Transfer Taxes and Closing Costs When Selling a Home in the City of Los Angeles in 2026

When you sell a property in the City of Los Angeles, you pay two separate Documentary Transfer Taxes: one to Los Angeles County and one to the City itself. Both taxes are calculated on the sale price, and both are recorded on the grant deed at close of escrow. Understanding how they stack is the first step to estimating your true closing costs.

County Documentary Transfer Tax

The Los Angeles County Documentary Transfer Tax is set at $1.10 per $1,000 of the sale price, or $0.55 per $500. On a $900,000 sale, that works out to $990. On a $1.5 million sale, it comes to $1,650. The county tax applies to every property transfer in unincorporated Los Angeles County and within incorporated cities, including the City of Los Angeles. It is typically the seller's responsibility by local custom, though it is technically negotiable.

City of Los Angeles Documentary Transfer Tax

The City of Los Angeles adds its own Documentary Transfer Tax on top of the county charge, at a rate of $4.50 per $1,000 of the sale price. On that same $900,000 sale, the city layer adds $4,050. On $1.5 million, it adds $6,750. Combined with the county tax, a seller on a $900,000 sale in the City of Los Angeles pays $5,040 in base transfer taxes before Measure ULA is even considered.

How the Two Taxes Stack

The combined base rate for properties inside the City of Los Angeles is $5.60 per $1,000 of the sale price ($1.10 county plus $4.50 city). A seller in Culver City, Santa Monica, or Pasadena pays different city rates because those are separate municipalities with their own transfer tax ordinances. This article focuses specifically on the City of Los Angeles, which covers neighborhoods from Hollywood and Silver Lake to the San Fernando Valley communities of Reseda, Northridge, and Chatsworth.

2. Measure ULA: The Additional Transfer Tax on High-Value Properties

Measure ULA is an additional City of Los Angeles transfer tax that took effect April 1, 2023, and remains in full force in 2026. It applies to residential and commercial property sales above certain price thresholds and is separate from, and in addition to, the standard Documentary Transfer Taxes described above. For sellers of higher-priced Los Angeles homes, Measure ULA is often the single largest transfer tax line item on the closing statement.

What Measure ULA Charges and When It Applies

Measure ULA imposes a 4% tax on the full sale price of any property that sells for $5,000,000 or more but under $10,000,000, and a 5.5% tax on the full sale price of any property that sells for $10,000,000 or more. These are not marginal rates. If your property sells for exactly $5,000,000, the 4% applies to the entire $5,000,000, resulting in a $200,000 tax. If it sells for $10,000,000, the 5.5% applies to the entire $10,000,000, resulting in a $550,000 tax. The thresholds are adjusted annually for inflation, so sellers should confirm the current figures with the Los Angeles Office of Finance before closing.

For the official current thresholds, exemption criteria, and FAQs, the Los Angeles Office of Finance Measure ULA FAQ page is the authoritative source. It is updated as thresholds adjust and is worth bookmarking if you are selling a higher-value property.

Which Properties Are Exempt or Excluded

Measure ULA includes limited exemptions, and sellers should not assume they qualify without verifying with a tax professional or the Office of Finance. Transfers involving certain affordable housing entities, qualified nonprofits, and some government-related transfers may be exempt. Transfers below the applicable threshold are not subject to Measure ULA at all. The tax does not apply to properties sold in cities other than the City of Los Angeles, even if those cities are within Los Angeles County.

Real Dollar Examples on Los Angeles Sales Prices

To put Measure ULA in concrete terms: a Los Feliz Tudor that sells for $5,200,000 in September 2026 would owe $208,000 in Measure ULA alone, plus the standard $29,120 in combined county and city Documentary Transfer Taxes, for a total transfer tax bill of roughly $237,120. A West Hollywood Hills modern that closes at $11,000,000 would owe $605,000 in Measure ULA plus $61,600 in standard transfer taxes, totaling $666,600 in transfer taxes before any other closing costs. These are not hypothetical numbers; they reflect the actual rate structure currently in effect.

If you are selling a luxury property in Los Angeles, the Top-Rated Luxury Home Realtor in Los Angeles, CA article on this site walks through how high-value transactions in the City of Los Angeles differ from standard sales and what sellers in that price range need to prepare for.

3. Escrow, Title, and Other Standard Seller Closing Costs

Beyond transfer taxes, sellers in the City of Los Angeles pay a cluster of additional closing costs that typically total between 1% and 2% of the sale price, not counting agent commissions. These include escrow fees, title insurance, mandatory disclosure reports, and prorated property taxes. Each one is predictable if you know what to look for.

Escrow Fees in Los Angeles

Escrow fees in Los Angeles are typically split 50/50 between buyer and seller, though this is negotiable and can vary by transaction. Escrow companies charge a base fee plus a per-thousand rate. On a $900,000 sale, a seller's share of escrow might run $1,500 to $2,200 depending on the company. On a $2,000,000 sale, the seller's portion often falls in the $2,500 to $4,000 range. Los Angeles uses escrow companies rather than real estate attorneys to close transactions, so the escrow officer handles document preparation, fund disbursement, and recording coordination.

Title Insurance

In Los Angeles, it is customary for the seller to pay for the buyer's owner's title insurance policy, which protects the buyer against title defects discovered after closing. The cost is based on the sale price and is set by the title company's rate schedule. On a $900,000 sale, the owner's policy typically costs between $1,800 and $2,500. On a $2,000,000 sale, it is commonly in the $3,500 to $5,000 range. The seller does not pay for the lender's title policy; that is the buyer's cost.

Natural Hazard Disclosure and Other Reports

California law requires sellers to provide a Natural Hazard Disclosure (NHD) report, and in Los Angeles this report is especially detailed given the city's exposure to earthquake fault zones, fire hazard severity zones, and flood areas. NHD reports typically cost $100 to $200. Sellers may also pay for a preliminary title report, a home warranty (often offered as a buyer incentive, commonly $500 to $700), and any city-required inspections such as the Los Angeles Department of Building and Safety's retrofit compliance for soft-story buildings or the DWP's water conservation ordinance compliance for properties with older fixtures.

Los Angeles also has a local ordinance requiring sellers of properties built before 1994 to certify that low-flow toilets and showerheads are installed. Non-compliance must be addressed before close of escrow or credited to the buyer. This is a cost that surprises many first-time sellers in older Craftsman bungalows in neighborhoods like Highland Park or Glassell Park.

Property Tax Prorations and HOA Fees

Property taxes in Los Angeles County are paid in two installments: the first is due November 1 and covers July through December; the second is due February 1 and covers January through June. At closing, taxes are prorated to the day of transfer. Depending on when you close, you may owe the buyer a credit for taxes already paid that cover the period after closing, or the buyer may owe you a credit. This is handled through escrow and shows up as a line item on your closing statement.

If your property is in a homeowner's association, HOA dues are also prorated at closing. Some Los Angeles condo buildings and planned communities, particularly in areas like Playa Vista or Warner Center, also charge transfer fees or document preparation fees at the time of sale. These range from a few hundred dollars to over $1,000 depending on the HOA.

4. Agent Commission and How It Affects Your Net

Agent commission is almost always the largest single closing cost a seller pays, and in 2026 it is more variable than it has been in past years following the NAR settlement changes that took effect in August 2024. Sellers should understand both what they are paying and what they are getting for it.

What Sellers Pay in Commission in 2026

Under the post-settlement framework, sellers in Los Angeles now negotiate their listing agent's commission separately from any compensation offered to the buyer's agent. Listing agent commissions in Los Angeles currently run between 2% and 3% of the sale price in most transactions. Whether and how much a seller offers toward the buyer's agent compensation is now a negotiated term, not a fixed custom. On a $1,200,000 sale, a 2.5% listing commission comes to $30,000. If the seller also agrees to contribute 2% toward the buyer's agent, that adds another $24,000, for a total commission outlay of $54,000.

For a deeper look at how to evaluate and choose a listing agent in this environment, the article on what to look for when choosing a Realtor to sell your home in Los Angeles covers the key questions to ask before signing a listing agreement.

How Commission Interacts with Your Other Closing Costs

Commission is calculated on the gross sale price, the same number used to calculate transfer taxes. This means that on a $5,100,000 sale in Los Angeles, a seller faces Measure ULA at 4% ($204,000), standard transfer taxes of roughly $28,560, a listing commission of perhaps $127,500 (2.5%), and potential buyer agent contribution of another $102,000 (2%), before escrow, title, and other fees. The cumulative picture is why building a detailed net sheet before accepting any offer is not optional; it is essential.

5. Putting It All Together: What a Seller Actually Nets

A complete picture of seller closing costs in the City of Los Angeles in 2026 requires adding every layer: transfer taxes, Measure ULA if applicable, escrow, title, reports, and commission. The examples below use round numbers and assume the seller pays a 2.5% listing commission and contributes 2% toward the buyer's agent.

Sample Net Sheet at Three Price Points

At $900,000 (a typical mid-tier sale in neighborhoods like Koreatown, Eagle Rock, or parts of the Valley): the standard transfer taxes total $5,040; Measure ULA does not apply; a 4.5% combined commission totals $40,500; escrow and title combined run approximately $5,000; NHD and miscellaneous reports add roughly $500. Total estimated closing costs: approximately $51,040, leaving a gross net of around $848,960 before mortgage payoff.

At $1,800,000 (common for single-family homes in Los Feliz, Atwater Village, or Mar Vista): standard transfer taxes total $10,080; Measure ULA still does not apply; a 4.5% combined commission totals $81,000; escrow and title combined run approximately $8,000; miscellaneous costs add $1,000. Total estimated closing costs: approximately $100,080, leaving a gross net of around $1,699,920 before mortgage payoff.

At $5,500,000 (reflecting larger estates in Bel Air, Pacific Palisades, or Hancock Park): standard transfer taxes total $30,800; Measure ULA at 4% adds $220,000; a 4.5% combined commission totals $247,500; escrow and title combined run approximately $15,000; miscellaneous costs add $2,000. Total estimated closing costs: approximately $515,300, leaving a gross net of around $4,984,700 before mortgage payoff.

These are estimates, not guarantees. Your actual closing statement will reflect your specific negotiated terms, your escrow and title company's rate schedules, your HOA situation, and the exact closing date. Your listing agent should provide you with a written estimated net sheet as part of the listing consultation.

Steps to Reduce Your Closing Cost Exposure

There are legitimate ways to manage your closing costs in Los Angeles without cutting corners on the sale. First, negotiate the commission structure clearly before signing a listing agreement; the post-2024 environment gives sellers more flexibility than before. Second, shop escrow and title companies; while the rate differences are not enormous, they are real on high-value transactions. Third, if your property is near the Measure ULA threshold, work with your agent and a tax advisor to understand your pricing strategy, since a sale at $4,999,999 avoids the tax entirely while a sale at $5,000,001 triggers it on the full amount.

Fourth, address any city compliance items (low-flow fixtures, soft-story retrofit documentation) before listing rather than being surprised by a buyer credit demand at the end of escrow. Fifth, confirm your HOA's transfer fee schedule in advance so it does not appear as an unexpected line item on your closing statement.

For a broader look at how the Los Angeles market is performing right now and how pricing strategy connects to your net proceeds, the Los Angeles Real Estate Market Guide: Prices, Neighborhoods and Timing covers current conditions across the city's major submarkets.