Santa Monica's Measure GS transfer tax can materially affect what an apartment owner keeps from a sale. The $8 million threshold deserves particular attention because the higher City rate applies to the whole taxable value. See the City tax schedule.
Key takeaways
- Santa Monica applies one City rate to the whole taxable value, rather than marginal brackets.
- The County documentary transfer tax is separate.
- A tax threshold can materially change the seller's net; compare complete closing estimates.
- An apartment sale is not automatically exempt, and not every transfer is fully taxable.
How does Santa Monica's Measure GS tax work?
For an ordinary fully taxable transfer, one City rate applies to the whole taxable value. It is not a marginal tax only on the amount above a threshold.
The City's published tiers are $3 per $1,000 below $5,000,000; $6 per $1,000 from $5,000,000 to below $8,000,000; and $56 per $1,000 at $8,000,000 and above, as reviewed November 4, 2026.
Municipal Code section 6.96.020 defines the taxable consideration or value of the interest conveyed and addresses liens or encumbrances remaining at sale. Exemptions also exist. The price in an illustration is therefore not a substitute for the actual taxable-value review.
How much remains after transfer taxes?
These examples assume a fully taxable transfer, taxable value equal to the sale price and the seller paying both City and County transfer taxes. They show price less transfer taxes only, before commission, loan payoff and other closing items.
| Sale price | City and County tax | Price less these taxes |
|---|---|---|
| $4,900,000 | $20,090 | $4,879,910 |
| $4,999,999 | $20,500 | $4,979,499 |
| $5,000,000 | $35,500 | $4,964,500 |
| $7,900,000 | $56,090 | $7,843,910 |
| $7,999,999 | $56,800 | $7,943,199 |
| $8,000,000 | $456,800 | $7,543,200 |
| $8,100,000 | $462,510 | $7,637,490 |
At $8 million, the illustration includes $448,000 of City tax and $8,800 of County tax. The City schedule and County declaration provide the rates. Actual taxable value, exemptions and the contract can change the calculation.
Why does the $8 million threshold matter?
Illustrative example: Under the table's assumptions, a $7.9 million sale leaves $7,843,910 after City and County transfer taxes. A higher $8.1 million sale leaves $7,637,490: $206,420 less before debt, commission and other costs.
We compare actual offers and price scenarios with their tax allocation before recommending a negotiation strategy. A threshold matters to the owner's result, but it does not determine the building's market value or replace a full net-proceeds estimate.
Who pays the transfer tax?
The purchase contract can allocate transfer-tax costs between the parties. That allocation does not necessarily release a party from the City's statutory taxpayer liability. We account for the agreed allocation in the owner's net estimate, with escrow and tax advisers confirming the transaction's treatment.
Does Santa Monica’s mansion tax apply to apartment buildings?
Yes, transfer-tax rules can apply to apartment buildings; mansion tax is a common name, not a limitation to large single-family homes. There is no blanket apartment-sale exemption.
Some transfers qualify for exemptions or partial exemptions. The City describes qualifying affordable-housing transfers that can avoid higher City tiers while still owing the base City tax and County tax. Eligibility depends on the actual transfer, parties and property.
Does Los Angeles Measure ULA apply in Santa Monica?
No. Santa Monica is a separate municipality from the City of Los Angeles. Its own City transfer-tax rules apply, with County tax addressed separately. For property inside Los Angeles, use the separate Measure ULA guide; the two jurisdictions' thresholds should not be interchanged.
Frequently Asked Questions
Is the $8 million tax charged only on the amount above $8 million?
No. In the ordinary fully taxable calculation, the applicable City rate applies to the whole taxable value. That is why the threshold can change the seller's proceeds substantially.
Should I price just below $8 million?
Not from the tax table alone. The City tax schedule is one part of that decision. We evaluate the property's value and buyers' alternatives, then compare likely proceeds at the actual offers or price scenarios, including the contract's tax allocation.
Is Santa Monica's transfer tax the same as Los Angeles Measure ULA?
No. Santa Monica and the City of Los Angeles are different municipalities with different transfer-tax rules. Use Santa Monica's City tax and the separate County tax for a Santa Monica property.
Does a 1031 exchange remove the transfer tax?
A federal 1031 exchange does not by itself create an exemption from Santa Monica's transfer tax. Exchange planning and the property's transfer-tax calculation are separate parts of the owner's sale analysis.
Selling near a tax threshold?
We can compare your building's value and likely net at the prices you are considering. The Santa Monica selling guide covers the process, and the rent-control owners guide addresses the income and tenancy records.
Review Your Building's Value and Net
Sources
City of Santa Monica transfer-tax guidance; Municipal Code Chapter 6.96; and the Los Angeles County declaration. Rates reviewed November 4, 2026. The illustrations assume a fully taxable transfer and do not constitute a full seller net.