Mansion Tax
Real Property Transfer Tax and ULA (United to House LA)
Effective for transactions closing after June 30, 2024, the new thresholds for ULA will be $5,150,000 and $10,300,000. Transactions above $5,150,000 but under $10,300,000 will be assessed a 4% tax and transactions $10,300,000 and up will be assessed a 5.5% tax.
Does the City impose a real property transfer tax other than the special tax imposed under Measure ULA?
Indeed, the City enforces a real property transfer tax on all documents that transfer real property within its jurisdiction. The current tax, known as the "Base Tax," is calculated based on the consideration or value of the real property interest being transferred, at a rate of 0.45%. Additionally, Measure ULA introduces a special tax, termed the "ULA Tax," which is levied on top of the Base Tax.
What are the rate components of the Base Tax and the ULA Tax under the City’s real property transfer tax?
- The Base Tax rate of $2.25 per $500 or part thereof (“Base Rate”).
- The ULA Tax rates of, 1) 4% for properties conveyed over $5,000,000, but under $10,000,000, and 2) 5.5% for properties conveyed at $10,000,000 or more (“ULA Rates”).
Value of Property Conveyed
| Value of Property Conveyed | Base Rate* | ULA Rate | Applicable Tax Rate |
| > $100; ≤ $5,000,000 | $2.25 / $500 | 0% | 0.45%* |
| > $5,000,000; < $10,000,000 | $2.25 / $500 | 4% | 4.45%* |
| ≥ $10,000,000 | $2.25 / $500 | 5.5% | 5.95%* |
*Note: the City’s Base Rate is $2.25 for every $500 or fractional part thereof. A transfer in which the value of the property conveyed is not divisible by $500 will be rounded up to the nearest $500 for the calculation of the Base Tax. This does not apply to the ULA Rate calculations, which are percentage-based.
DISCLAIMER: This is not tax advice. Please refer to the link below for further information.
