Current Measure ULA rates and July 2026 thresholds for Los Angeles real estate sales, with practical considerations for trusts, estates, and apartment owners.
Current Measure ULA Thresholds
Measure ULA applies to qualifying transfers of real property within the City of Los Angeles. For transactions closing after June 30, 2026, the Los Angeles Office of Finance lists the following thresholds:
- Over $5.4 million but under $10.9 million: 4% ULA tax
- $10.9 million or more: 5.5% ULA tax
The ULA tax is charged in addition to the City's base real property transfer tax. The base rate is currently $2.25 per $500, or approximately 0.45%.
Thresholds can change. Owners should confirm the closing-date thresholds with the Los Angeles Office of Finance before relying on a calculation.
Where the Tax Applies
ULA is based on whether the transferred property is within the City of Los Angeles, not simply whether it has a Los Angeles mailing address or is located somewhere in Los Angeles County. A property-specific jurisdiction check should be part of the sale file.
Trust, estate, or probate ownership does not by itself create a ULA exemption. The City publishes specific exemptions and documentation requirements, so fiduciaries should have legal and tax counsel determine whether any exemption applies to the particular transfer.
Simple Calculation Examples
For a qualifying $6 million transfer after June 30, 2026, the 4% ULA component would be $240,000. The City's base transfer tax would be additional.
For a qualifying $12 million transfer, the 5.5% ULA component would be $660,000, again before the base transfer tax and other closing costs.
These examples are arithmetic illustrations only. They do not account for exemptions, transaction structure, allocation questions, or other taxes.
Why ULA Matters in a Sale Analysis
The tax affects estimated net proceeds, pricing discussions, 1031 exchange equity, and the comparison between selling and holding. For a fiduciary sale, the analysis should be documented rather than reduced to a general recommendation to sell or wait.
A useful transaction file should include:
- The property's confirmed jurisdiction
- The threshold in effect on the expected closing date
- A written estimate of the ULA and base transfer taxes
- Any exemption analysis prepared by counsel
- Net-proceeds scenarios at realistic sale prices
- The effect on beneficiary distributions or replacement-property equity
Current Status of the Proposed Repeal
A proposed statewide initiative that could have restricted local real estate transfer taxes became eligible for the November 2026 ballot, but its proponent withdrew it on June 25, 2026 before certification. Property owners should therefore plan under current ULA law rather than assume that measure will repeal the tax.
Sources
- Los Angeles Office of Finance: Real Property Transfer Tax and Measure ULA FAQ
- California Secretary of State: June 25, 2026 initiative withdrawal
This article is for general information and is not legal or tax advice. Confirm current rates and transaction-specific treatment with the City and qualified counsel.
Discussing a Los Angeles Property Sale
For a property-specific valuation and net-proceeds discussion, request a confidential consultation.