documentary Transfer Tax: ~$6,600
• LA City base transfer tax: ~$27,000
• Measure ULA: $240,000
• Total transfer taxes: ~$273,600

Add agent commissions at 5–6% ($300,000–$360,000), plus escrow fees, title insurance, and recording costs, and the total cost to sell a $6 million home inside Los Angeles City limits typically runs 12–15% of the sale price—before you see a dollar of net proceeds.

THE THRESHOLD TRAP

The math creates a sharp pricing decision right around the $5.4 million line—and most sellers don't see it coming.

A home listed at $5,390,000 pays zero Measure ULA. A home at $5,410,000 triggers $216,400 in additional tax. That's not a rounding error—it's a pricing strategy conversation.

This is one of the first things we work through with sellers in Hancock Park, Hollywood Hills, and Fairfax District once a home's value comes in near that threshold. The difference between listing at $5.35 million versus $5.5 million isn't always in your favor once you account for the tax at each price point.

The same dynamic exists at $10.9 million. A $10.85 million sale owes 4% ($434,000 in ULA). A $10.95 million sale owes 5.5% ($602,250). A $100,000 price increase costs you an additional $168,250 in transfer tax. That's a number your net sheet has to absorb—and a conversation your agent needs to have with you before you set your price.

WHERE MEASURE ULA APPLIES—AND WHERE IT DOESN'T

This is where a lot of LA-area sellers get confused, especially when comparing properties across different cities.

Measure ULA applies to properties inside the City of Los Angeles. In our markets, that includes Hancock Park, Hollywood Hills, Fairfax District, Sunset Square, Spaulding Square, and Outpost Estates.

Measure ULA does NOT apply to:

• Beverly Hills — an independent municipality with its own transfer tax structure
• West Hollywood — also an independent city, exempt from LA City taxes
• Santa Monica, Culver City, Glendale, and other independent cities also fall outside LA City limits

That distinction matters when buyers are comparing homes across nearby city lines. A buyer purchasing a $6 million home in Beverly Hills owes zero Measure ULA. The same buyer purchasing a comparable home half a mile away inside LA City limits owes an additional $240,000 at closing. That gap surfaces in negotiation, and it affects how buyers perceive value at any price point above $5.4 million.

As a seller, understanding this dynamic helps you anticipate buyer pushback and prepare your net sheet accordingly before the first offer comes in.

WHAT'S HAPPENING WITH MEASURE ULA IN 2026

The political status of the tax is worth monitoring—but not worth planning around.

In January 2026, the City of Los Angeles announced Measure ULA had surpassed $1 billion in total revenue collected since inception. The city council rejected a proposal to place a revised version on the June 2026 ballot.

The Howard Jarvis Taxpayers Association has been advancing a statewide ballot initiative targeting the November 2026 ballot that could revise or repeal the measure. Until any such measure passes and takes effect, Measure ULA remains in force at current rates and thresholds.

Do not plan a closing around a repeal that hasn't happened. Structure your net sheet around the law as it stands today—and revisit the numbers if the landscape changes.

The thresholds will change again on July 1, 2027. Always verify the current figures with the Los Angeles Office of Finance (https://finance.lacity.gov/faq/measure-ula) before your closing date.

WHAT THIS MEANS BEFORE YOU LIST

Every seller we work with above $4.5 million gets a full net sheet that accounts for all three layers of transfer taxes—county, city base, and Measure ULA—alongside commissions, escrow costs, and any liens or loans being paid off at closing.

That number shapes your pricing strategy more than almost any other factor. Listing at the wrong price near a ULA threshold can cost you far more than a few extra weeks of preparation would have.

Your specific number depends on your home's price, its location inside or outside LA City limits, and any existing financing being paid off. The only way to know your actual net is to run the numbers with someone who knows this market—before you commit to a list price, before you have showings, and before you're emotionally anchored to a number that doesn't account for this tax.

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FREQUENTLY ASKED QUESTIONS

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Does Measure ULA apply in Beverly Hills and West Hollywood?

No. Beverly Hills and West Hollywood are independent municipalities and are not subject to City of Los Angeles taxes, including Measure ULA. Only properties located inside the City of Los Angeles are subject to the tax. This distinction matters significantly when comparing purchase prices across nearby cities.

Who pays Measure ULA — the buyer or the seller?

The seller pays Measure ULA at closing, through the escrow company. It is deducted from the seller's net proceeds, along with the existing LA County and LA City base transfer taxes, commissions, and other closing costs.

Is Measure ULA calculated on my profit or the sale price?

Measure ULA is calculated on the gross sale price—the full value of the transaction, including any mortgage being paid off or assumed. It is not a capital gains tax and does not account for what you originally paid for the property, how long you've owned it, or what you'll net from the sale.

What are the current Measure ULA thresholds in 2026?

Effective for transactions closing after June 30, 2026, the thresholds are $5,400,000 (4% rate) and $10,900,000 (5.5% rate). These amounts adjust annually based on the Bureau of Labor Statistics Chained Consumer Price Index. Always verify current thresholds with the Los Angeles Office of Finance before your closing date.

Can a 1031 exchange eliminate Measure ULA?

No. A 1031 exchange defers capital gains tax on investment property but does not eliminate transfer taxes, including Measure ULA. The tax is due on the transfer itself regardless of how you deploy the proceeds. Strategies to minimize Measure ULA exposure require legal counsel specific to your situation.

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Measure ULA is the single largest line item most of our clients didn't plan for. On a $6 million sale in Hancock Park, it costs more than the commission on one side of the transaction. Getting clear on your number early—before you set your price, before you have showings—is one of the most practical things you can do as a seller in this market.

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About Alexis Ramos & Luke Abbott

Alexis Ramos and Luke Abbott are the founders of Ramos & Abbott Homes, a luxury real estate team with Sotheby's International Realty in Beverly Hills. Together they specialize in architectural and historic homes, new construction, and income properties across West Hollywood, Hancock Park, Hollywood Hills, Beverly Hills, Fairfax District, Sunset Square, and Spaulding Square.