If you’re selling a home in Woodland Hills, does the Measure ULA “Mansion Tax” apply to your transaction?
Woodland Hills is inside the City of Los Angeles, so Measure ULA does apply here. However, the tax only kicks in on sales above $5.4 million (as of closings after June 30, 2026), meaning the vast majority of Woodland Hills sellers will never owe it.
Why This Matters for Woodland Hills Sellers Right Now
You’ve probably heard the term “mansion tax” floating around at neighborhood barbecues or in conversations along Ventura Boulevard. It sounds alarming, and if you own property in Woodland Hills, you deserve a straight answer about whether it affects you.
Here’s the reality: the median sold price in Woodland Hills is $1,201,100 as of August 2026, according to Resideline data across 526 tracked closings. That’s roughly $4.2 million below the Measure ULA threshold. So if you own a typical single-family home on the flats north of Ventura Blvd, you can exhale.
But if you own a hillside estate south of Ventura Boulevard, in an enclave like Mulholland Estates or Westchester County Estates, where values run $1.6M to $3.5M and above, you need to understand exactly where the line is and what happens if your sale crosses it. The difference between pricing at $5.35 million and $5.45 million could cost you over $200,000. That is not a typo.
What I tell my clients is simple: know your number, know the thresholds, and let’s build your pricing strategy around the math, not the emotion.
What Measure ULA Actually Is and How It Works in Woodland Hills
Measure ULA, formally the Homelessness and Housing Solutions Tax, was approved by City of Los Angeles voters in November 2022. It imposes a transfer tax on real property sales within L.A. city limits that exceed specific price thresholds. Revenue goes toward affordable housing production and homelessness prevention.
For sales closing after June 30, 2026, per the Los Angeles Office of Finance, the thresholds are:
- 4% tax on sales above $5,400,000 but under $10,900,000
- 5.5% tax on sales at $10,900,000 and above
These thresholds adjust annually based on the Bureau of Labor Statistics Chained Consumer Price Index.
Here’s the part that catches people off guard: the tax applies to the full sale price, not just the amount above the threshold. There is no primary residence exemption. There is no 1031 exchange workaround (this is a transfer tax, not a capital gains tax). And the seller pays it.
So what does that look like in dollars? If a Woodland Hills hillside estate sells for $5,500,000 after July 1, 2026, the Measure ULA tax alone would be $220,000 (4% of $5.5M). Add the base City of Los Angeles transfer tax (roughly 0.45%) and the county documentary transfer tax, and you’re looking at total transfer taxes in the neighborhood of $250,000.
Compare that to a sale at $5,350,000, which stays under the threshold and avoids the ULA tax entirely. Your transfer taxes would be limited to the standard city and county amounts. That’s a net difference that makes pricing strategy critical at this level.
The Transfer Taxes Every Woodland Hills Seller Pays (Regardless of Price)
Even if Measure ULA never touches your sale, you still owe transfer taxes as a Woodland Hills seller. Every property that changes hands within the City of Los Angeles is subject to:
- City of Los Angeles transfer tax: $2.25 per $500 of consideration (approximately 0.45%)
- Los Angeles County documentary transfer tax: $1.10 per $1,000 (approximately 0.11%)
On a $1.25 million sale, that works out to about $7,000 combined. On a $1.65 million sale (the price of the most recent Woodland Hills transaction I was involved in on the buyer side), the combined standard transfer taxes run a bit higher but remain a modest closing cost relative to the sale price.
These are non-negotiable costs baked into every L.A. city transaction. They’re not new, and they’re not going away. What I always recommend is building them into your net sheet early so there are no surprises at the closing table.
Does Measure ULA Affect the Typical Woodland Hills Home Sale?
For the vast majority of you: no, it does not. And that’s worth repeating clearly.
The middle half of Woodland Hills sales close between $895,000 and $1,700,000, per Resideline’s August 2026 data. Single-family homes on the flatlands range from about $850,000 on the lower end to over $2 million for homes closer to the hillside. Warner Center condos trade between roughly $520,000 and $950,000. None of these price points are anywhere near $5.4 million.
So who in Woodland Hills should actually be thinking about this? Sellers with:
- Hillside estates south of Ventura Blvd valued above $3.5 million, especially those where appreciation could push values toward the $5.4M threshold over time
- Large custom properties in gated communities like Natoma Estates or Mulholland Estates
- Multi-unit investment properties where combined value exceeds the threshold
If your home is on the flats of Woodland Hills, priced in that $950K to $1.5M range where the market is most active, Measure ULA is not your concern. Your pricing strategy, preparation, and timing matter far more. With 6 years of experience and 40 closed transactions in the San Fernando Valley, I can tell you that the sellers getting the strongest results right now are the ones who price accurately from day one, not the ones worrying about a tax that doesn’t apply to them.
The Pricing Cliff: Why $5.4 Million Is Not Just Another Number in Woodland Hills
This is where Measure ULA gets strategically interesting, and where I spend the most time educating sellers in this price range.
Because the tax applies to the full sale price, not just the amount above the threshold, there’s a sharp “cliff effect.” Pricing just under $5.4 million can actually net you more money than pricing just over it.
Consider two scenarios for a hillside property:
- Scenario A: Sale at $5,350,000. You pay standard city and county transfer taxes only. Total transfer tax cost: roughly $30,000.
- Scenario B: Sale at $5,450,000. You now owe Measure ULA at 4% on the full price ($218,000), plus standard transfer taxes. Total transfer tax cost: roughly $248,000.
In Scenario B, you sold for $100,000 more but netted approximately $218,000 less. That math is brutal, and it’s reshaping how sellers and their agents approach pricing near the threshold.
UCLA research estimates that the odds of a property selling above the $5 million threshold fell by as much as 55% since Measure ULA took effect. That’s not a small market distortion. It’s a fundamental shift in how high-value transactions work within L.A. city limits.
And here’s a detail that matters for Woodland Hills sellers specifically: neighboring Calabasas and Hidden Hills are separately incorporated cities. They are not subject to Measure ULA. Buyers at the $5M+ level are absolutely comparing value across those city boundaries, and your pricing needs to account for that competitive reality.
What Could Change: The November 2026 Ballot
If you’re watching this space, there are two developments worth tracking. A Howard Jarvis Taxpayers Association-backed measure that would significantly limit local transfer taxes, including Measure ULA, has qualified for California’s November 2026 ballot.
Separately, the L.A. City Council has delegated the question of potential ULA modifications to a select committee chaired by Councilmember Ysabel Jurado, which could recommend changes that also appear on the November ballot.
What does this mean for you if you’re selling in Woodland Hills in late 2026 or early 2027? It means the landscape could shift, but it hasn’t shifted yet. I would never advise a client to delay a sale based on potential future legislation. You make decisions based on the rules as they exist today. If the law changes in your favor, that’s a bonus, not a strategy.
Frequently Asked Questions
Does Measure ULA apply to all Woodland Hills home sales?
No. Measure ULA only applies to sales above $5,400,000 (for closings after June 30, 2026, per the Los Angeles Office of Finance). The Woodland Hills median sold price is $1,201,100 as of August 2026 according to Resideline, so the vast majority of sellers are well below the threshold and will never owe this tax.
Is Woodland Hills inside the City of Los Angeles?
Yes. Woodland Hills is a neighborhood within the City of Los Angeles, which means all City of L.A. taxes, including Measure ULA, apply to qualifying transactions here. Neighboring Calabasas and Hidden Hills are separately incorporated and are not subject to ULA.
Who pays Measure ULA, the buyer or the seller?
The seller pays it. Measure ULA is a city transfer tax assessed on the seller at closing. It sits on top of the standard city and county transfer taxes that already apply to every sale within the City of Los Angeles.
Is there a primary residence exemption for Measure ULA in Woodland Hills?
No. Measure ULA has no primary residence exemption. Whether the property is your home, a rental, or a commercial building, the tax applies to any sale above the threshold within L.A. city limits.
What are the standard transfer taxes on a Woodland Hills sale below $5.4 million?
You’ll pay the City of Los Angeles transfer tax ($2.25 per $500, approximately 0.45%) plus the Los Angeles County documentary transfer tax ($1.10 per $1,000). On a $1.25 million sale, that totals about $7,000 combined.
Can I use a 1031 exchange to avoid Measure ULA?
No. Measure ULA is a transfer tax, not a capital gains tax. A 1031 exchange defers capital gains taxes, but the ULA transfer tax is assessed at the point of sale regardless of how you reinvest the proceeds.
What are the current Measure ULA thresholds for 2026?
For closings after June 30, 2026, the thresholds are $5,400,000 (4% tax rate) and $10,900,000 (5.5% tax rate), per the Los Angeles Office of Finance. These figures adjust annually based on the Chained Consumer Price Index.
Could Measure ULA be repealed or changed?
Potentially. A Howard Jarvis Taxpayers Association-backed ballot measure targeting local transfer taxes has qualified for California’s November 2026 ballot. The L.A. City Council has also formed a committee to recommend possible modifications. No changes are in effect as of September 2026.
Does Measure ULA apply to condos in Warner Center?
It applies to any real property sale within the City of Los Angeles above the threshold. Since Warner Center condos typically trade between roughly $520,000 and $950,000, the tax would not apply to the vast majority of condo sales in that area.
Should I price my Woodland Hills home just below $5.4 million to avoid the tax?
If your home’s market value is near the threshold, this is a conversation worth having with your agent and tax professional. Because ULA is calculated on the full sale price, pricing at $5,350,000 can net you significantly more than pricing at $5,450,000. The math is not intuitive, which is why strategic pricing at this level is critical.
The Bottom Line
For most Woodland Hills sellers, Measure ULA is not your problem. Your home’s value almost certainly falls well below the $5.4 million threshold, and your transfer tax obligations are limited to the standard city and county amounts (roughly $7,000 on a $1.25M sale).
If you do own property near or above that line, the pricing strategy becomes one of the most consequential financial decisions of the entire transaction. This is not a place for guesswork.
With 55 five-star reviews and a GRI designation backed by the UCLA Real Estate Entrepreneurship program, I approach every listing with the same discipline I learned during my time as a Sergeant in the U.S. Army: preparation, attention to detail, and no shortcuts. If you’re considering selling in Woodland Hills, Northridge, Tarzana, Encino, or anywhere across the western San Fernando Valley, call me at 818-960-3501 or visit seannhomes.com. Let’s look at your specific numbers and build a plan around them.
*This blog is for informational purposes only and is not tax advice. Consult a qualified tax professional regarding your specific situation.*
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