Measure ULA in 2026: What Los Angeles Commercial and Multifamily Sellers Actually Pay

The 2026-27 thresholds and rates

The thresholds are indexed each July to inflation. These are the figures published by the Los Angeles Office of Finance and the County Registrar-Recorder for sales recorded on or after July 1, 2026.

Some news coverage this fall still prints last year's $5.3 million and $10.6 million figures. Check the year before you rely on a number.

What a sale actually costs in transfer tax

Three taxes stack on a sale inside the City of Los Angeles: the City's base documentary transfer tax of $2.25 per $500 (0.45%), the County's $1.10 per $1,000 (0.11%), and ULA when the price crosses a threshold. Our arithmetic, using the published rates:

Two calculation details matter. The ULA portion is figured on the gross price, including any loans that stay on the property, while the base City tax is figured net of them. And the 4% tier begins above $5,400,000, so a sale at exactly that figure owes no ULA.

The cliff, and where a seller breaks even

Because ULA hits the whole price, there is a band just above each threshold where a higher price leaves the seller with less money after transfer taxes. By our math for 2026-27:

• A sale at $5,400,000 nets about $5,369,760 after transfer taxes. A buyer has to pay roughly $5,626,000 before the seller nets the same amount. Every price between those two numbers is worse for the seller.
• At the upper tier, a sale just under $10,900,000 nets about $10,403,000. The seller needs roughly $11,074,000 to match it at the 5.5% rate.

This band is why pricing a building near a threshold is a real decision, not a rounding question. It shapes the list price, the counteroffer you can accept, and whether a credit for repairs is better taken as a price reduction.

What the research says ULA has done to the market

The City reports roughly $1.4 billion collected since 2023, according to CalMatters, against early projections of $600 million to $1.1 billion a year. Two independent studies point to fewer large sales:

• The UCLA Lewis Center (Phillips and Ward, May 2025) found commercial, industrial, and multifamily transactions above the threshold fell 30% to 50%, and the odds of a sale above the threshold were cut roughly in half.
• RAND (May 2026), as reported by Commercial Observer, estimated high value sales fell 31%, with multifamily and commercial deals down more than 46% compared with about 28% for single family homes.

Not every analysis agrees on the size of the housing effect, and these are estimates, not counts. What owners see in practice is fewer buyers at the top of the range and more negotiation over who absorbs the tax.

Where ULA applies, and where it does not

ULA applies only inside City of Los Angeles limits. That matters in our market, because the boundary runs through neighborhoods owners think of as one place.

A mailing address that says "Los Angeles" does not mean the parcel is in the City. Confirm the jurisdiction on the parcel record before you price, the same way you would before serving a rent increase.

Exemptions and what is on the ballot

The measure exempts qualified affordable housing organizations, community land trusts, limited equity housing cooperatives, certain nonprofits, and government agencies, along with any transfer already exempt from the base City tax. We found no state law in effect that exempts new construction or any other property type.

As of October 14, 2026, three things are worth knowing:

• Prop TE, on the City's November 3, 2026 ballot, would give a one time ULA exemption to owners of residential property damaged or destroyed in the Palisades Fire. It does not affect commercial sales.
• Prop 43, on the statewide ballot, would require a two thirds vote for future citizen initiative special taxes starting in 2027. It does not repeal ULA. An earlier initiative that would have repealed it was withdrawn.
• The courts. The Court of Appeal upheld ULA in December 2025 and the California Supreme Court declined review, which ended the main state challenge.

We will update this page after the November election.

What this means if you are selling

If your building could trade near $5.4 million or $10.9 million inside the City, the transfer tax belongs in the pricing conversation from the first day, not at escrow. Run the net to seller at several prices, decide in advance how you will respond to an offer that lands in the cliff band, and confirm the parcel's jurisdiction before you list.

We price this into every broker opinion of value we prepare inside the City. If you want to know where your property falls, read how a BOV differs from an appraisal, or ask us for one.

Sources

1. City of Los Angeles Office of Finance, Measure ULA FAQ (opens in a new tab), rates, thresholds, gross value basis
2. Los Angeles County Registrar-Recorder, Documentary Transfer Taxes (opens in a new tab), City and County rates effective 7/1/26 and 7/1/25
3. UCLA Lewis Center, Phillips and Ward, May 14, 2025 (opens in a new tab)
4. RAND, The Effects of the Measure ULA Transfer Tax (2026) (opens in a new tab), figures as reported by Commercial Observer, June 2, 2026
5. Commercial Observer, June 2, 2026 (opens in a new tab)
6. CalMatters, Prop 43, October 9, 2026 (opens in a new tab), revenue collected to date
7. LAist, Prop TE voter guide (opens in a new tab)