Measure ULA and California Transfer Taxes: What Home Sellers Owe

California Cash Home Buyers

Cash Offer in 24 Hours

No repairs or cleanup
No fees or commissions
Close on your timeline

Selling a California home with a big transfer tax bill?

Get a straight cash offer, as-is, and a written breakdown of who pays each tax and fee.

Last updated November 13, 2026. Reviewed by the Cash Home Buyers CA team.

Most California home sales trigger a transfer tax, and sales in the City of Los Angeles above a set price trigger a much larger one: the “mansion tax” from Measure ULA. This guide explains the state documentary transfer tax, the extra taxes some charter cities add, and exactly how ULA works for sellers.

Transfer taxes at a glance

State-authorized county tax	$0.55 for each $500 of value (Revenue and Taxation Code section 11911), collected when the deed is recorded
City of Los Angeles base tax	$2.25 for each $500, which is 0.45%
Measure ULA, City of Los Angeles	4% on sales over $5,400,000 and under $10,900,000; 5.5% at $10,900,000 or more (closings after June 30, 2026)
San Francisco	$2.50 to $30.00 for each $500, depending on price tier
Oakland	1.00% to 2.50%, depending on price tier
San Jose, Palo Alto, Mountain View	The Santa Clara County recorder lists $1.65 for each $500
Who collects it	The county recorder, at recording; Los Angeles also administers ULA exemptions through its Office of Finance and Housing Department

How the state documentary transfer tax works

California law lets a county impose a documentary transfer tax on each deed that conveys real property for value.

The rate in the statute is $0.55 for each $500 of value, or fractional part of $500, and county recorder pages such as Sacramento County’s explain that the tax is paid when the deed is recorded and is calculated on the value of the property less any loans the buyer assumes.

In practice it is collected through escrow, so you see it as a line on the settlement statement. Who pays is a term of the purchase contract and local custom, so ask your escrow officer what applies to your county.

If no tax is due, for example because of an exempt transfer, the deed must say so and the recorder may ask for an exemption declaration. We cover the statewide basics in our California real estate transfer tax report and the rest of your costs in the seller closing costs guide.

Charter cities can add their own transfer tax

Some cities, mostly charter cities, impose a transfer tax on top of the county tax. The rates differ widely, so a sale price that costs one seller a few hundred dollars in transfer tax can cost another many thousands depending on where the house sits.

San Francisco: the Assessor-Recorder lists $2.50 per $500 up to $250,000; $3.40 above $250,000 and under $1,000,000; $3.75 from $1,000,000 to under $5,000,000; $11.25 from $5,000,000 to under $10,000,000; $27.50 from $10,000,000 to under $25,000,000; and $30.00 at $25,000,000 or more. The higher rate applies to the entire value, not just the portion over the line.
Oakland: the city’s table shows 1.00% up to $300,000, 1.50% from $300,001 to $2,000,000, 1.75% from $2,000,001 to $5,000,000, and 2.50% above $5,000,000, with a reduced rate for some low and moderate income first-time buyers.
San Jose, Palo Alto and Mountain View: the Santa Clara County recorder lists a rate of $1.65 per $500 for properties in these cities.
Los Angeles: a base city tax of $2.25 per $500 plus the ULA tax described below.

Many other cities add nothing beyond the county tax. Confirm your own city with the county recorder or the city finance department before you set a bottom-line price. Our city pages, such as San Francisco, Oakland and San Jose, show how we buy in these markets.

What Measure ULA is

Measure ULA, called United to House LA, is an additional real property transfer tax approved by 58% of City of Los Angeles voters in November 2022, according to the Los Angeles Housing Department. It took effect January 1, 2023, and applies to qualifying conveyances on or after April 1, 2023.

The money funds an Affordable Housing Program (70%) and a Homelessness Prevention Program (30%). It applies only to property inside the City of Los Angeles, not to the rest of Los Angeles County, and it is charged in addition to the city’s base transfer tax.

ULA rates and thresholds

Up to $5,400,000	Base tax only, 0.45%; no ULA tax
Over $5,400,000 and under $10,900,000	Base tax plus 4% ULA, 4.45% in total
$10,900,000 or more	Base tax plus 5.5% ULA, 5.95% in total

The Office of Finance says the thresholds are adjusted every year using the chained consumer price index. For closings after June 30, 2026, they are $5,400,000 and $10,900,000. Earlier thresholds were lower, so check the date a deal actually closes rather than the date you signed the contract. ULA is not a marginal tax: once the price crosses the line, the percentage applies to the whole value.

A worked example

Say a house in the City of Los Angeles sells for $6,000,000 and closes after June 30, 2026. The ULA tax is 4% of $6,000,000, which is $240,000. The base tax is $2.25 for each $500, or $27,000. The combined city transfer tax is $267,000, before the county’s $0.55 per $500 tax.

At exactly $5,400,000 there is no ULA tax, so a sale that closes just under the line avoids it entirely. This is arithmetic from the published rates, not a quote; escrow calculates the real figure.

Gross value versus net value

The Office of Finance explains an important difference. The base tax is figured on net value, excluding liens or loans the buyer assumes. The ULA tax is figured on gross value, including the value of any lien or encumbrance remaining at sale, and including an assumed loan. So a sale with a large assumed mortgage does not shrink the ULA calculation.

Who is exempt from ULA

The exemptions depend on who the buyer is, not on what you do as the seller.

Under the Los Angeles Municipal Code, the ULA tax does not apply when the buyer is a qualified affordable housing organization, such as an experienced 501(c)(3) nonprofit, a community land trust or a limited-equity housing cooperative.

It also does not apply to certain other buyers: a 501(c)(3) that received its IRS determination at least 10 years before the sale and holds under $1 billion in assets, government agencies, and entities exempt from the city’s taxing power.

Transactions exempt from the base tax under local, state or federal law are exempt too. The Los Angeles Housing Department handles the affordable-housing exemption requests; the Office of Finance handles the others. If tax was paid and the buyer later qualifies, a refund claim is the route.

How transfer taxes affect your net proceeds

Transfer tax is one of several costs that come out of a sale. Others include agent commissions, escrow and title fees, and any capital gains tax. Our home selling costs report and capital gains guide cover those. For property you inherited, see the stepped-up basis guide.

If you are weighing offers in the City of Los Angeles near the ULA line, ask each buyer to put in writing who pays the tax and how it is calculated.

Pricing a Los Angeles sale near the ULA line

Because the 4% rate applies to the whole price, buyers of homes priced just above the threshold often factor the tax into their offers.

A seller can see the effect in two ways: fewer buyers at prices above the line, or offers that are lower by an amount that reflects the tax.

Cash buyers can often close faster and are used to working through these calculations, but the tax is a real cost either way. For local market context, see our Los Angeles housing report and We Buy Houses in Los Angeles.

Common mistakes

Assuming ULA covers all of Los Angeles County. It covers only the City of Los Angeles.
Using an old threshold. The cutoffs change each year, and the date that counts is the closing date.
Forgetting that the base tax, the county tax and ULA are separate and add together.
Assuming an assumed loan lowers the ULA amount. The tax uses gross value.
Ignoring city rates outside Los Angeles. San Francisco and Oakland have their own tiered rates.

What we could not confirm

We did not find an official statewide list of every city that adds its own transfer tax, so this page covers only the cities named above. San Jose’s detailed tier structure is not shown on the county recorder page, only the combined $1.65 rate.

We also did not confirm who customarily pays the tax in each county. For your sale, rely on your escrow officer and the recorder’s current rate sheet.

How to sell a house in California

Find out your city’s transfer tax rate and whether any threshold, such as the Los Angeles ULA line, applies to your price.
Ask escrow for an estimate of every transfer tax and who pays each one.
Compare a cash offer with a listing, counting commissions, repairs, holding costs and taxes.
Choose a closing date with the threshold and rates for that date in mind.
Review the settlement statement before you sign.

See also our Los Angeles County hub and the California guides index.

Selling in the City of Los Angeles or another high-tax city? Get a clear cash offer and a written breakdown of who pays what.

Get My Cash Offer

Frequently asked questions

What is the Measure ULA tax?

It is an extra transfer tax on sales in the City of Los Angeles above a price threshold: 4% over $5,400,000 and under $10,900,000, and 5.5% at $10,900,000 or more, for closings after June 30, 2026.

Does Measure ULA apply to the whole price or only the amount above the threshold?

The whole price. Once the sale price crosses the threshold, the rate applies to the entire value, which creates a cliff at the line.

Does ULA apply outside the City of Los Angeles?

No. The Office of Finance describes it as applying to conveyances within the City of Los Angeles.

What is the California documentary transfer tax rate?

State law authorizes counties to charge $0.55 for each $500 of value. Some cities add their own tax on top.

Who pays the transfer tax when I sell a house in California?

The purchase contract and local custom decide. Ask your escrow officer, and put the answer in the offer if you sell for cash.

Are any buyers exempt from the ULA tax?

Yes. Qualified affordable housing nonprofits, land trusts, government agencies and certain long-established 501(c)(3)s are exempt under the Los Angeles Municipal Code.

How are ULA thresholds updated?

The Office of Finance says they are adjusted yearly using the chained consumer price index; the current figures apply to closings after June 30, 2026.

Does an assumed mortgage reduce the ULA tax?

No. The ULA tax is calculated on gross value, including liens and assumed loans, while the base tax uses net value.

More guides

Sources

This guide is general information from public sources, not legal or tax advice. Confirm current rates and exemptions with the recorder or city finance department.