Updated August 6, 2026
Measure ULA is an LA City transfer tax on real estate sales above two dollar thresholds that adjust annually for inflation. It took effect April 2023 at $5M/$10M and sits at $5.4M/$10.9M for the current cycle. Rate: 4% between the two thresholds, 5.5% at or above the upper one. LA City only — not County, not other cities.
Measure ULA applies on top of existing LA City and County transfer taxes (~0.56% combined). For a $12 million LA multifamily sale, Measure ULA alone is $660,000. Revenue funds affordable housing programs, though collections (~$1.2B over the first three years) have run well below the city's original projections. The tax is on sale price, not gain. Even a sale at a loss is subject to Measure ULA if price exceeds the current threshold. A 1031 exchange does NOT exempt Measure ULA — it defers capital gains but the transfer tax applies anyway.
Measure ULA has shifted some buyer demand from LA City to LA-adjacent jurisdictions (Burbank, Glendale, Santa Monica). Sellers above the current threshold should factor Measure ULA into net proceeds calculation and consider 1031 replacement outside LA City to avoid future exposure. See the full Measure ULA strategy guide for current thresholds, worked examples, and structuring options.
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