07/15/2026
There is a way around this tax...and in fact all taxes....depending. Can work for residential...almost always can work for investment property. But, here is the artricle sent to me by Portfolio Escrow...which handles all my escrows on the sale of businesses.
Hi friends,
Real estate professionals, property owners, and investors in Los Angeles should be aware of an important Measure ULA update taking effect on July 1, 2026. Measure ULA, commonly known as the "Mansion Tax," imposes an additional transfer tax on certain real estate sales within the City of Los Angeles and applies to both residential and commercial properties.
"Beginning July 1, the tax thresholds will increase to account for inflation. Transactions exceeding approximately $5.4 million will be subject to a 4% tax, while transactions exceeding approximately $10.9 million will be subject to a 5.5% tax. Although the threshold increase may provide relief for some sellers, the tax remains substantial and can significantly impact net proceeds from a sale.
Because Measure ULA is calculated on the entire sales price once a threshold is exceeded, even a modest increase in value can trigger a significant tax obligation. For sellers considering listing or closing a property near these thresholds, transaction timing and pricing strategy may become increasingly important as the July 1 adjustment approaches.
As Los Angeles continues to refine Measure ULA, it is essential for buyers, sellers, agents, and investors to understand how these rules may affect their transactions. Portfolio Escrow remains committed to keeping our clients and industry partners informed of changes that impact the real estate market. If you have questions regarding Measure ULA or closing costs associated with your transaction, please contact your Portfolio Escrow representative.
As always, your trust matters to us, and we’re committed to safeguarding every step of your escrow experience.
Warmly,
Your Portfolio Escrow Team"
Contact me to talk about a possible "work-around" of the taxes upon sale.
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