By Jason Franklin | August 11, 2026

Measure ULA in Woodland Hills: Does the LA Mansion Tax Apply When You Sell?

If you're selling a home in Woodland Hills, Tarzana, Encino, or Studio City, you live in the City of Los Angeles — even if it doesn't feel like it. And that matters for one very specific reason: Measure ULA, the City of LA's real property transfer tax, applies to your sale if the price crosses the threshold.

Most West Valley sellers won't owe it. But if you're selling a luxury home, a multi-unit investment property, or anything in the range where prices can reach $5 million or above, this tax needs to be part of your planning conversation before you set a list price.

Here's what you need to know.

Does the Mansion Tax Apply to Your Neighborhood?

Measure ULA applies only within the City of Los Angeles — not to the broader county, and not to incorporated cities that happen to use "Los Angeles" as their mailing address.

The neighborhoods in Jason's market that are inside City of LA limits — and therefore subject to Measure ULA — include:

• Woodland Hills
• West Hills
• Tarzana
• Encino
• Sherman Oaks
• Studio City
• Valley Village
• Northridge
• Canoga Park

The neighborhoods that are outside City of LA limits — and therefore not subject to Measure ULA — include Calabasas, Hidden Hills, and Agoura Hills. If you're selling in Calabasas, you're in an incorporated city with its own government, and the LA mansion tax doesn't apply.

This is a question I get from sellers constantly: "My address says Los Angeles — does ULA apply?" The answer depends on whether you're in the City of LA (subject to ULA) versus an incorporated city or unincorporated county area that uses "Los Angeles" in its mailing address. For most West Valley neighborhoods, if you're in Woodland Hills, West Hills, Tarzana, or Encino, you're City of LA.

The 2026 Thresholds — and the Cliff That Comes With Them

As of July 1, 2026, Measure ULA's thresholds are:

• 4% tax on sales between $5,400,000 and $10,900,000
• 5.5% tax on sales above $10,900,000

These thresholds adjust each July 1 for inflation using the Chained Consumer Price Index. When Measure ULA first took effect in April 2023, the original tiers started at $5 million and $10 million.

The tax is calculated on the gross sale price. Your mortgage balance doesn't reduce it. Your cost basis doesn't reduce it. The improvements you made over 20 years don't reduce it. The number is the sale price, full stop.

This creates what attorneys and agents working in this market call the cliff — and it's dramatic.

The Cliff Math

Consider two sales in the same Encino neighborhood, on the same street, in the same week:

$5,200,000 sale (below threshold):

• LA County documentary transfer tax ($1.10 per $1,000): $5,720
• City of LA documentary transfer tax ($4.50 per $1,000): $23,400
• Measure ULA: $0
• Total transfer taxes: ~$29,120

$5,500,000 sale (above threshold):

• LA County documentary transfer tax: $6,050
• City of LA documentary transfer tax: $24,750
• Measure ULA (4% of full price): $220,000
• Total transfer taxes: ~$250,800

The difference is more than $220,000 — for a sale that's only $300,000 higher. That's the cliff. If you price your home at $5.4M versus $5.39M, you've triggered $216,000 in additional taxes on the entire sale amount. The tax doesn't phase in — it applies to every dollar once you cross the threshold.

This is why, in the City of LA luxury market, pricing decisions near the threshold require real analysis. A home that might sell for $5.5 million needs a serious look at what the seller nets at $5.5 million versus what they'd net by pricing it strategically below $5.4 million. Sometimes the higher list price wins. Sometimes it doesn't.

I walk every luxury seller through this before we discuss list price. Your net sheet isn't complete until Measure ULA is either ruled out or built in.

What Measure ULA Costs at Different Price Points

For luxury and investment property sellers in the City of LA:

• $5.5M sale → $220,000 in Measure ULA
• $6M sale → $240,000 in Measure ULA
• $7M sale → $280,000 in Measure ULA
• $10M sale → $400,000 in Measure ULA
• $11M sale → $605,000 in Measure ULA (5.5% rate kicks in)

At the $11 million mark, you're looking at $605,000 in Measure ULA alone — on top of roughly $68,000 in standard documentary transfer taxes. That's a $673,000 total transfer tax bill, paid by the seller at closing, with no deductions for basis or payoff.

Exemptions — There Are Almost None

The current law provides exemptions only for specific non-profits and government agencies transferring property under specific provisions of the Los Angeles Municipal Code. There are no exemptions for:

• Primary residences
• Senior citizens
• Long-term property owners
• First-time sellers
• Transfers between family members

Legislative proposals for senior exemptions and new construction exemptions have been circulating, but the City Council declined to move reforms to the June 2026 ballot. As of now, the current thresholds and rates remain in effect. There is talk of a November 2026 ballot measure. If you're planning to sell in the next 12–18 months and your property is near or above the threshold, it's worth watching — but don't bank on a change you haven't seen pass.

Off-Market Sales Don't Help

Some sellers above the threshold have explored off-market transactions hoping to reduce or avoid the tax. It doesn't work.

Measure ULA attaches to any transfer of real property within City of LA limits, regardless of whether the property was publicly listed or sold through an agent. A private off-market sale at $6 million still owes $240,000 in Measure ULA at closing.

Similarly, Measure ULA is a transfer tax — it can't be deferred through a 1031 exchange. A 1031 exchange defers capital gains tax and depreciation recapture on investment property sales. It has no effect on transfer taxes, which are owed at closing regardless of what happens next with the proceeds.

Who This Actually Affects in the West Valley

For most West Valley sellers, Measure ULA is something to understand and rule out — not a bill you'll owe.

The median sale price in Woodland Hills was approximately $1.1–$1.5 million as of mid-2026. The overwhelming majority of residential sales in West Hills, Woodland Hills, and Tarzana fall well below the $5.4M threshold. If you're selling a $1.5M home, Measure ULA doesn't touch you.

But there are specific scenarios where it does:

Luxury homes in Encino, Studio City, and Sherman Oaks. These neighborhoods regularly see transactions above $5 million. If you're selling a 6-bedroom hillside estate in Encino or a renovated traditional in Studio City at the high end of the market, you could be above the threshold — and the tax math needs to be part of your planning.

Multi-unit residential and investment properties. Measure ULA applies to all real property in City of LA limits, not just single-family homes. An investor selling a 12-unit apartment building in Northridge at $7.5 million owes 4% of the full sale price — $300,000 — in Measure ULA alone. If you're selling an investment property in this range, this is a significant line item in your overall tax analysis.

Woodland Hills hillside estates. The south-of-Ventura hillside neighborhoods regularly trade in the $3–6M+ range. If your home could plausibly land above $5.4M in the current market, the cliff math applies to you.

If You're Near the Threshold: How to Think About Pricing

If your home could realistically sell within $500,000 of the $5.4M threshold in either direction, the pricing conversation is more nuanced than a standard market analysis.

Here's the framework:

1. Model both sides of the threshold. What do you net at $5.2M (no ULA) versus $5.5M (4% ULA on full price)? The higher number doesn't always win.
2. Understand your buyer pool. Homes above the ULA threshold attract a more limited set of buyers who are aware of what the tax does to value. Market time can extend.
3. Factor ULA into your floor. If you have a minimum net you need to walk away with, work backward from that number with ULA included.
4. Stay current on the reform landscape. If November 2026 brings a ballot measure with meaningful exemptions, that could shift the calculation. A good agent will track this with you.

The city has seen a roughly 50% drop in luxury sales above the ULA threshold since the tax went into effect — buyers and sellers are both acutely aware of what crossing that number costs. That market dynamic affects pricing power, buyer demand, and time on market in ways that compound beyond the tax itself.

Frequently Asked Questions

Does Measure ULA apply in Woodland Hills?

Yes. Woodland Hills is within the City of Los Angeles — not an incorporated city like Calabasas — so Measure ULA applies to all qualifying sales there. The tax adds 4% of the gross sale price on transactions between $5,400,000 and $10,900,000 (2026 thresholds).

What is the current Measure ULA threshold in 2026?

As of July 1, 2026, Measure ULA applies at 4% for City of LA sales between $5,400,000 and $10,900,000, and at 5.5% for sales above $10,900,000. Thresholds adjust annually for inflation each July 1 using the Chained Consumer Price Index.

Who pays Measure ULA — the buyer or the seller?

The seller pays Measure ULA at closing, calculated on the gross sale price. It's assessed before any deductions for mortgage payoff, basis, improvements, or costs — the full sale price is what triggers and determines the tax.

Can I avoid Measure ULA by selling off-market?

No. Measure ULA applies to any transfer of real property within City of LA limits, regardless of whether the property was publicly listed. An off-market or private sale at a price above the threshold still triggers the tax in full.

Does Measure ULA apply in Calabasas?

No. Calabasas is an incorporated city separate from the City of Los Angeles. Measure ULA applies only within City of LA boundaries — Calabasas, Hidden Hills, and Agoura Hills are all outside those limits and not subject to the tax.

For most sellers in the West San Fernando Valley, Measure ULA is a line item to understand and cross off your list. But if you're selling a luxury home in Encino, an investment property in Sherman Oaks, or anything in Woodland Hills that could realistically trade above $5 million, it needs to be part of your planning — before you decide on a list price, not after.

If you're thinking through where your property stands and what it means for your net, I'm happy to walk you through it. Reach out anytime at jasonfranklinre.com.