Does Measure ULA Hit My South Bay Property Sale in 2026?

Published July 15, 2026

Only if the property sits inside the City of Los Angeles. El Segundo, Torrance, and Redondo Beach sales are not touched.

Measure ULA, the so-called mansion tax, only applies to real estate sales inside the City of Los Angeles. It does not reach El Segundo, Torrance, Redondo Beach, Manhattan Beach, Hermosa Beach, or any other independently incorporated South Bay city. As of July 1, 2026, the tax applies at 4 percent on the gross sale price for transactions between $5,400,000 and $10,900,000, and 5.5 percent at $10,900,000 and above, both figures adjusted for inflation each year.

What Measure ULA actually is

Voters approved Measure ULA in November 2022, and it took effect April 1, 2023, adding a new documentary transfer tax on top of the existing city and county transfer taxes on high-value real property sales. It is codified in the Los Angeles Municipal Code as Article 1.15, the Homelessness and Housing Solutions Tax, with the tax itself imposed under Section 21.9.2, and it covers both residential and commercial property. The seller pays it at closing, and it is calculated on the full gross sale price, not on the profit or gain from the sale. That last point trips people up. Even a seller who sells at a loss owes the tax if the sale price crosses the threshold.

The Los Angeles Office of Finance is the administering agency, and the city's own FAQ confirms the mechanics: sellers file and remit the tax as part of the standard transfer tax process handled at closing, typically through escrow.

The 2026 thresholds

The original 2023 thresholds were $5 million and $10 million. The ordinance builds in an annual adjustment tied to the Bureau of Labor Statistics Chained Consumer Price Index, so the dollar lines move most years. Effective for transactions closing on or after July 1, 2026, the thresholds moved to $5,400,000 and $10,900,000. Sales priced between those two figures owe 4 percent; sales at or above $10,900,000 owe 5.5 percent. Sales below $5,400,000 owe no ULA tax at all, only the standard city and county documentary transfer tax that applies citywide regardless of price.

Why the South Bay mostly does not apply

Measure ULA is a City of Los Angeles ordinance, not a Los Angeles County tax and not a statewide tax. It reaches property physically inside LA City limits, including neighborhoods like San Pedro, Wilmington, and Harbor City that sit within LA City's boundaries despite being geographically part of the South Bay. But the incorporated cities most of our owners hold property in, El Segundo, Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, Gardena, and Hawthorne, are each their own municipality with their own city council and their own transfer tax rules (or none at all beyond the county rate). None of them have adopted anything resembling Measure ULA. A seller listing a fourplex in El Segundo owes zero ULA tax no matter the sale price.

The distinction that actually matters for an owner is jurisdiction, not proximity. "South Bay" is a real estate marketing label, not a legal one. Check the city the parcel sits in, not the region it is colloquially grouped into.

What this means for you

If your rental or investment property is in an independent South Bay city, Measure ULA is simply not a factor in your sale, at any price. If you happen to also own something inside LA City proper, run the sale price against the current thresholds before you list, since crossing $5,400,000 changes the math meaningfully, and crossing $10,900,000 changes it again. The thresholds move each July, so a property priced right at the line this year could land differently next year.

If you want a second set of eyes on which jurisdiction your parcel actually sits in before you list, that is a five-minute check we are happy to run.

This is general information, not legal or tax advice. Confirm with a licensed real estate attorney, escrow officer, or tax professional before you act.

Sources

1. Real Property Transfer Tax and Measure ULA FAQ, Los Angeles Office of Finance
2. Los Angeles Municipal Code, Article 1.15, Homelessness and Housing Solutions Tax (Measure ULA)

Last verified: July 2026.

Topics: taxes, Measure ULA, transfer tax, South Bay real estate, El Segundo

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