SERIES: LEGAL & REGULATORY INSIGHTS 

Practical explanations of California real estate laws and policy changes that may affect South Bay buyers, sellers, investors, and property owners.

If you've followed real estate news over the past few years, you've likely heard of Measure ULA, sometimes referred to as the "Mansion Tax." While the nickname has generated plenty of discussion, the law itself is often misunderstood.

Beginning July 1, 2026, the City of Los Angeles adjusted the value thresholds that determine when the Measure ULA transfer tax applies. Although the tax rates themselves have not changed, the thresholds are indexed annually for inflation. That means some transactions that would have been subject to the tax in previous years may no longer qualify, while higher-value sales continue to be affected.

For South Bay homeowners, understanding these updates can be helpful, particularly if you own property within the City of Los Angeles or are considering buying or selling there.

Whether you're selling a luxury home, an investment property, or simply staying informed about California real estate, understanding how Measure ULA works can help you make informed decisions before a transaction begins.

What Is Measure ULA?

Measure ULA (United to House LA) was approved by Los Angeles voters in 2022 and took effect in April 2023. The measure established an additional real property transfer tax on qualifying property sales within the City of Los Angeles. Revenue generated by the tax is intended to fund affordable housing initiatives and programs addressing homelessness.

It's important to note that this tax is in addition to the existing City and County documentary transfer taxes.

What Changed on July 1, 2026?

The tax rates remain the same, but the dollar thresholds increased to account for inflation.

Effective July 1, 2026:

• Sales below $5.4 million: No Measure ULA tax applies.
• Sales from $5.4 million up to $10.9 million: Additional 4% transfer tax.
• Sales of $10.9 million and above: Additional 5.5% transfer tax.

These thresholds are adjusted annually, while the tax rates remain unchanged unless modified through future legislation or voter action.

Does Measure ULA Affect South Bay Property Owners?

For many South Bay residents, the answer is no.

Measure ULA applies only to properties located within the City of Los Angeles.

That means homes located in communities such as:

• Hermosa Beach
• Manhattan Beach
• Redondo Beach
• El Segundo
• Palos Verdes Estates
• Rolling Hills Estates

are not subject to Measure ULA simply because of their sale price.

However, many South Bay residents also own investment properties, second homes, or inherited real estate in Los Angeles neighborhoods such as:

• Playa del Rey
• Venice
• Mar Vista
• Westchester
• Brentwood
• Pacific Palisades
• Other communities within the City of Los Angeles

For those properties, Measure ULA may apply if the sale price exceeds the current thresholds.

Why This Matters

For higher-value transactions, transfer taxes can represent a significant closing cost.

Understanding these costs before listing a property allows sellers to better evaluate potential net proceeds, pricing strategy, and the timing of a sale. Buyers and investors also benefit from understanding how local regulations can influence the overall economics of a transaction.

While Measure ULA won't affect every homeowner, it's one more factor that should be considered when planning the sale of qualifying Los Angeles property.

Key Takeaways

• Measure ULA applies only to properties located within the City of Los Angeles.
• The tax rates remain 4% and 5.5%.
• Beginning July 1, 2026, the thresholds increased to $5.4 million and $10.9 million.
• The thresholds are adjusted annually for inflation.
• Planning ahead with your real estate advisor can help you understand how transfer taxes may affect your transaction.

Related Resources

You may also find these resources helpful:

• 2026 California Real Estate Laws: What Property Owners, Buyers, Sellers & Investors Should Know
• AB 968: Understanding California's Flipper Disclosure Law
• Understanding Senate Bill 721: What California Property Owners Need to Know
• Los Angeles County Homeowner Alert Service: What Property Owners Should Know
• Legal-Enhanced Guidance

Looking for Guidance?

Real estate laws continue to evolve, and every transaction presents unique considerations. If you're buying or selling property in Hermosa Beach, Manhattan Beach, Redondo Beach, El Segundo, or elsewhere in the South Bay, I'm happy to help you understand how these issues may affect your real estate goals.

Contact Steven Mullins

LEGAL & REGULATORY INSIGHTS DISCLAIMER

The information provided in this article is intended for general educational purposes only and should not be considered legal, tax, or financial advice. Laws and regulations may change, and every real estate transaction is unique.

Although Steven Mullins is a former attorney, he is not acting as your attorney and does not provide legal advice. Buyers, sellers, investors, and property owners should consult with qualified legal, tax, insurance, and financial professionals regarding their individual circumstances before making real estate decisions.

For additional information about California real estate laws, disclosure requirements, property owner protections, and other legal and regulatory topics, explore my Legal & Regulatory Insights articles.