California Mansion Tax 2026: LA's ULA Rates + Every City That Has One
Quick Answer
Does California have a mansion tax? California has no statewide mansion tax. The widely-cited "California mansion tax" is actually Measure ULA — a Los Angeles city-only transfer tax that imposes 4% on sales above ~$5.3M and 5.5% on sales above ~$10.6M (FY2026 thresholds). Seller pays. Several other California cities have their own luxury transfer taxes — San Francisco's tops out at 6% on sales over $25M. Most of California has no mansion-level tax at all.
This guide covers every California city that taxes luxury property transfers, with current 2026 rates, and where the math actually changes deal economics.
Why "California Mansion Tax" Searches Mean LA
When California voters approved a wave of local housing-funding measures in 2022, the City of Los Angeles passed Measure ULA — United to House LA — with 57.8% support. The measure went into effect April 1, 2023, imposing a new transfer tax on high-value property sales within LA city limits to fund affordable housing and homelessness prevention.
The press universally called it "the California mansion tax." Search volume for "california mansion tax" tracks that framing, but the legal reality is narrower: ULA applies only inside the City of Los Angeles. Cross into Beverly Hills, West Hollywood, Culver City, Santa Monica, Pasadena, or unincorporated LA County, and ULA doesn't apply — even though some of those cities (Santa Monica especially) have their own structures.
Measure ULA 2026 Rates (Los Angeles City)
| Period | 4% Threshold | 5.5% Threshold |
|---|---|---|
| July 1, 2025 – June 30, 2026 | $5,300,000 | $10,600,000 |
| July 1, 2026 – June 30, 2027 | $5,400,000 | $10,900,000 |
Thresholds are adjusted annually based on the Chained Consumer Price Index (Bureau of Labor Statistics). Rates of 4% and 5.5% are fixed in the measure itself and do not change with inflation — only the dollar thresholds move.
The Tax Is Applied to the Full Sale Price
Like most US mansion taxes, ULA is a "cliff" tax. A property sold at $5,300,001 pays 4% on the entire $5.3M (~$212,000). A property sold at $5,299,999 pays nothing under ULA. Pricing decisions around the $5.3M and $10.6M threshold lines have dramatic economic consequences for sellers.
What Measure ULA Costs in Real Dollars
ULA Tax by Price Point (LA City, FY2026)
A $5 million LA home (under threshold): $0 ULA.
A $5.5 million LA home: $220,000 (4% on full price).
A $7.5 million LA home: $300,000 (4%).
A $10.5 million LA home: $420,000 (4% — still under second threshold).
A $11 million LA home: $605,000 (5.5% — crossed the second threshold).
A $25 million LA mansion: $1,375,000 in ULA alone.
These costs are on top of California's documentary transfer tax (about $1.10 per $1,000 county-level, plus city add-ons), which is essentially de minimis at luxury price points.
How ULA Has Reshaped the LA Luxury Market
The market response to ULA has been substantial and well-documented. Three patterns dominate:
Pricing just under thresholds. LA's $5M–$5.5M and $10M–$11M bands have become exceptionally dense as listing agents price below the cliff. A $5.4M asking price in 2026 is effectively a $5.65M+ price under the old system; the seller absorbs the ULA into the asking.
Shift to off-market and pocket listings. A meaningful portion of LA's $5M+ inventory has moved out of the MLS into private networks. Sellers and brokers prefer not to broadcast asking prices that flash above the threshold, and some buyers prefer private negotiations to avoid escalating their own bid into a higher tier.
Migration of inventory into adjacent municipalities. Listings in West Hollywood, Beverly Hills, Bel Air-adjacent unincorporated zones, and Santa Monica (despite its own transfer tax) absorbed some buyer interest that might otherwise have looked at Beverly Crest, Hollywood Hills, or Bel Air within LA city limits. Some sellers in border zones have repositioned marketing toward their non-LA-city ZIP codes.
On Luxury Price Drops, we track LA price reductions in real time. As of the latest scrape, LA has 1,400+ active price-drop listings with cuts as steep as -61.9% — some of which reflect sellers repricing to clear ULA-affected inventory. See live LA price drops for current opportunities.
Exemptions to Measure ULA
ULA includes specific exemptions designed to preserve affordable-housing development incentives and exempt certain extraordinary transfers:
- Qualified Affordable Housing Organizations — 501(c)(3) nonprofits with documented affordable housing development or management experience (LAMC Section 21.9.14).
- Community Land Trusts and Limited-Equity Housing Cooperatives with affordable housing track records (LAMC Section 21.9.15).
- Government entity transfers (federal, state, local government as transferee).
- Court-ordered transfers, including bankruptcy and certain dissolution proceedings.
- Transfers between spouses or in connection with divorce may qualify in specific cases.
Several additional exemptions were proposed by Councilmember Nithya Raman in 2025, including:
- A 15-year exemption for newly constructed commercial, multifamily, and mixed-use buildings, tied to issuance of the certificate of occupancy. (Designed to revive luxury condo and apartment development that had stalled under ULA.)
- A one-time exemption for victims of the 2025 Palisades fire selling damaged or rebuilt properties.
These proposals were under City Council consideration as of mid-2026. Specific exemption availability for any individual transaction should be confirmed with a California real estate attorney.
The 2026 Ballot Challenge to ULA
The Howard Jarvis Taxpayers Association (HJTA) qualified a statewide ballot initiative for 2026 that would amend the California constitution to constrain or eliminate local transfer taxes like Measure ULA. The measure is part of HJTA's broader campaign against what it characterizes as the proliferation of local "split-roll" and "mansion-style" taxes.
If the ballot measure passes:
- ULA's 4% and 5.5% rates could be capped at a lower statewide maximum.
- Existing local transfer taxes may face retroactive challenges.
- New local mansion-style taxes would face stricter approval thresholds (potentially requiring two-thirds supermajority).
Separately, multiple lawsuits challenging ULA on California constitutional grounds (Article XIII C, two-thirds requirements for special taxes, and California real-property tax constraints) remain in litigation. ULA collects fully during the ballot fight and litigation, but a 2026 election result or appellate court ruling could change the picture quickly.
Other California Cities with Luxury Transfer Taxes
San Francisco
San Francisco's transfer tax structure is graduated and substantial — it's actually older and steeper than LA's ULA. Current tiers:
| Sale Price | Rate |
|---|---|
| Under $250,000 | 0.50% |
| $250,000 – $999,999 | 0.68% |
| $1,000,000 – $4,999,999 | 0.75% |
| $5,000,000 – $9,999,999 | 2.25% |
| $10,000,000 – $24,999,999 | 5.50% |
| $25,000,000 and above | 6.00% |
Side: typically the seller by contract custom, but legally the buyer or seller can pay. SF's 6% on sales above $25M is the highest single-jurisdiction transfer tax in the US.
Santa Monica
Santa Monica's transfer tax (Measure GS, passed 2022) imposes:
- 0.3% on sales under $5M (the historic base rate).
- 5.6% on sales above $8M.
The 5.6% rate on sales above $8M makes Santa Monica another high-cost market for luxury sellers. Buyers crossing the $8M line should factor this into their negotiation.
Culver City
Culver City's transfer tax (Measure RE, 2020) imposes:
- 0.45% under $1.5M (the historic base rate).
- 1.5% $1.5M–$3M.
- 3.0% $3M–$10M.
- 4.0% above $10M.
Berkeley and Oakland
Both East Bay cities have transfer taxes with luxury surcharges:
- Berkeley: 1.5% base, with surcharges that effectively bring high-value sales above 2%.
- Oakland: Graduated from 1.0% to 2.5% based on price tier.
Beverly Hills, Newport Beach, Malibu
None of these famously luxury California cities has a city-level mansion tax. They impose only the county-level documentary transfer tax (~$0.11 per $100). A $20M Beverly Hills sale pays $22,000 in transfer tax. The same sale in LA city limits would pay $1,100,000 in ULA alone.
This produces a significant cross-municipal arbitrage: a Beverly Hills mansion at $20M and a Beverly Crest (LA city) mansion at $20M have a ~$1 million tax-cost differential, all else equal.
California (LA) vs. NYC vs. New Jersey
Comparing seller-side costs on a $10 million transaction:
| Cost Component | LA City (ULA) | NYC | New Jersey |
|---|---|---|---|
| Mansion / transfer tax | $400,000 (4% ULA, seller) | $325,000 (3.25% mansion, buyer) | $350,000 (3.5%, seller) |
| State/county transfer tax | ~$11,000 (documentary) | ~$165,000 (state + NYC, seller) | ~$121,000 (RTF, seller) |
| Total seller-side burden | ~$411,000 | ~$165,000 | ~$471,000 |
| Total buyer-side burden | $0 | $325,000 | $0 |
The pattern: LA and NJ are now the highest-burden major-market states for luxury sellers in the $5–10M range. Above $10M, LA jumps to 5.5% and overtakes everywhere except SF and Santa Monica.
For deeper coverage of the NYC and NJ side, see our NYC Mansion Tax 2026 guide and NJ Mansion Tax 2026 guide.
Track LA Luxury Price Drops in Real Time
1,400+ active LA price-drop listings, with reductions up to 61.9%. Some reflect sellers repricing to clear ULA-affected inventory.
What Sellers and Buyers Should Do
For sellers near ULA thresholds: The economic cost of crossing $5.3M (or $10.6M for the higher tier) is so dramatic that the right pricing strategy is almost always to stay below it, even if it requires a meaningful reduction from comparable pre-ULA pricing. A $5.7M list with a likely $5.4M clearing price triggers $216,000 in ULA. A $5.3M list with a $5.25M clearing price avoids the tax entirely — netting the seller more in many cases.
For sellers above $10.6M: The 5.5% rate is large enough that ULA cost should be a line item in your initial pricing analysis. Some sellers in this band have moved to private/off-market sales to negotiate seller credits that effectively offset ULA without flashing the issue at the asking-price level.
For buyers: ULA doesn't legally fall on you, but in soft markets sellers price it into their asking. In tighter markets, you'll likely pay the ULA-inflated price. Either way, factor it into your comparative analysis when looking across municipal boundaries.
For 1031 exchanges and entity transfers: Get LA-specific tax counsel. ULA has been aggressive in its application to entity transfers that effectively transfer real property. Naive structures intended to avoid ULA frequently fail and result in audits.
Frequently Asked Questions
Does California have a mansion tax?
California does not have a statewide mansion tax. The widely-discussed "California mansion tax" is actually Measure ULA — a Los Angeles city-only transfer tax that applies to property sales above $5.3 million within Los Angeles city limits. Other California cities (San Francisco, Culver City, Santa Monica, Berkeley, Oakland) have their own transfer taxes with luxury surcharges, but no California-wide mansion tax exists.
What is Measure ULA in Los Angeles?
Measure ULA (United to House LA) is a Los Angeles city transfer tax approved by voters in November 2022 and effective April 1, 2023. It imposes 4% on sales above approximately $5.3M and 5.5% on sales above approximately $10.6M, applied to the entire sales price. The seller pays. Thresholds are inflation-adjusted annually.
What are the Measure ULA thresholds for 2026?
For transactions closing in the fiscal year July 1, 2025 through June 30, 2026, the thresholds are $5,300,000 (4% rate) and $10,600,000 (5.5% rate). For transactions closing on or after July 1, 2026, the inflation-adjusted thresholds rise to $5,400,000 and $10,900,000. Rates remain 4% and 5.5%.
What is the mansion tax on a $10 million Los Angeles home?
A $10 million Los Angeles home sale generates $400,000 in Measure ULA tax (4% of the full $10M). This is paid by the seller at closing, in addition to California's standard documentary transfer tax (~$11,000 on a $10M sale). On an $11 million sale, the tax would jump to $605,000 (5.5%) because the higher tier kicks in above $10.6M.
Does Measure ULA apply to all of Los Angeles County?
No. Measure ULA applies only within the City of Los Angeles boundaries. Sales in unincorporated LA County, Beverly Hills, Santa Monica, Culver City, West Hollywood, Pasadena, Long Beach, and other independent cities within LA County are not subject to ULA. However, several of these cities have their own transfer tax structures — Santa Monica's transfer tax tops out at 6% on sales above $8M.
Who pays the LA mansion tax — buyer or seller?
The seller pays Measure ULA. Parties can negotiate purchase price or seller credits to economically shift the cost, but the legal obligation is on the seller. This differs from New York's mansion tax, which is paid by the buyer.
Are there exemptions to Measure ULA?
Yes. Transfers to qualified affordable housing organizations (501(c)(3) nonprofits with affordable housing experience) and community land trusts are exempt. Transfers required by court order, between spouses, or as part of bankruptcy proceedings may also qualify. Recent proposals include a 15-year exemption for new commercial, multifamily, and mixed-use construction tied to certificate of occupancy issuance, and a one-time exemption for Palisades fire victims.
Is Measure ULA being challenged or repealed?
Yes. The Howard Jarvis Taxpayers Association has qualified a statewide ballot measure for 2026 that would constrain or eliminate Measure ULA along with other local transfer taxes. Legal challenges to ULA on California constitutional grounds have been ongoing since 2023. The tax remains in full effect during litigation and the ballot fight.
What is San Francisco's mansion tax?
San Francisco's transfer tax is graduated and reaches 6% on sales above $25 million. Tiers: 0.5% under $250K; 0.68% from $250K-$1M; 0.75% from $1M-$5M; 2.25% from $5M-$10M; 5.5% from $10M-$25M; and 6% above $25M. The buyer or seller can pay by negotiation, but most contracts assign it to the seller. San Francisco's structure pre-dates LA's Measure ULA by decades.
How does California compare to NYC and NJ for luxury sellers?
On a $10 million sale: LA city seller pays $400,000 (4% ULA); NYC buyer pays $325,000 (3.25% mansion tax); NJ seller pays $350,000 (3.5%). LA is now the highest-burden major US market for luxury transfers in the $5-10M range. Above $10M, LA jumps to 5.5% — making it materially more expensive than NYC's 3.25-3.50% and NJ's flat 3.5%.
How is Measure ULA paid and reported?
The seller pays Measure ULA to the LA City Office of Finance at the time of recording the deed with LA County Recorder. The title company or closing attorney typically handles the mechanics. Required documents include the City of LA Transfer Tax Affidavit and supporting documentation if claiming an exemption. Payment is due at recording.
Can I avoid Measure ULA by selling through an LLC?
Generally no. LA City has authority to apply transfer taxes to legal entity transfers that effectively change control of California real property. Sales structured through controlling-interest LLC transfers, REIT spinouts, or similar mechanisms have been audited and assessed. Use of out-of-state or offshore entities does not avoid the tax if the underlying property is within LA city limits.
Updated: June 2026 · Measure ULA thresholds adjust annually each July 1 based on the Bureau of Labor Statistics Chained CPI. For specific transactions, consult a California real estate attorney.