What Are the Transfer Taxes and Fees a Seller Has to Pay When Selling a Home in the City of Los Angeles

Sellers in the City of Los Angeles pay two separate documentary transfer taxes: one to Los Angeles County and one to the City of Los Angeles itself. Both are calculated on the net consideration, meaning the sale price minus any outstanding loans the buyer assumes. Most residential sales in Los Angeles involve no loan assumption, so in practice both taxes are applied to the full sale price.

Los Angeles County Documentary Transfer Tax

The county rate is $1.10 per $1,000 of value (or $0.55 per $500, which is how it appears on the deed). On a $900,000 bungalow in Eagle Rock or a $1.1 million craftsman in Glassell Park, the county transfer tax alone comes to $990 or $1,210 respectively. It is a relatively modest line item on its own, but it stacks with the city tax described below.

City of Los Angeles Additional Transfer Tax

The City of Los Angeles charges an additional $4.50 per $1,000 of value on top of the county rate. That brings the combined baseline rate to $5.60 per $1,000 for any property that closes within city limits. Properties in unincorporated areas of Los Angeles County, or in separate cities like Pasadena, Beverly Hills, or Santa Monica, are not subject to this city-level charge. The distinction matters because many sellers assume all of Los Angeles County carries the same tax, but only properties with a City of Los Angeles address pay the $4.50 city portion.

At the combined rate of $5.60 per $1,000, a $1,200,000 home in Silver Lake generates $6,720 in combined documentary transfer taxes before any Measure ULA calculation. A $750,000 condo in Koreatown generates $4,200. These numbers appear as a debit to the seller on the HUD-1 or ALTA settlement statement at closing.

2. Measure ULA: The City of Los Angeles Mansion Tax Explained

Measure ULA is an additional transfer tax imposed by the City of Los Angeles on high-value property sales, and it is by far the largest transfer tax exposure most sellers face. Passed by voters in November 2022 and effective April 1, 2023, ULA applies only to properties within City of Los Angeles boundaries, not to the broader county. It is separate from and in addition to the standard documentary transfer taxes described above.

Which Properties Are Subject to ULA

ULA applies to all real property types: single-family homes, condos, multi-unit buildings, commercial properties, and vacant land. The tax kicks in at a sale price of $5,150,000 or more as of September 2026 (the threshold is adjusted annually for inflation using the Consumer Price Index). Properties that sell below that threshold owe zero ULA tax. There is no partial or graduated phase-in below the threshold; the tax applies to the entire sale price once the threshold is crossed.

How the ULA Tax Is Calculated

The ULA tax has two tiers. Sales between $5,150,000 and $10,299,999 are taxed at 4% of the total sale price. Sales of $10,300,000 and above are taxed at 5.5% of the total sale price. These figures reflect the inflation-adjusted thresholds for 2026; the City updates them each April 1.

• Tier 1 rate: 4% on the full sale price for properties selling between $5,150,000 and $10,299,999.
• Tier 2 rate: 5.5% on the full sale price for properties selling at $10,300,000 or more.
• Who pays: The seller is legally responsible for the ULA tax, though parties can negotiate who bears the cost in the purchase contract.
• Geographic scope: Only properties with a City of Los Angeles address. Properties in Beverly Hills, Culver City, West Hollywood, or unincorporated county areas are not subject to ULA.
• Threshold inflation adjustment: The City of Los Angeles adjusts the trigger price each April 1 based on the CPI. Always verify the current threshold with the City's Office of Finance before closing.

What Has Changed Since ULA Took Effect

Since Measure ULA took effect in April 2023, the luxury and upper-mid tier of the Los Angeles market has seen notable shifts in seller behavior. Some sellers of higher-priced properties in neighborhoods like Bel Air, Pacific Palisades, and Los Feliz adjusted their list prices or timing strategies in response to the added tax burden. A detailed look at how ULA reshaped the upper end of the Los Angeles market is worth reading if your property is near or above the threshold. The tax has also raised questions about how sellers price and time their closings, since even a $1 difference above the threshold triggers the full 4% rate on the entire amount.

It is also worth noting that ULA was challenged legally after its passage, and the situation around its enforcement has been subject to court proceedings. As of September 2026, the tax remains in effect and is being collected by the City. Sellers should confirm the current legal status with their real estate attorney or tax advisor before closing.

3. Escrow Fees, Title Charges, and Other Seller Costs

Beyond transfer taxes, sellers in the City of Los Angeles pay a set of closing costs that are standard in Southern California transactions. These costs are separate from the transfer tax line items and appear on different sections of the settlement statement. Understanding all of them together gives you a complete picture of your net proceeds.

Escrow Fees in Los Angeles

In Los Angeles, escrow fees are typically split between buyer and seller, though this is negotiable. The seller's share of escrow generally runs between $1,500 and $3,500 on a mid-range transaction, with the exact amount depending on the escrow company and the sale price. Escrow companies in the Los Angeles area charge either a flat fee or a rate-based fee (commonly around $2 per $1,000 of the sale price, with a base charge), so a $1.5 million sale might carry a total escrow fee in the range of $3,500 to $5,000 split between the parties.

Title Insurance and Related Charges

In Los Angeles County, it is customary for the seller to pay for the buyer's owner's title insurance policy. This is one of the larger closing cost items for sellers. The premium is based on the sale price and varies by title company, but a rough benchmark for a $1.2 million home is approximately $2,500 to $3,500 for the owner's policy. The buyer typically pays for their lender's title insurance policy separately.

Additional title-related charges the seller may see include a sub-escrow fee (usually $150 to $250), a document preparation fee, a notary fee, and a recording fee for the grant deed. These are smaller items individually but can add $500 to $1,000 in aggregate.

Other Common Seller Closing Costs

Several other costs routinely appear on a Los Angeles seller's settlement statement. A natural hazard disclosure report, required in California, runs $100 to $150. A home warranty offered to the buyer (common in competitive markets) typically costs $400 to $700. If the seller has an existing mortgage, a reconveyance fee of $50 to $150 is charged to release the lien. Any outstanding property taxes, HOA dues, or special assessments are prorated and credited or debited at closing as well.

• Real estate commission: Negotiated between seller and agent; no longer set by any industry standard following 2024 NAR settlement changes. Discuss this directly with your agent.
• Seller's escrow fee: Roughly $1,500 to $3,500 depending on price and escrow company.
• Owner's title insurance (paid by seller in LA): Approximately $2,500 to $3,500 on a $1.2 million sale.
• County documentary transfer tax: $1.10 per $1,000 of sale price.
• City of Los Angeles transfer tax: $4.50 per $1,000 of sale price (city limit properties only).
• Measure ULA tax (if applicable): 4% on sales $5,150,000 to $10,299,999; 5.5% on sales $10,300,000 and above (2026 thresholds).
• Natural hazard disclosure report: Approximately $100 to $150.
• Home warranty (optional): Approximately $400 to $700.
• Loan payoff reconveyance fee: Approximately $50 to $150.

4. Real-World Cost Examples for Los Angeles Properties

Concrete examples make these numbers easier to plan around. The two scenarios below use September 2026 tax rates and typical Los Angeles closing cost ranges. They exclude real estate commissions because those are negotiated separately and vary by transaction.

Example: A $1.2 Million Single-Family Home in the City of Los Angeles

Picture a three-bedroom craftsman in Atwater Village or a Spanish-style home in Los Feliz selling for $1,200,000. This sale is below the ULA threshold, so no Measure ULA tax applies.

• County documentary transfer tax: $1,320 ($1.10 x 1,200).
• City of Los Angeles transfer tax: $5,400 ($4.50 x 1,200).
• Measure ULA tax: $0 (below the $5,150,000 threshold).
• Owner's title insurance: Approximately $2,800 to $3,200.
• Seller's escrow fee: Approximately $1,800 to $2,400.
• Misc. title, recording, and disclosure fees: Approximately $500 to $800.
• Estimated total transfer taxes and closing costs (excluding commission): Approximately $11,820 to $13,120, or roughly 1% of the sale price.

Example: A $5.5 Million Property Subject to ULA

Now consider a larger home in Bel Air or a multi-unit building in Silver Lake selling for $5,500,000. This sale clears the ULA threshold, triggering the 4% Tier 1 rate.

• County documentary transfer tax: $6,050 ($1.10 x 5,500).
• City of Los Angeles transfer tax: $24,750 ($4.50 x 5,500).
• Measure ULA tax (4% on full price): $220,000.
• Owner's title insurance: Approximately $6,000 to $8,000.
• Seller's escrow fee: Approximately $4,000 to $6,000.
• Estimated total transfer taxes and closing costs (excluding commission): Approximately $260,800 to $264,800, with ULA representing the overwhelming majority.

The ULA tax's impact at this price point is substantial, which is why sellers near the threshold have good reason to model their net proceeds carefully before setting a list price. A Forbes analysis of how the ULA tax affects Los Angeles homeowners provides additional context on the financial planning considerations sellers face, particularly those with large capital gains on top of the transfer tax liability.

5. Frequently Missed Details and Seller Strategies

Several nuances around Los Angeles transfer taxes catch sellers off guard, and knowing them in advance can affect your net proceeds or your closing timeline. None of these are substitutes for advice from a licensed tax professional or real estate attorney, but they are worth raising with your team early.

Exemptions and Situations That Reduce the Tax

The standard documentary transfer tax has several recognized exemptions under California Revenue and Taxation Code Section 11930. Transfers between spouses or registered domestic partners, transfers to a revocable living trust where the transferor is the beneficiary, and certain corporate reorganization transfers may qualify for an exemption or a reduced tax. These exemptions apply to the documentary transfer tax; Measure ULA has its own separate exemption framework, which includes affordable housing transfers, certain government entity transfers, and deed-in-lieu-of-foreclosure situations. The ULA exemptions are narrower and more technical, so a real estate attorney's review is advisable for any transaction near or above the threshold.

One practical point: the ULA tax is applied to the total consideration, which in most cases means the sale price as written in the purchase agreement. If a seller provides a credit to the buyer at closing for repairs or other concessions, that credit does not reduce the taxable consideration for ULA purposes. The tax is calculated on the gross sale price.

Timing and Negotiation Considerations

For properties priced close to the ULA threshold, pricing strategy matters more than in any other segment of the Los Angeles market. A property listed at $5,200,000 that sells at $5,150,001 triggers $206,000 in ULA tax. The same property sold at $5,149,999 triggers zero ULA tax. That is a meaningful difference in net proceeds, and it is one reason sellers and their agents model multiple price scenarios before going to market on higher-end properties in neighborhoods like Hollywood Hills, Hancock Park, or Westwood.

Transfer taxes in the City of Los Angeles are technically the seller's obligation, but purchase contracts can include provisions where the buyer agrees to pay some or all of the transfer taxes as part of the negotiated deal. This is uncommon in standard residential transactions but does occur in commercial and investment property sales. If you are selling a multi-unit building or a mixed-use property in areas like Mid-City or the Arts District, it is worth discussing the allocation of transfer taxes explicitly in the offer.

If you are also thinking about what it costs to buy in Los Angeles, the 2026 Buyer Guide for Homes for Sale in Los Angeles covers the buyer side of the transaction in detail, including loan costs, inspection fees, and what to expect from the offer-to-close process.