Measure ULA is a City of Los Angeles transfer tax on high-value property sales. For an apartment building seller it can be one of the largest costs of the sale, so it is worth understanding before you set a price.
Rates and thresholds
| Sale price (closing after June 30, 2026) | ULA tax |
|---|---|
| Up to $5,400,000 | None |
| $5,400,000 to $10,900,000 | 4% of the full price |
| Over $10,900,000 | 5.5% of the full price |
The tax applies to the entire price, not just the amount over the threshold. A sale at $5.45 million owes about $218,000, while a sale at $5.39 million owes none. Thresholds adjust every July with inflation; they were $5.3 million and $10.6 million from July 2025 to June 2026.
ULA is on top of the standard county documentary transfer tax and the regular City of LA transfer tax. In LA it is customarily paid by the seller, but it is negotiable.
Where it applies
Only property inside the City of Los Angeles, including the San Fernando Valley neighborhoods, Hollywood, Koreatown, the Westside neighborhoods, Venice, San Pedro and Wilmington. It does not apply in separate cities such as Santa Monica, Culver City, Beverly Hills, West Hollywood, Glendale, Burbank, Pasadena, Long Beach or Torrance. Some of those cities have their own transfer taxes (Santa Monica and Culver City, for example).
How sellers plan around it
- Price relative to the threshold. Near $5.4 million, a slightly lower price can net more. We model net proceeds on both sides of each threshold.
- Separate legal parcels. Two buildings on separate parcels sold separately may each fall under a threshold. This needs careful legal and tax advice.
- Timing. Thresholds rise each July, which can matter for a sale near a threshold.
- 1031 exchange. ULA is a cost of sale, not an income tax. A 1031 exchange defers capital gains tax but does not avoid ULA.
2026 status
A proposal to exempt new multifamily buildings for 10 years was shelved by the City Council on July 1, 2026, so it will not be on the November 2026 ballot. ULA remains in effect for existing apartment buildings.
General information, not tax or legal advice. Confirm with your CPA, attorney and escrow officer.
Common questions
What are the Measure ULA thresholds in 2026?
For sales closing after June 30, 2026: 4% on sales over $5.4 million and 5.5% on sales over $10.9 million, applied to the full price.
Does Measure ULA apply in Santa Monica or Glendale?
No. ULA applies only inside the City of Los Angeles.
Sources
- City of LA Office of Finance: Measure ULA FAQ
- Hanson Bridgett: ULA ordinance updates
- Bisnow: Council kills ballot measure for ULA multifamily exemption
General information for Los Angeles County owners, not legal or tax advice. Laws and figures change; confirm with the agency, your attorney or your CPA before acting.