By Jason & Missy Improta | The Improta Team, Calabasas & Hidden Hills Real Estate Experts
When the United to House LA (ULA) tax—commonly referred to as the “mansion tax”—was passed, it sent shockwaves through the Los Angeles real estate market. Designed to fund affordable housing and prevent homelessness, the intention behind the tax is noble. But as Realtors working directly with high-end homeowners and luxury sellers across Calabasas, Hidden Hills, and Los Angeles, we’ve seen the unintended consequences play out in real time.
What is the ULA Tax?
Effective as of April 1, 2023, the ULA tax applies to real estate sales within the city of Los Angeles (not the broader county). It imposes:
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A 4% tax on property sales between $5 million and $10 million
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A 5.5% tax on property sales over $10 million
This tax is paid by the seller—on top of existing transfer taxes, escrow fees, and agent commissions.
The Reality on the Ground
As agents, we’ve worked with both buyers and sellers navigating this new landscape, and here’s what we’re seeing:
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Inventory is down: Some sellers are choosing to hold off, lease, or sell off-market rather than take a 5%+ hit at the closing table.
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Off-market deals are increasing: To sidestep the tax, sellers are exploring “quiet listings” or homes just outside city limits where the ULA doesn’t apply.
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Buyers are more aggressive: While the tax technically applies to sellers, buyers are leveraging it during negotiations, pushing for price reductions or seller credits.
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Confusion still lingers: Many homeowners don’t know whether they fall within city boundaries or if their property qualifies. Others are shocked at how quickly the numbers add up.
Our Perspective
We understand the mission behind the ULA tax. Los Angeles does face a severe housing crisis. But as real estate professionals who guide clients through life-changing transactions, we also believe in transparency, fairness, and sustainability in policy. The current structure of the ULA tax is blunt—and it’s having a chilling effect on the luxury market, ultimately reducing the volume of sales that could be taxed in the first place.
What We Advise Our Clients
If you’re considering selling a property in LA proper that may fall under this tax, here’s our advice:
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Know your city boundaries: This tax only applies within Los Angeles city limits—not Beverly Hills, Calabasas, Hidden Hills, etc.
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Run the numbers early: Before listing, understand what your true net will be after factoring in the ULA tax.
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Consider your timing: If you’re selling a home that may be close to the $5M threshold, small pricing or staging decisions could impact your exposure.
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Consult your team: Work with an experienced Realtor, CPA, and attorney if needed to plan your sale strategy.
We’re always happy to be a resource for homeowners who have questions about the ULA tax or their options in this market.
Thinking about selling a luxury property in LA or the surrounding areas? Let’s connect and walk through your specific situation. No pressure—just smart strategy.