Los Angeles’s “mansion tax,” officially known as Measure ULA, continues to affect high-value property sales in 2026. Designed to fund affordable housing, homelessness prevention, and tenant programs, this tax applies to real estate transfers that meet specific price thresholds.
How the Mansion Tax Works
The tax applies to all types of real property within Los Angeles, including single-family homes, condos, commercial buildings, and vacant land. It is triggered when the total transaction value meets or exceeds the established thresholds. The seller typically pays the tax at the time the deed is recorded.
Current 2026 Tax Thresholds
As of July 1, 2025, the mansion tax thresholds are:
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Sales between $5,300,000 and $10,600,000: 4 percent of the total sales price
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Sales $10,600,000 or more: 5.5 percent of the total sales price
These rates are in addition to the city’s standard 0.45 percent base transfer tax.
Who Is Affected
Despite its nickname, the mansion tax does not only apply to traditional luxury homes. Any property, including commercial or multifamily real estate, that meets the price thresholds is subject to the tax.
Certain transfers may be exempt, such as those to nonprofit organizations, government agencies, community land trusts, and limited equity housing cooperatives. Transfers due to death or gifts may also qualify for exemptions.
Revenue and Controversy
Since its implementation, Measure ULA has generated over $1 billion to fund housing and homelessness programs. Supporters emphasize its role in addressing critical housing needs, while critics argue it can increase costs for sellers and potentially slow activity in the high-end real estate market.
The tax has faced legal challenges, but appeals courts have upheld its constitutionality. It remains a key funding source for Los Angeles housing programs in 2026.
Planning for Your Sale
If you are considering buying or selling property in Palos Verdes or the Beach Cities that meets these thresholds, it is important to factor in the mansion tax when calculating your closing costs. Consulting with an experienced real estate professional or tax advisor can help you plan ahead and avoid surprises.
This article is intended for informational purposes only and does not constitute legal advice. For legal interpretation of disclosure requirements, consult a qualified California real estate attorney.
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