reporting and paying the "mansion tax" on the sale of their properties closing on or after April 1, 2023. The base transfer tax, meanwhile, can sometimes be negotiated between the buyer and seller. There are both County and City Transfer Taxes. Presently Los Angeles County Transfer tax is $1.1 per $1000 sales price, Los Angeles City $4.5 per $1000. To have a good idea of how to calculate the newer luxury mansion tax in LA, it’s important to understand how the base transfer tax works first, followed by the ULA tax. For a luxury home purchase over $5 million, the rate-based transfer tax would be calculated first, followed by the ULA measure tax, calculated based on percentage. The City of Los Angeles charges a base tax rate of $2.25 per every $500 of a property’s value on all properties. Based on that rate, a home worth $6.5 million would carry a $29,250 base transfer tax. The United to House LA tax would then be charged in addition to the base tax but is calculated based on the home's final sale price. As the measure currently stands, properties that sell for anywhere between $5 million and $10 million would be subject to an additional transfer tax of 4%. In comparison, properties that sell upwards of $10 million would carry a 5.5% ULA tax. The Mansion Tax applies to Los Angeles properties that sell for over $5 million. This includes single-family homes, condos, townhouses, and commercial properties. It's important to remember that the Los Angeles tax on luxury mansions and properties is calculated based on the final sale price. So, even if a property were listed for less than $5 million but sold for more due to a bidding war or any other reason, it would be subject to the Mansion Tax.
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