Direct answer: For City of Los Angeles real-property conveyances closing after June 30, 2026, the Los Angeles Office of Finance states that Measure ULA applies at 4% when the value conveyed is more than $5.4 million but less than $10.9 million, and at 5.5% when the value is $10.9 million or more. The ULA amount is additional to the City's base transfer tax of $2.25 per $500 or fraction, commonly expressed as 0.45% before rounding.
The two components do not always use the same value. The City says the base tax uses the net value of the property conveyed, excluding liens or encumbrances that remain at sale. Measure ULA uses the gross value, including those liens or encumbrances. That distinction belongs in the seller's net sheet before pricing, marketing, or comparing offers.
This guide uses the official rules available on September 11, 2026. It is an educational pricing and offer-comparison framework, not a determination of a particular transaction's tax.
The current Measure ULA thresholds and rates
The City's current table for transactions closing after June 30, 2026 is:
| Value of property conveyed | ULA rate | Boundary to notice |
|---|---|---|
| More than $100 and no more than $5,400,000 | 0% | Exactly $5,400,000 is not in the 4% band. |
| More than $5,400,000 and less than $10,900,000 | 4% | The lower boundary is strictly greater than $5.4 million. |
| $10,900,000 or more | 5.5% | Exactly $10.9 million is in the 5.5% band. |
The base tax applies separately at $2.25 for each $500 or fractional part. The City rounds a base-tax value that is not divisible by $500 up to the next $500. Measure ULA is percentage-based and does not use that rounding method.
For the current rule and calculator, see the Los Angeles Office of Finance Real Property Transfer Tax and Measure ULA FAQ.
Base tax uses net value; Measure ULA uses gross value
The distinction is easy to miss because the City's table displays a combined percentage when the same value effectively feeds both components. But a transaction with a lien or encumbrance remaining at sale can have different tax bases:
- City base tax: calculated from net value, exclusive of a lien or encumbrance remaining on the property at sale.
- Measure ULA: calculated from gross value, including a lien or encumbrance remaining on the property at sale.
The Office of Finance gives the same treatment to an assumed seller loan: the assumed amount is excluded from the base-tax value and included in the ULA gross value. Sellers should therefore avoid applying one combined percentage to the headline price without first identifying the actual facts and tax bases.
Checked $6 million example with no remaining lien
Hypothetical illustration, not an individual estimate. Assume the conveyance closes after June 30, 2026; the property is within the City of Los Angeles; the value conveyed is $6,000,000; no lien or encumbrance remains at sale; no exemption applies; and the seller is modeling only the City base and ULA components.
- Base City component: $6,000,000 × 0.45% = $27,000.
- Measure ULA component: $6,000,000 × 4% = $240,000.
- Illustrative City components: $27,000 + $240,000 = $267,000.
The $27,000 base figure depends on the explicit assumption that no lien or encumbrance remains. Because $6,000,000 divides evenly by $500, the City's base-tax rounding rule does not change this example. Commissions, escrow, title, credits, prorations, payoffs, withholding, and other transaction items are not included.
How a remaining lien changes the base calculation
Consider a second labeled hypothetical with the same $6,000,000 gross value and $1,000,000 of debt assumed by the buyer or another lien remaining at sale. Using only the City's stated tax-base distinction:
- Base-tax net value: $6,000,000 - $1,000,000 = $5,000,000.
- Base City component: $5,000,000 × 0.45% = $22,500.
- ULA gross value remains $6,000,000.
- Measure ULA component: $6,000,000 × 4% = $240,000.
- Illustrative City components: $22,500 + $240,000 = $262,500.
This is not an instruction to structure a transaction around debt. It shows why the seller's worksheet needs separate lines for gross consideration, liens or encumbrances remaining, the base-tax net value, and the ULA gross value.
Compare threshold-sensitive offers on one net sheet
Measure ULA is not calculated only on the dollars above a threshold. Under the current City table, the applicable ULA percentage is applied to the gross value conveyed once the band is reached. That can materially change the difference between two offers near $5.4 million or $10.9 million.
The following checked comparison assumes a City of Los Angeles closing after June 30, 2026, no exemption, no remaining lien or encumbrance, and no costs other than the two City components:
| Hypothetical offer | Base City component | ULA component | Price less these City components |
|---|---|---|---|
| $5,400,000 | $24,300 | $0 | $5,375,700 |
| $6,000,000 | $27,000 | $240,000 | $5,733,000 |
The headline-price difference is $600,000. After only these modeled City components, the difference is $357,300. That does not make either offer preferable. A real comparison also needs credits, commissions, escrow and title charges, debt payoff, repairs, contingencies, financing evidence, deposit terms, closing timing, and the cost or risk of a failed transaction.
A threshold-sensitive price should never be presented as a shortcut or guaranteed tax result. Instead, ask escrow to calculate each written offer under the current rule and keep the calculation's assumptions attached to the comparison.
Verify the facts that control the calculation
- Jurisdiction. Confirm that the property interest being conveyed is within the City of Los Angeles. A Pacific Palisades mailing address alone is not the calculation.
- Closing date. Use the rule in effect for the actual closing, not the listing date or the date an offer is accepted.
- Gross value conveyed. Identify cash, assumed debt, and other consideration that may be relevant to the value used for ULA.
- Liens or encumbrances remaining. Record them separately because the City's base and ULA calculations treat them differently.
- Ownership and transferee facts. Review the parties, entity structure, and supporting documents before assuming an exemption.
- Offer terms. Refresh the worksheet whenever price, credits, assumed debt, allocation, or closing timing changes.
This gives the seller a usable working estimate while keeping any transaction-specific determination with the responsible escrow, tax, and legal professionals.
Do not treat Proposition TE as a current exemption
As of September 11, 2026, the City Clerk identifies Proposition TE as a property-transfer-tax exemption measure for victims of the January 2025 fire disaster on the November 3, 2026 ballot. The related Council file describes a proposed five-year exemption concerning the Palisades Fire.
That is ballot status, not an effective exemption. A seller should not remove Measure ULA from a current net sheet based only on the proposal. Recheck the official law and its effective terms after the election before relying on any relief.
See the Los Angeles City Clerk's 2026 ballot-measures page and Council File 26-1100-S9 for the current public status.
What exemptions should a seller review?
The Office of Finance FAQ lists defined exemptions based on the transferee or transaction. Examples include qualifying affordable-housing organizations, certain long-established 501(c)(3) entities within the stated asset limit, government entities, and transactions otherwise exempt from the base transfer tax under applicable law.
Those categories are not a blanket seller exemption, and they do not establish that a particular buyer or conveyance qualifies. If an exemption may be relevant, gather the entity, transaction, and determination documents early enough for the appropriate City process and closing review.
Turn the tax worksheet into a pricing and negotiation tool
The point of the worksheet is not to let tax replace market strategy. It is to keep the seller's pricing decision and offer comparison honest.
- Build the initial range from property-specific condition, location, lot, improvements, disclosures, and defensible comparable evidence. The Westside luxury home valuation guide explains why a property-specific analysis matters.
- Model at least three prices: the intended list range, a credible negotiated result, and any relevant ULA boundary.
- Show the base tax and ULA on separate rows, with the value used for each.
- Keep broker compensation separate and negotiable. For that distinct decision, use the guide to the cost of hiring a Westside luxury real estate agent.
- Compare every written offer with the same assumptions, then add financing, deposit, contingency, timing, and execution-risk terms.
- Refresh the net sheet when the deal changes. A stale calculation is not a safe basis for a counteroffer.
Antola Coastal Group can organize the property positioning, comparable evidence, launch plan, and offer comparison while coordinating the transaction-specific figures supplied by escrow and the seller's other advisers.
Frequently asked questions
Does Measure ULA apply at exactly $5.4 million after June 30, 2026?
Under the current Office of Finance wording, the 4% band applies to a value greater than $5.4 million and less than $10.9 million. The City's table places exactly $5.4 million in the 0% ULA band.
What happens at exactly $10.9 million?
The current table applies the 5.5% ULA rate at $10.9 million or more.
Are the base transfer tax and Measure ULA calculated from the same value?
Not always. The City says the base tax uses net value excluding liens or encumbrances remaining at sale, while ULA uses gross value including them.
Is Proposition TE already a Pacific Palisades fire exemption?
No. As of September 11, 2026, official City sources identify it as a measure on the November 3, 2026 ballot. Ballot placement is not an effective exemption.
Who usually pays the City transfer tax?
The Office of Finance describes the tax as imposed on conveyance documents. Payment allocation can be addressed in transaction documents, so the seller's comparison should use the actual contract and escrow calculation rather than a generic assumption.
Build the seller strategy from the current facts
A strong Pacific Palisades seller plan connects four things: a defensible property-specific price, the current City rule, an assumption-labeled net sheet, and a consistent offer-comparison method. That turns Measure ULA from a vague “mansion tax” concern into a number the seller can test alongside the rest of the transaction.
For broader local context, visit the Pacific Palisades community guide.