Los Angeles has one of the more complex transfer tax structures in California. Real estate transactions are subject to three potential taxes: (1) the LA County Documentary Transfer Tax at $1.10 per $1,000 (0.11%); (2) the City of LA base transfer tax at $4.50 per $1,000 (0.45%); and (3) Measure ULA, a supplemental tax applied at 4% for sales between $5.3M–$10.6M and 5.5% for sales above $10.6M. The thresholds are adjusted annually for inflation.
In Los Angeles, transfer taxes are customarily paid by the seller, though the obligation is negotiable. For high-value transactions subject to Measure ULA, sellers bear a significant additional tax burden. Buyers and sellers should carefully review their purchase agreement and escrow instructions to confirm who is responsible for each tax component.
Certain transactions may be exempt from the LA County and City base transfer taxes, including interspousal transfers, gifts, and transfers to qualifying trusts. Measure ULA has fewer exemptions — it applies broadly to all qualifying sales above the threshold, including commercial, residential, and industrial properties. Affordable housing organizations and certain nonprofits may qualify for specific exemptions. Always consult a real estate attorney familiar with LA tax law before closing.