Brentwood Mansion Tax: Measure ULA vs. Santa Monica Thresholds

For closings after June 30, 2026, the City of Los Angeles charges Measure ULA at 4% on any sale above $5,400,000 and 5.5% at $10,900,000 or more. It sits on top of the city's 0.45% base transfer tax, according to the Los Angeles Office of Finance. Santa Monica begins across 26th Street. It has a tax cliff too, but at a different price. Beverly Hills, a short drive east, has none.

So a buyer comparing these markets is really comparing three tax schedules. Which side of 26th Street costs a seller more changes as the price rises. That shapes where Brentwood asking prices tend to land.

A Tax That Lands on the Whole Price

Measure ULA is not a marginal rate. The city's own rate chart applies it to the full sale price once the threshold is crossed. The combined city rates are 4.45% between the two thresholds and 5.95% at $10.9 million and above. Los Angeles County adds its documentary transfer tax of $0.55 per $500, which works out to $1.10 per $1,000, as the County Recorder explains. That county tax applies in every city in the county.

The thresholds also move. For the 2025–26 year they were $5.3 million and $10.6 million. On July 1, 2026, they reset to $5.4 million and $10.9 million. So a comparable sale from last spring was priced against a different line than a listing going live this fall.

Three Cities, Three Different Cliffs

Santa Monica's city tax, as listed by the County Recorder, is $3 per $1,000 below $5 million and $6 per $1,000 from $5 million through $7,999,999. At $8 million and above, it jumps to $56 per $1,000, effective March 1, 2023. That top tier came from Santa Monica's Measure GS. Beverly Hills is not among the five cities the Recorder lists with special rates.

Where Westside Prices Have Been Landing

Prices have been settling just below these lines. A July 2026 study by Pepperdine and Beacon Economics found that after ULA, Los Angeles sale prices bunched just below the thresholds, especially near $5 million. Comparison areas did not show the same pattern. The study was funded by the Greater Los Angeles Association of Realtors and the Arthur N. Rupe Foundation. Its authors say they set the design and conclusions independently. It estimates that monthly high-value sales fell about 41% compared with surrounding cities, and that prices of $5 million-plus single-family homes underperformed by roughly 11% to 12%.

A June 2026 UCLA dissertation found a spike of recorded sales between $4.95 million and $5 million. That bin had 47% more transactions than the first price bin above the threshold. RAND's May 2026 report puts the drop in high-value sales at 31%. The studies use different samples and methods, so their figures measure different things and should not be read as a single Brentwood number.

On Brentwood's own streets, the pattern shows up in specific listings. In January 2026, the Richard Neutra-designed Sale House at 1531 North Tigertail Road came back on the market at $5.295 million, Mansion Global reported. That was $5,000 under the threshold then in effect. It had first listed the previous June at just under $8 million. The report does not say why the new price was chosen. At the top of the old range, MLS records show two homes in Brentwood and Pacific Palisades closing at $10,598,000 during the 2025–26 threshold year. That was $2,000 under the $10.6 million line. Across 26th Street, a house on Marguerita Avenue north of Montana closed on August 26, 2026, at $7,995,000. That is $5,000 under Santa Monica's $8 million line.

Why Some Brentwood Owners Are Remodeling Instead

The cliff also affects whether a house gets listed at all. In July 2026, The Real Deal reported on a Brentwood project where the owners first planned to sell. Builder Oren Levy of Gesh Group told the outlet that ULA plus agent commissions would have taken about 11% of their sale proceeds, so the owners put that money into renovating instead. A broker in the same Real Deal story said buyers "generally do not assign additional value to a property simply because the seller has a substantial ULA obligation."

That gap shapes negotiations above the line. A seller may want the price to cover the tax, but the buyer is pricing the house, not the seller's tax bill. Most Brentwood listings covered in the news this year are trophy homes, far above any threshold, where the tax is simply a large fixed cost. The Real Deal reported that the Ricardo Legorreta-designed "House of Two Towers" at 223 North Carmelina Avenue listed in October at just under $30 million. The outlet estimated that a sale at asking would bring about $1.8 million in transfer tax.

Brentwood Across Jurisdiction Lines

Not every 90049 address falls within the City of Los Angeles. The Brentwood Community Council notes that most of Brentwood is within the City of Los Angeles. Some land is unincorporated county territory, including property next to the Veterans Administration along San Vicente Boulevard and the stretch from Bringham to Montana Avenue.

This post is general information, not legal, tax or financial advice. Buyers and sellers should confirm how these rules apply to their own transaction with a qualified attorney, tax advisor or escrow professional.

Transfer Tax Questions

Has a court or the city changed Measure ULA?

In December 2025, an appeals court upheld the measure and rejected a challenge from the Howard Jarvis Taxpayers Association, Courthouse News reported. In July 2026, the City Council shelved a proposed exemption for newer apartment buildings, LAist reported.

What was on the November 3 ballot?

On November 3, 2026, two related measures were on the ballot. City Proposition TE would give a one-time ULA refund or exemption for residential properties damaged or destroyed in the Palisades Fire, as described in the city's voter pamphlet. It would not repeal the tax. Statewide Proposition 43 would require two-thirds voter approval for new, increased or extended voter-proposed local special taxes starting January 1, 2027, according to the Legislative Analyst's Office. It would not change ULA's rates.