Los Angeles Measure ULA (Mansion Tax) Update for 2026: New Tax Thresholds Now in Effect
If you're planning to buy or sell commercial real estate, an apartment building, a multifamily property, or a luxury home in Los Angeles, it's important to understand the latest changes to Measure ULA, commonly known as the Los Angeles Mansion Tax.
Effective for real estate transactions closing after June 30, 2026, the City of Los Angeles has increased the Measure ULA tax thresholds to account for inflation.
New Measure ULA Tax Rates (Effective July 1, 2026)
The updated tax rates are based on the property's total sale price:
- $5,400,000 – $10,899,999: 4% Measure ULA tax
- $10,900,000 and above: 5.5% Measure ULA tax
These thresholds have increased from the previous levels of $5.3 million and $10.6 million, helping reduce the impact of inflation while maintaining the Measure ULA tax structure.
What Is Measure ULA?
Measure ULA is a special transfer tax imposed on qualifying property sales within the City of Los Angeles. The tax applies to both residential and commercial real estate, including:
- Apartment buildings
- Multifamily properties
- Office buildings
- Retail centers
- Industrial properties
- Luxury residential homes
- Mixed-use developments
- Vacant land
The Measure ULA tax is calculated using the entire purchase price of the property—not just the amount above the applicable threshold.
Is the Mansion Tax in Addition to Other Transfer Taxes?
Yes. Measure ULA is charged in addition to the standard City of Los Angeles and Los Angeles County documentary transfer taxes that are typically paid at closing.
Buyers and sellers should factor these additional costs into purchase negotiations and closing cost estimates.
Planning Ahead Can Save Thousands
For owners considering the sale of an apartment building or commercial property, understanding the updated Measure ULA thresholds is an important part of maximizing net proceeds.
A knowledgeable commercial real estate broker can help evaluate pricing strategies, estimate closing costs, and determine how the Measure ULA tax may affect your transaction.
If you're thinking about selling an apartment building or commercial property anywhere in Los Angeles, I'm happy to provide a confidential property valuation and discuss current market conditions with no obligation.