Measure ULA (often erroneously called the "mansion tax") imposes an additional documentary transfer tax on real estate sales in the City of Los Angeles that exceed specific monetary thresholds. Unlike a marginal tax, it applies to the entire value of the transaction once the threshold is crossed, creating a significant cliff effect.
Use the tool below to calculate the exact burden. Note that the thresholds are adjusted annually for inflation; the calculator uses the current 2023-2024 thresholds ($5.1M and $10.3M).
Calculate Your ULA Liability
The Mathematics of the ULA Cliff
Because the tax is applied to the gross consideration rather than marginally (only on the amount above the threshold), it creates situations where selling a property for slightly more actually results in less net revenue for the seller.
| Gross Sale Price | ULA Rate | ULA Tax Owed | Net (Pre-Broker/Base Tax) |
|---|---|---|---|
| $5,090,000 | 0% | $0 | $5,090,000 |
| $5,100,000 | 4.0% | $204,000 | $4,896,000 |
In the scenario above, a seller agreeing to $5.1M rather than $5.09M actually nets $194,000 less cash, before even accounting for agent commissions or standard transfer taxes.
Frequently Asked Questions
Are commercial properties exempt?
No. Measure ULA applies to all property types: single-family homes, multi-family apartment buildings, commercial office space, and industrial real estate. The only exemptions are for specific non-profit entities and affordable housing developers meeting strict criteria.
Is it based on gross price or net proceeds?
Gross price. Mortgages and liens are not deducted prior to calculating the tax. If you sell a building for $6M but owe $5.5M to the bank, you still owe a 4% tax on the full $6M ($240,000), leaving you with only $260,000 before other closing costs.