How City of LA Taxes and Measure ULA Affect Your Studio City Home Sale

Studio City has long been one of the San Fernando Valley's most desirable neighborhoods, prized for its walkable village, proximity to the Westside and Hollywood studios, and strong school options. But if you're planning to sell, there's one factor that's reshaped seller economics across Los Angeles in recent years: Measure ULA, often referred to as the "mansion tax."

If you're searching sell my house in Studio City, understanding how city and county taxes — especially ULA — apply to your sale is essential before you set a price or timeline.

What Is Measure ULA?

Measure ULA (the United to House LA measure) took effect in April 2023 and imposes an additional transfer tax on real estate sales within the City of Los Angeles above certain price thresholds. Because Studio City home values frequently land in or near ULA's threshold range, many sellers here are directly affected.

ULA Tax Rates

• 4% tax on the total sale price for properties selling between roughly $5.15 million and $10.3 million
• 5.5% tax on the total sale price for properties selling above roughly $10.3 million

These thresholds are adjusted annually for inflation, so it's important to confirm the current-year figures with your agent or a tax professional before listing.

The Critical Detail: It's Based on Total Sale Price, Not Just the Gain

Unlike capital gains tax, which only applies to your profit, Measure ULA applies to the entire sale price once you cross the threshold. This means a Studio City home selling for $5.2 million would owe 4% of the full $5.2 million — not 4% of the appreciation — making it a significant line-item cost for sellers near the threshold.

Standard LA and California Transfer Taxes (Stacked on Top of ULA)

Measure ULA doesn't replace existing transfer taxes — it's added on top of them. Sellers in Studio City should budget for:

• California county transfer tax: typically $1.10 per $1,000 of sale price
• City of Los Angeles transfer tax: $4.50 per $1,000 of sale price
• Measure ULA tax: 4% or 5.5%, if applicable, based on the thresholds above

For a home selling near or above the ULA threshold, these combined transfer taxes can represent one of the largest closing costs in the entire transaction.

Strategies Sellers Are Considering Around ULA

While there's no way to avoid legitimately owed transfer taxes, sellers and their advisors have explored several strategies worth discussing with a professional:

• Timing the sale relative to annual threshold adjustments
• Structuring the transaction in consultation with a real estate attorney or CPA, particularly for properties close to the threshold
• Accurate valuation and pricing strategy to understand exactly where a sale will land relative to the ULA breakpoints before listing

Because ULA case law and interpretations continue to evolve, it's essential to consult a qualified real estate attorney or tax advisor for guidance specific to your transaction — this article is informational, not tax or legal advice.

Capital Gains Tax Still Applies Separately

In addition to transfer taxes, sellers still need to account for capital gains tax on any profit from the sale:

• The IRS home sale exclusion may shelter up to $250,000 (single) or $500,000 (married filing jointly) in gains if the home was your primary residence for 2 of the last 5 years
• Gains beyond that are subject to federal long-term capital gains rates (0–20%), a possible 3.8% Net Investment Income Tax, and California state tax as ordinary income (up to 13.3%)

Given Studio City's strong appreciation over the past decade, many long-term owners will owe some capital gains tax even after the exclusion, in addition to any applicable ULA and transfer taxes.

Disclosure and Regulatory Considerations for Studio City Sellers

Beyond taxes, Studio City sellers need to navigate standard California and City of LA seller obligations:

• Transfer Disclosure Statement (TDS) covering known material property conditions
• Natural Hazard Disclosure (NHD), including fire hazard severity zone status — relevant for hillside Studio City properties near Fryman Canyon and Beverly Crest-adjacent areas
• Unpermitted work disclosures, particularly common in older Studio City homes with additions, guest houses, or converted garages
• City of LA point-of-sale requirements, which may include certain retrofit or inspection obligations depending on the property

Failing to properly disclose known issues can create legal exposure well after closing, regardless of how the tax side of the sale is handled.

Planning Your Net Proceeds

With ULA, standard transfer taxes, and capital gains all potentially in play, Studio City sellers should work through a full net proceeds estimate before listing — not after an offer comes in. A realistic estimate accounts for:

• Expected sale price
• Standard county and city transfer taxes
• Measure ULA tax, if applicable
• Capital gains tax exposure
• Agent commissions and standard closing costs
• Any repair credits or concessions negotiated during escrow

Sellers who understand this full picture upfront are far better positioned to negotiate confidently and avoid surprises at the closing table.

Why Local Guidance Matters

Between Measure ULA, stacked transfer taxes, capital gains exposure, and Studio City's specific disclosure and permitting nuances, selling in this market requires more than a standard listing strategy. The right guidance helps you understand your real net proceeds before you commit to a price, and helps structure the sale to avoid costly missteps.

If you're searching sell my house in Studio City and want a team that understands both the tax landscape and the local market, Reeland Investments works with Los Angeles homeowners to navigate ULA exposure, transfer taxes, and disclosure requirements with a clear, transparent approach from listing through close.

Final Thoughts

Measure ULA has fundamentally changed the math for higher-value home sales across the City of Los Angeles, and Studio City sellers — many of whom sit near or above the ULA threshold — need to plan for it carefully. Combined with capital gains tax and California's strict disclosure requirements, a well-informed seller strategy is the difference between a smooth, profitable sale and an unpleasant surprise at closing.