The Beverly Hills Tax Advantage: Why Location Matters More Than Ever

written by Marty Halfon

Beverly Hills avoids the mansion tax that’s costing LA sellers hundreds of thousands. When you’re buying or selling high-end real estate around here, a few miles can cost you a fortune. Beverly Hills and Los Angeles share a border, same weather, same lifestyle. But the Beverly Hills mansion tax doesn’t exist here—properties don’t pay LA’s Measure ULA. And that difference? It’s huge.

Why Beverly Hills Mansion Tax Doesn’t Apply Here

Measure ULA is a transfer tax that hits property sales inside the City of Los Angeles. Voters passed it in 2022. Here’s what it costs:

• 4% tax on properties between $5 million and $10 million
• 5.5% tax on properties over $10 million

Run the numbers. Sell a $10 million property in LA? You’re writing a check for $400,000 to the city. Got a $20 million estate? That’s $1.1 million walking out the door. This isn’t pocket change. This is money that should stay with you.

How Beverly Hills Avoids the Mansion Tax

Beverly Hills runs itself. We’ve got our own city government, our own rules. So the Beverly Hills mansion tax? It’s not a thing. Measure ULA doesn’t apply here. You pay the standard transfer taxes and you’re done.

Here’s what the Beverly Hills mansion tax situation means in real terms. Take two identical homes. One’s in Beverly Hills, one’s across the street in LA. The seller in LA could pay hundreds of thousands—maybe millions—more in taxes. Same house. Wildly different tax bill.

Why the Mansion Tax Matters to Beverly Hills  Homeowners

Long-Term Beverly Hills Homeowners — This Is Your Win

If you bought years ago and your home has appreciated, you’ve earned that equity. In Los Angeles, Measure ULA taxes the sale price, not what you originally paid. Sell for $12 million? That’s typically $660,000 in ULA tax. In Beverly Hills? No ULA-style seller tax. More of what you built stays with you.

Sellers Keep More — and That Changes Negotiating Power

Because there’s no ULA hit in Beverly Hills, sellers don’t have to “price in” an extra 4%–5.5% transfer tax. That can mean less pressure to discount, more flexibility on terms, and often a smoother path to a deal.

Buyers Feel It Too (Even If They Don’t Pay It)

In LA, sellers often try to offset ULA through pricing or tougher negotiations. In Beverly Hills, buyers know the market isn’t carrying that same built-in drag at the time of resale — and confidence matters in luxury.

Now Add the Big Catalyst: Massive Investment Over the Next Decade

Beverly Hills isn’t standing still. Major projects and infrastructure improvements are reshaping key corridors, bringing billions in investment and long-term value creation into a city that already has limited inventory and global demand. One example: the One Beverly Hills project has been widely reported in the multi-billion (even ~$10B) range.

That combination is powerful for homeowners:

• value growth from reinvestment and modernization, and

• no LA-style ULA tax when you sell, so you keep more of the upside.

What LA Says the Tax Funds

Measure ULA is intended to fund affordable housing production and homelessness prevention programs (often described broadly as housing and shelter solutions)

Beyond the Numbers

I’ve been in Beverly Hills for six decades. I’ve watched families grow up here and the city evolve—without losing what matters. We’re only five and a half square miles, just over 32,000 people. From PTAs to school events to Friday night lights at Beverly Hills High School, this is a real hometown—not just a famous zip code.

The tax advantage is real money. But the bigger advantage is control.

Beverly Hills governs itself. We make our own decisions, protect our standards, and reinvest locally in the things that hold value—public safety, schools, infrastructure, and quality of life. That’s why the mansion tax conversation is bigger than the headline. It’s not just a cost at sale—it’s part of what helps keep this market strong, services top-tier, and demand high.

Over the next 10 years, as the city grows and modernizes, that matters even more. Inventory stays limited. Demand stays global. And when owners choose to sell, they’re selling into a market backed by a reputation Beverly Hills works hard to protect.

If you’re looking at luxury real estate in this area, don’t ignore Measure ULA. It’s not fine print. It’s a massive financial factor that could save you hundreds of thousands. In this market, being on the Beverly Hills side of the line means real savings.

I’ve been here 60 years. I’ve seen what works and what doesn’t. Sometimes a few blocks don’t just change your address, they change how much money stays in your pocket.

When you buy a home in  Beverly Hills, you aren’t just buying a residence; you are investing in a tax-advantaged municipality.
This exemption often leads to smoother negotiations and higher long-term resale value compared to similar properties in L.A. City limits.

View the latest inventory and discover why this pocket is the choice for savvy luxury buyers: Explore Homes for Sale South of Wilshire in Beverly Hills

Rodeo Realty
Local Knowledge. Local Resident. Local Realtor.

Beverly Hills resident since 1962 | Real estate professional since 1979
DRE# 00669674 | 310-344-4465| [email protected]

Want to know more about how the Beverly Hills mansion tax exemption affects your specific situation? Let’s talk. Call me at 310-344-4465.