Mansion Tax in West LA: What Luxury Sellers Pay in 2026
What is the mansion tax for luxury home sellers in West Los Angeles?
West Los Angeles luxury sellers face two different mansion taxes depending on which city their property is in. Homes within the City of Los Angeles — including Brentwood, Pacific Palisades, Venice Beach, and Hollywood Hills — are subject to Measure ULA, which charges 4% on sales at or above $5,400,000 and 5.5% on sales at or above $10,900,000 (2026 thresholds). Santa Monica properties face Measure GS instead, which charges 5.6% on the full sale price for transactions at or above $8,000,000. Both taxes are paid by the seller at closing, apply to the entire sale price — not just the amount above the threshold — and can add hundreds of thousands of dollars to the cost of selling a luxury home.
By Jordan Humphreys | August 17, 2026
If you own a luxury home in West LA and you're thinking about selling, there's a conversation we need to have before you settle on an asking price.
The mansion tax — or more precisely, the two mansion taxes that apply across this market — can cost you $200,000 to $800,000 or more at closing depending on where your home is and what it sells for. And the way these taxes are structured creates some genuinely counterintuitive math that catches sellers off guard every time.
Here's what you need to know.
Two cities, two different taxes. Brentwood, Pacific Palisades, Venice Beach, and Hollywood Hills are all within the City of Los Angeles. Those properties are subject to Measure ULA. Santa Monica is its own city. Properties there are subject to Measure GS — a completely separate transfer tax with different thresholds, different rates, and a different cliff point. This matters enormously in how you should think about pricing.
Measure ULA: The Los Angeles Mansion Tax
Measure ULA took effect April 1, 2023. It's a City of Los Angeles real property transfer tax that applies to all sales at or above the annual threshold, which adjusts each year for inflation. As of July 2026, the current thresholds are:
$5,400,000 to $10,899,999: 4% ULA tax on the full sale price
$10,900,000 and above: 5.5% ULA tax on the full sale price
The "full sale price" part is critical. ULA is not a marginal tax — it doesn't apply just to the amount above the threshold. Once you cross $5.4M, you owe 4% on every dollar of the sale.
The cliff math at $5.4M. A Brentwood home that sells for $5,399,999 owes zero ULA tax. The same home, listed at $5,450,000, owes $218,000 in ULA tax. That $50,001 price increase costs $168,000 more at closing. Net to the seller after ULA — before commissions, escrow, or title — you'd actually bring home less by pricing higher across that cliff.
This is why the $5M–$6M range in Brentwood and Pacific Palisades has become so interesting to price strategically. Your optimal price point depends on your mortgage payoff, your agent's compensation structure, your basis, and your read on buyer demand — not just what Zillow says the home is worth.
What a ULA bill looks like on real transactions.
Sale Price | ULA Tax | Combined Transfer Taxes
$5,500,000 | $220,000 | ~$244,750
$6,500,000 | $260,000 | ~$289,250
$8,000,000 | $320,000 | ~$356,000
$11,000,000 | $605,000 | ~$654,500
$15,000,000 | $825,000 | ~$892,500
*Combined includes ULA plus the base California and City of Los Angeles documentary transfer tax, approximately 0.45% of sale price total. Your title and escrow company will calculate your exact figure.
On top of these transfer taxes, you're looking at agent commissions, title insurance, escrow fees, and any repairs or credits negotiated after inspection. All-in, most luxury sellers in this market net somewhere between 88 and 92 cents on the dollar — sometimes less, depending on the deal.
Measure GS: The Santa Monica Mansion Tax
Santa Monica is not part of the City of Los Angeles, so ULA does not apply there. But Santa Monica passed its own transfer tax — Measure GS — which creates a completely different cost structure.
Measure GS has three tiers:
Under $5,000,000: 0.3% transfer tax
$5,000,000 to $7,999,999: 0.6% transfer tax
$8,000,000 and above: 5.6% transfer tax on the full sale price
The cliff at $8M is even sharper than ULA's cliff at $5.4M. At $7,999,999, a Santa Monica seller pays roughly $47,999 in city transfer tax. At $8,100,000, they pay $453,600. That $100,001 price increase triggers over $400,000 in additional taxes.
For Santa Monica luxury sellers in the $7.5M to $9M range, this isn't a minor wrinkle — it's the central variable in your pricing conversation.
Sale Price | Measure GS Rate | City Tax | Combined w/ State & County
$7,000,000 | 0.6% | $42,000 | ~$49,700
$7,900,000 | 0.6% | $47,400 | ~$56,000
$8,100,000 | 5.6% | $453,600 | ~$461,000
$10,000,000 | 5.6% | $560,000 | ~$567,500
$12,000,000 | 5.6% | $672,000 | ~$679,500
*Includes California documentary transfer tax and Los Angeles County transfer tax in addition to Santa Monica's Measure GS. Confirm exact amounts with your title and escrow company.
One note for coastal Santa Monica properties: if your home falls within the California Coastal Zone, certain disclosures and Coastal Commission considerations may apply to your transaction. Verify with your agent and legal counsel whether this affects your specific sale.
Building Your Actual Net Sheet
Both taxes are seller-paid at closing, included in the settlement statement your title and escrow company prepares. You'll work with the title company — typically chosen by the seller and negotiable in the purchase agreement — to confirm the exact calculation on your transaction.
Here's how to think about it before you list. Start with your expected sale price. Then subtract:
Mortgage payoff balance
Transfer taxes — ULA or Measure GS depending on your city, calculated from dollar one
Agent commissions — seller's side, plus buyer's agent compensation if being offered
Escrow and title fees
Any seller credits or repairs negotiated after inspection
What remains is your rough net. In this market, most sellers are surprised at how much lower that number is than the Zillow estimate — because Zillow doesn't factor in transfer taxes, and neither does most casual back-of-napkin math.
The only way to know your real number is to run it properly with someone who knows this market. That's exactly the conversation I have with every seller I work with before we talk about a list price. Your specific situation — your equity, your basis, your timing — determines whether the math works in your favor right now.
One more cost to model: capital gains. If your home has appreciated significantly — and in Brentwood, Santa Monica, and Pacific Palisades, 10–15 years of appreciation often means $2M to $5M in gains — your capital gains tax exposure is a real part of the net calculation. The federal primary residence exclusion is $250,000 for individuals or $500,000 for married couples. Above that, gains are taxed at federal rates up to 20%, plus California income tax rates that can exceed 13%. This is a conversation for your CPA before you sign a listing agreement, not after. The interaction of transfer taxes, commissions, and capital gains is what actually determines whether now is the right time to list.
For a broader picture of where the West LA market sits heading into the fall, the 2025 market outlook covers the key dynamics driving buyer and seller behavior across the metro — including how high mortgage rates are reshaping who's actually making moves right now.
Frequently Asked Questions
Does ULA apply to Pacific Palisades homes?
Yes — Pacific Palisades is within the City of Los Angeles, so Measure ULA applies to sales at or above $5,400,000. The recent reopening of the Village and ongoing rebuild activity in the Palisades has both sellers and buyers watching the market closely. If you're selling a fire-affected or rebuilt property, confirm with your agent and escrow company how the purchase price structure affects your ULA liability — lot sales, demolition scenarios, and insurance proceeds situations each have nuances worth verifying with a real estate attorney.
Is Santa Monica's mansion tax (Measure GS) the same as LA's ULA?
No — they're completely separate taxes. ULA applies only within City of Los Angeles boundaries. Santa Monica, Beverly Hills, Culver City, and other independent cities each have their own transfer tax structures (or none at all). Santa Monica's Measure GS activates at $8M versus ULA's $5.4M threshold, but at 5.6% once triggered it produces a comparable dollar cost. Always confirm your property's exact jurisdiction with your escrow company before assuming which tax applies.
Can I deduct mansion tax payments on my federal taxes?
Real property transfer taxes are generally treated as a selling expense for federal tax purposes, which can reduce your taxable capital gains. This reduces — but doesn't eliminate — your gains exposure. Your CPA can advise on the correct treatment of ULA or Measure GS payments on your specific return.
Can the buyer pay the mansion tax instead of the seller?
Technically, transfer tax allocation is negotiable in a California purchase agreement. In practice, the Southern California custom is that sellers pay transfer taxes, and buyers in this market rarely accept ULA or Measure GS liability. Attempting to shift it typically results in a corresponding adjustment somewhere else in the negotiation — the net financial outcome is usually similar.
Do 1031 exchanges defer the ULA or Measure GS mansion tax?
No. Measure ULA and Measure GS are transfer taxes, not capital gains taxes. A 1031 exchange defers your capital gains liability but does not exempt the transaction from transfer taxes. The mansion tax is due at closing regardless of whether you're doing an exchange. Confirm with your qualified intermediary and CPA before structuring a 1031 on a property subject to either tax.
Understanding your mansion tax liability is the starting point for knowing whether now is the right time to sell — and what price you need to walk away whole.
If you are looking to buy or sell a home in Los Angeles, our team would love to be your real estate resource of choice. Contact us today to get started.
About Jordan Humphreys
Jordan Humphreys is a Los Angeles luxury real estate agent specializing in buying and selling residential homes across Brentwood, Santa Monica, and Pacific Palisades. He began his career working alongside a top 1% nationwide producer with over $1 billion in career sales, and brings a background appraising more than 800 homes plus a business degree from the University of Colorado to every transaction. Jordan is known for meticulous, data-driven guidance and a client-first approach that keeps high-stakes deals stress-free.
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