A Brentwood home that closes at $5,400,000 carries $24,300 in City of Los Angeles transfer tax. The same home at $5,500,000 carries $244,750. That extra $100,000 of price adds about $220,000 of city tax, because Measure ULA charges its rate on the entire price once a sale crosses the threshold. Only the dollars above the line would be taxed under a marginal design.
For closings after June 30, 2026, the Los Angeles Office of Finance sets the ULA thresholds at $5,400,000 and $10,900,000. Sales above $5.4 million and below $10.9 million pay 4%, and sales at $10.9 million or more pay 5.5%. The city's 0.45% base transfer tax sits on top, which brings the combined city rates to 4.45% and 5.95%. The prior fiscal year's thresholds were $5.3 million and $10.6 million. The 2022 measure started at $5 million and $10 million before the annual inflation adjustments.
Brentwood sits inside the City of Los Angeles, and its two closest luxury alternatives do not. That boundary shapes pricing, timing and inventory in 90049 more than any line item a buyer sees on a listing sheet.
The Dead Zone Between $5.4 Million and $5.63 Million
The Los Angeles County Recorder's transfer tax declaration adds a countywide tax of $1.10 per $1,000 everywhere in the county. With that included, the arithmetic for a seller who carries the transfer taxes works like this:
- At $5,400,000, county and city taxes total $30,240, and the seller keeps $5,369,760 before commissions and other costs.
- At $5,500,000, the total rises to $250,800, and the seller keeps $5,249,200.
- The seller's net does not return to the $5,400,000 level until the price reaches roughly $5,626,000.
Every price between $5.4 million and about $5.63 million leaves this seller with less than a sale at exactly $5.4 million. The second threshold works the same way at a larger scale. A sale at $10,899,000 carries about $497,000 in combined county and city tax. At $10,900,000 the total rises to about $660,500, and the seller does not recover the lower net until roughly $11.07 million.
These figures are illustrations of how the published rates work. Who bears the tax in a given deal comes down to the purchase contract. The break-even only applies to a seller who carries the full tax.
Citywide, the UCLA Lewis Center found that the incentive shows up in actual prices. Before ULA, City of Los Angeles sales showed little discontinuity at $5 million. After ULA, a large notch formed at that price, and it did not form in the rest of the county. That analysis covers the whole city rather than Brentwood alone. In the $5.4 million to $5.63 million band, an offer of $5.55 million and an offer of $5.4 million are much closer in value than they look.
The Same Price, Three Tax Bills
The jurisdictional line matters most for a buyer choosing between Brentwood and its neighbors. Beverly Hills is not among the cities that the County Recorder lists as charging an additional city transfer tax, so a Beverly Hills sale pays the county's $1.10 per $1,000 alone. Santa Monica's Measure GS uses its own tiers: $3 per $1,000 below $5 million, $6 per $1,000 from $5 million up to $8 million, and $56 per $1,000 at $8 million or more. Like ULA, each tier applies to the full price.
Combined county and city transfer tax at selected prices, using the rates above:
| Sale price | Brentwood, City of LA | Santa Monica | Beverly Hills |
|---|---|---|---|
| $5,000,000 | $28,000 | $35,500 | $5,500 |
| $5,500,000 | $250,800 | $39,050 | $6,050 |
| $8,000,000 | $364,800 | $456,800 | $8,800 |
| $12,000,000 | $727,200 | $685,200 | $13,200 |
The table changes a common assumption about the area. Between $5.4 million and $8 million, Brentwood carries by far the heaviest tax of the three. From $8 million up to $10.9 million, Santa Monica's top tier of 5.6% is higher than Brentwood's 4.45%. Above $10.9 million, Brentwood is higher again. Beverly Hills stays at about one-tenth of one percent at every price.
For an international buyer modeling a hold-and-exit plan, a Brentwood estate with a likely resale value of $9 million faces an exit cost that is lower than a comparable Santa Monica property and dozens of times higher than one in Beverly Hills. That gap belongs in the underwriting on the day of purchase. It is easy to miss until resale.
90049 Has Paid More Into ULA Than Any Other ZIP in the City
Brentwood's position shows in the city's own collection data. Through June 2026, ZIP code 90049 had generated $125.5 million in ULA revenue across 240 transactions, according to The Real Deal's reading of the city data. That is more than 90077, which covers Bel Air, Holmby Hills and Beverly Glen, at $98 million across 108 transactions. It is also more than Pacific Palisades' 90272, at $68.2 million across 147 single-family sales. On average, that comes to roughly $523,000 of ULA per taxed Brentwood transaction since the tax took effect in April 2023.
Citywide, ULA had raised more than $1.2 billion by July 2026, LAist reported.
The tax also changed how often sales above the threshold happen. A UCLA Lewis Center analysis published in April 2025 estimated a 49% to 55% reduction in above-threshold sales during ULA's first 20 months. The researchers cautioned that the evidence was not definitive. An earlier Los Angeles Times MLS comparison counted 366 City of Los Angeles single-family sales at $5 million or more in the year before ULA and 166 in the year after. Over the same period, it reported declines of 24% in Beverly Hills and 29% in Santa Monica. Both studies cover ULA's early period, and neither is a current read on 2026 volume. Taken together, they show luxury sales falling across the Westside and falling hardest inside the city line.
Where the Equity Goes When Owners Hold
If a large tax applies only when an owner sells, some owners will put their money into the house they already have. In July 2026, The Real Deal reported that Gesh Group, a luxury homebuilder that also remodels, had seen its work shift from 80% new development and 20% remodels before ULA to about 60% remodels and 40% new builds. The same piece cited ATTOM data showing a 46% increase in remodel permits for high-priced City of Los Angeles homes in the two years after ULA took effect, compared with 2018 and 2019.
For a Brentwood buyer, this explains why fewer upper-tier homes come to market than a reading of the neighborhood's wealth might suggest. For an owner, a renovation and a sale are now two answers to the same underwriting question. A remodel that lifts a home's value from $5.2 million to $5.5 million also moves its eventual sale into the dead zone. The size of the renovation and the threshold need to be modeled together.
Prop TE and the Brentwood Parcels It Could Reach
On November 3, 2026, City of Los Angeles voters will decide Proposition TE. The measure would give a one-time refund or exemption from ULA for residential properties damaged or destroyed in the Palisades Fire. To qualify, the sale has to be made by the person who owned the property when the fire began, between January 7, 2025 and January 6, 2030. Under the city's ballot pamphlet, the Department of Building and Safety would verify damage eligibility. The text is not limited to the Pacific Palisades neighborhood.
That matters in Brentwood. During the fire, ABC7 reported a structure burning in Mandeville Canyon. FOX 11 labeled a destroyed structure as a Brentwood home. A Brentwood property inside the city that was damaged in the fire and is sold by its January 2025 owner could fall within the measure, subject to the city's verification.
The sums involved are large. Burned Palisades lots have already crossed the threshold this year: 14948 Camarosa Drive sold in March for over $7 million, 906 Glenhaven Drive sold for $6.6 million in February, and 15300 Antioch Street traded for $5.9 million in July. In the city's ballot pamphlet, the City Administrative Officer estimates that Prop TE would reduce ULA revenue by $35 million to $66 million through January 2030. The Los Angeles Times voter guide cites a separate Housing Department estimate of $32 million a year, or about 6% of ULA revenue.
Mayor Karen Bass and Councilmember Traci Park are among those who signed the argument in favor. As of October 9, 2026, LAist reported that no official argument against the measure had been filed. LAist also noted a council concern that the exemption does not exclude LLCs, investors or owners of multiple properties.
If Prop TE passes, a qualifying fire-damaged Brentwood parcel would sell without the cliff, while an undamaged house on a nearby street would still carry it. Two properties at the same price could produce very different seller proceeds.
What Is Not on the Ballot
ULA itself is staying in place for every other sale. On July 1, 2026, the City Council voted 14 to 0 to shelve a proposed 10-year ULA exemption for newly built apartment buildings, which kept that broader change off the ballot. The Howard Jarvis Taxpayers Association-backed statewide initiative was withdrawn as part of a June 2026 deal, and CalMatters reported that the deal did not cap transfer taxes. Statewide Proposition 43 would require two-thirds approval for voter-initiated local special taxes approved after January 1, 2027. It does not repeal ULA or change it retroactively.
For a Brentwood seller without fire damage, the thresholds will continue to adjust each July, and the next set will be published by the Office of Finance.
Frequently Asked Questions
Does ULA apply to every home with a Brentwood address? ULA applies to property conveyed within the City of Los Angeles. A property's jurisdiction is set by its parcel, so it is worth confirming before you underwrite a deal.
Is the 4% charged only on the amount above $5.4 million? No. The Office of Finance applies the ULA rate to the full consideration once a sale is over the threshold, which is what creates the cliff.
When will the result of Prop TE be known? The vote is on November 3, 2026. The measure would apply to qualifying sales from January 7, 2025 through January 6, 2030, including a refund path for sales that have already closed.
If you are pricing a Brentwood home near $5.4 million or $10.9 million, or comparing a Brentwood purchase with Beverly Hills or Santa Monica on after-tax exit value, Hannah Laird Estates can model the threshold, the timing and the effect of Prop TE on your specific parcel. Schedule a private consultation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
