Los Angeles Real Estate Update: New Measure ULA Transfer Tax Rates Effective July 1, 2025
Big changes are coming to Los Angeles real estate. If you're buying or selling high-value property in the City of Los Angeles, you’ll want to pay close attention to Measure ULA—commonly referred to as the “Mansion Tax.” Starting July 1, 2025, new transfer tax thresholds and rates will go into effect, impacting both residential and commercial transactions within city limits.
What Is Measure ULA?
Measure ULA, passed by voters in 2022 and enacted in April 2023, was designed to raise funds for affordable housing and homelessness prevention. The measure introduced a significant hike in transfer taxes on higher-priced properties sold in Los Angeles.
What’s Changing in July 2025?
Effective July 1, 2025, the thresholds for the ULA tax are increasing:
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Transactions under $5.3 million will be taxed at $4.50 per $1,000 of the sale price.
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Transactions between $5.3 million and $10.6 million will face a 4% transfer tax.
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Transactions at or above $10.6 million will be subject to a 5.5% transfer tax.
These rates are in addition to:
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The existing 0.45% city base transfer tax, and
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The County of Los Angeles’ documentary transfer tax of $1.10 per $1,000.
Are There Any Exemptions?
Yes. Certain nonprofit and affordable housing organizations may qualify for an exemption—provided they meet experience requirements set by the Los Angeles Housing Department. Public agencies and some other mission-based housing providers may also be exempt, depending on the nature of the transaction.
Why It Matters
Measure ULA isn’t just a line item on a closing statement—it can significantly impact deal structures, net proceeds, and underwriting assumptions. For example, a $12 million sale could now carry over $1.1 million in transfer tax costs, affecting both sellers' bottom lines and buyers’ budgets.
Where Does the Money Go?
The revenue collected through Measure ULA will go to the newly created House LA Fund, earmarked for affordable housing initiatives and tenant support programs. An oversight committee will help guide how funds are allocated, ensuring accountability and alignment with community needs.
The Bottom Line
Whether you’re a developer, investor, or homeowner in Los Angeles, understanding how Measure ULA impacts your transaction is critical. With the July 2025 rate changes approaching, now is the time to review your strategies and consult with professionals who understand the evolving tax landscape.
If you’re planning to buy or sell in LA, be sure to run the numbers carefully—and plan ahead.
