The California mansion tax isn’t a single statewide law. It’s a patchwork of local transfer taxes in a handful of charter cities, most prominently Los Angeles, San Francisco, Santa Monica, Culver City, and San Jose, that add roughly 0.75% to 6% of the sale price on top of California’s 0.11% base documentary transfer tax when high-value property changes hands. What you owe depends entirely on where the property sits and how much it sells for.
What the Tax Actually Is
The mansion tax is a one-time transfer tax triggered when property changes hands, not an annual property tax. It applies to all types of real property, including commercial buildings and apartment complexes, not only single-family homes. Each city sets its own thresholds and rates.
In most of these cities the rate applies to the entire sale price once a threshold is crossed, not just the portion above it. Sell for a dollar over the cutoff and the higher rate hits the full amount. Culver City is the exception: it uses marginal brackets, so each dollar is taxed at the rate for the bracket it falls into, the way federal income tax works.
Before any mansion tax kicks in, every California property sale carries a base documentary transfer tax of $1.10 per $1,000, which works out to 0.11%.1California Legislative Information. California Revenue and Taxation Code RTC 11911 Charter cities can set a higher base rate and often do. Los Angeles charges a 0.45% base rate on all property transfers regardless of value.2Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ The mansion tax rates below stack on top of whichever base rate applies locally.
Rates by City
Los Angeles (Measure ULA)
Los Angeles voters approved Measure ULA in November 2022, effective April 1, 2023. Thresholds adjust annually for inflation. For transactions closing after June 30, 2025:2Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
- Over $5.3 million but under $10.6 million: 4% ULA tax on the full sale price
- $10.6 million or more: 5.5% ULA tax on the full sale price
Both tiers sit on top of LA’s 0.45% base transfer tax. A $6 million sale in Los Angeles would owe $240,000 in ULA tax plus $27,000 in base transfer tax, for a combined $267,000. Because the thresholds adjust each year with the Chained Consumer Price Index, cutoffs for transactions closing after June 30, 2026, hadn’t been published at the time of writing. Check the Los Angeles Office of Finance before closing.
San Francisco
San Francisco applies a tiered transfer tax that escalates sharply for high-value transactions:3SF.gov. Transfer Tax
- $5 million to under $10 million: 2.25%
- $10 million to under $25 million: 5.5%
- $25 million or more: 6%
As in Los Angeles, the rate applies to the entire consideration once the threshold is crossed, not just the amount above it.
Santa Monica (Measure GS)
Santa Monica voters passed Measure GS in November 2022, adding a high-value tier effective March 1, 2023:4City of Santa Monica. General Election 2022 – Measure GS
- Under $5 million: 0.3%
- $5 million to under $8 million: 0.6%
- $8 million or more: 5.6%
The jump from 0.6% to 5.6% at $8 million is a cliff. A sale at $7.9 million would owe roughly $47,400 in transfer tax; a sale at $8.1 million would owe about $453,600. Worth keeping in mind during price negotiations.
Culver City (Measure RE)
Culver City’s Measure RE, approved in November 2020 and effective April 1, 2021, replaced the city’s old flat 0.45% transfer tax with a marginal bracket system. Each bracket’s rate applies only to the dollars in that range:5City of Culver City. Real Property Transfer Tax
- Up to $1,499,999: 0.45%
- $1,500,000 to $2,999,999: 1.5% on the amount in this range
- $3,000,000 to $9,999,999: 3% on the amount in this range
- $10,000,000 and above: 4% on the amount in this range
On a $4 million sale you’d owe 0.45% on the first $1,499,999, then 1.5% on the next $1,500,000, then 3% on the remaining $1,000,001. The marginal structure makes the effective rate meaningfully lower than a flat top-bracket rate would produce.
San Jose (Measure E)
San Jose’s Measure E took effect July 1, 2020. The threshold adjusts for inflation, and as of July 1, 2025, the tax applies to sales exceeding $2,300,000. Transfers at or below that are exempt from this additional tax. Above the threshold, rates apply to the full sale price:6Office of the County Clerk-Recorder. Measure E
- Over $2.3 million to $5 million: 0.75%
- Over $5 million to $10 million: 1%
- Over $10 million: 1.5%
San Jose’s rates are far lower than LA’s or San Francisco’s, but they kick in at a much lower price point, so they capture a meaningful share of the city’s real estate market rather than just ultra-luxury properties.
Who Pays and When
There’s no uniform rule across California for which party pays. In Los Angeles, Measure ULA doesn’t specify buyer or seller, leaving it to negotiation. In Culver City, either party can pay, but if neither does, both are jointly liable to the city.5City of Culver City. Real Property Transfer Tax Local custom in much of California puts the transfer tax on the seller, but custom isn’t a legal requirement, and in transactions of this size the allocation is almost always spelled out in the purchase agreement.
The tax is collected at close of escrow. The escrow company calculates the amount and remits it to the local government before the deed is recorded.
Common Exemptions
Each city defines its own exemptions. In Los Angeles, Measure ULA exempts sales to governmental entities and to established 501(c)(3) nonprofits that have held tax-exempt status for at least ten years and have less than $1 billion in assets. Nonprofits with a track record in affordable housing development or management can also qualify, including limited partnerships where a nonprofit or community land trust serves as the general partner.7LAHD – City of Los Angeles. ULA Exemption Eligibility Guidelines
San Jose exempts transfers below its inflation-adjusted threshold entirely.6Office of the County Clerk-Recorder. Measure E Standard documentary transfer tax exemptions under state law also apply, covering transfers between spouses, certain trust transfers, and other categories. If you think an exemption might apply to your transaction, raise it with your escrow officer or real estate attorney before closing.
Federal Tax Treatment
Transfer taxes on the sale of a personal home aren’t deductible on your federal income tax return.8Internal Revenue Service. Tax Information for Homeowners The IRS does treat them as part of the cost equation in two ways. If you pay transfer taxes as the buyer, you can add them to the property’s cost basis, which reduces your taxable capital gain when you eventually sell. If you pay them as the seller, they count as selling expenses that reduce the amount realized on the sale and therefore any capital gain.9Internal Revenue Service. Property (Basis, Sale of Home, Etc.)
On a $10.6 million sale in Los Angeles with a combined 5.95% effective transfer tax rate, that’s over $630,000. Not a minor detail on your return.
A 2026 Ballot Measure That Could Wipe These Taxes Out
The Howard Jarvis Taxpayers Association is backing a constitutional amendment on the November 2026 ballot that would prohibit charter cities from approving real estate transfer taxes beyond the standard 0.11% base rate. If it passes, it wouldn’t just block future mansion taxes. It would overturn every existing voter-approved transfer tax that exceeds the cap, including Measure ULA, Measure GS, and the others discussed above, two years after enactment.10Ballotpedia. California Two-Thirds Vote Requirement for Special Taxes and Charter City Real Estate Transfer Tax Prohibition Initiative (2026)
A prior version was struck from the 2024 ballot by the California Supreme Court, which ruled it proposed too sweeping a change to be enacted through a ballot initiative. The 2026 version has been drafted more narrowly to avoid that problem. Whether it qualifies for the ballot and how voters respond will decide whether California’s mansion taxes survive beyond 2028.