Buyer’s Guide · Transfer Tax Strategy

Outside the LA Mansion Tax: Luxury Estates That Skip Measure ULA

Q: What is the LA mansion tax (Measure ULA)?

Measure ULA is a real-property transfer tax imposed by the City of Los Angeles. It applies to sales of real property within the city limits at the following rates: 4% on the sale price for transactions of $5 million up to $10 million, and 5.5% on the sale price for transactions of $10 million or more. It is charged on the gross sale price, not on the gain, and is generally paid by the seller at close of escrow.

Q: Does Measure ULA apply outside the City of Los Angeles?

No. Measure ULA applies only to property located within the City of Los Angeles. It does not apply to property in separately incorporated cities like Beverly Hills, Calabasas, Hidden Hills, Malibu, Santa Monica, or Westlake Village, and it does not apply to unincorporated areas of LA County or to Ventura County. Hidden Hills and Bell Canyon are both outside the City of LA and outside the tax.

Q: How much would Measure ULA cost on a $5.3 million sale?

At a $5.3 million sale price within the City of Los Angeles, Measure ULA would be charged at 4% on the full sale price, or roughly $212,000. The same sale in Bell Canyon, Hidden Hills, Calabasas, or other jurisdictions outside the City of LA would owe zero Measure ULA. The savings increase with price: at $10 million the City of LA rate jumps to 5.5%.

Q: Is Calabasas inside the City of Los Angeles?

No. Calabasas is its own incorporated city. Measure ULA does not apply. The same is true of Hidden Hills, Malibu, Beverly Hills, Santa Monica, Westlake Village, and other separately incorporated cities. Properties in Bell Canyon are in unincorporated Ventura County and also fall outside Measure ULA.

By Angie Dominguez, Listing Agent · Broker, Rodeo Realty Updated June 2026

Since April 2023, every luxury real-estate decision in greater Los Angeles has had a hidden line item attached: Measure ULA, the so-called "mansion tax." It quietly costs sellers hundreds of thousands of dollars at close of escrow — but only inside one specific jurisdiction. For buyers and sellers willing to look ten minutes outside the City of Los Angeles, the savings are real, the alternatives are excellent, and many of those alternatives are arguably better properties to begin with.

The short version: Measure ULA is a transfer tax of 4% on sale prices over $5 million and 5.5% over $10 million. It applies only within the City of Los Angeles. Hidden Hills, Calabasas, Malibu, Beverly Hills, Westlake Village, and Bell Canyon are all outside the city limits and outside the tax. On a $5.3 million estate, that is roughly $212,000 that stays with the seller.

What Measure ULA actually is

Measure ULA — "United to House LA" — was approved by voters in November 2022 and took effect April 1, 2023. It is a documentary transfer tax imposed by the City of Los Angeles on real property sold within the city's limits. The rates:

Sales of $5,000,000 to $9,999,999: 4% on the full sale price
Sales of $10,000,000 or more: 5.5% on the full sale price
Sales under $5,000,000: not subject to Measure ULA (existing city/county transfer taxes still apply)

The tax is charged on the gross sale price, not on the gain. It is collected at close of escrow and customarily paid by the seller. It applies regardless of how long the seller has owned the property and regardless of whether they made money on the sale.

Where the tax does and does not apply

The single most important fact about Measure ULA is also the most commonly misunderstood: it is a City of Los Angeles tax, not a Los Angeles County tax, not a Southern California tax, and not a California tax.

The City of Los Angeles is one specific incorporated city, with sharply defined boundaries. Many of the most desirable luxury neighborhoods in the metro area fall outside those city limits, sometimes by a single street.

Inside the City of LA — Measure ULA applies:

Bel Air
Brentwood
Pacific Palisades
Beverly Crest
Hollywood Hills (the LA side)
Encino
Sherman Oaks
Studio City
Venice
Hancock Park

Outside the City of LA — Measure ULA does not apply:

Beverly Hills (separately incorporated)
West Hollywood (separately incorporated)
Santa Monica (separately incorporated)
Malibu (separately incorporated)
Calabasas (separately incorporated)
Hidden Hills (separately incorporated)
Westlake Village (the LA County side, separately incorporated)
Unincorporated LA County areas
All of Ventura County, including Bell Canyon

What this costs in real numbers

The financial impact of Measure ULA is not subtle. On a single transaction at common Westside luxury prices:

Sale Price	Measure ULA owed (inside LA City)	Measure ULA owed (outside LA City)
$5,300,000	$212,000	$0
$7,500,000	$300,000	$0
$10,000,000	$550,000	$0
$15,000,000	$825,000	$0
$25,000,000	$1,375,000	$0

For a seller, this is real money — net proceeds shrink by the full amount. For a buyer, this is also leverage: a comparable property outside the city limits arrives without a tax overhang, which often translates to either a stronger offer position or simply a less complicated deal.

The relevance for buyers shopping near Calabasas

Most buyers who arrive at this article are not thinking about taxes. They are thinking about privacy, schools, lot size, equestrian access. What they typically discover is that the neighborhoods that solve all of those things — Hidden Hills, Calabasas, Bell Canyon — are also the neighborhoods that quietly skip Measure ULA.

The same private-school-pipeline schools, the same guard-gated communities, the same canyon views — without 4% to 5.5% of the future sale price evaporating at close of escrow.

It is a remarkably good combination, and it is one of the under-discussed reasons sophisticated buyers and their tax counsel increasingly look just outside the city limits.

For the seller looking at a future exit

If you intend to sell in five, ten, or twenty years, the math compounds against you inside the City of LA. Every dollar Measure ULA takes is a dollar that does not compound for you elsewhere. Buying outside the city limits today is, in part, an estate-planning decision.

Frequently asked questions

What is the LA mansion tax (Measure ULA)?

A 4% transfer tax on sales of real property between $5M and $10M within the City of Los Angeles, rising to 5.5% on sales of $10M or more. It is charged on gross sale price and customarily paid by the seller.

Does Measure ULA apply outside the City of Los Angeles?

No. Hidden Hills, Calabasas, Beverly Hills, Malibu, Westlake Village, all of Ventura County, and all separately incorporated cities are outside the tax.

How much would Measure ULA cost on a $5.3 million sale inside LA City?

Approximately $212,000 (4% of $5,300,000). The same sale in Bell Canyon, Hidden Hills, or Calabasas owes zero Measure ULA.

Is Calabasas inside the City of Los Angeles?

No. Calabasas is a separately incorporated city. So are Hidden Hills, Beverly Hills, Malibu, and Westlake Village. Bell Canyon is in unincorporated Ventura County. None of them are subject to Measure ULA.

About the author. Angie Dominguez is a Listing Agent and Broker with Rodeo Realty (DRE# 01127356) representing private estates in Bell Canyon and the Calabasas corridor. She currently holds the listing for Golden Ridge Estate, a guard-gated compound at 109 Buckskin Road, Bell Canyon, CA 91307.

This article is general information about Measure ULA and is not tax, legal, or financial advice. Tax outcomes vary by transaction and personal circumstances. Always consult a qualified tax professional and real estate attorney before acting on a transaction.

An estate outside the LA mansion tax

Golden Ridge Estate sits in Ventura County, outside the City of Los Angeles and outside Measure ULA.

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