Los Angeles Mansion Tax Revenue Falls Short
Los Angeles Mansion Tax Revenue So Far vs. Forecasts Although the Los Angeles mansion tax crossed $1 billion in total collections by January 2026, the pace has remained far below early promises. City reports $944 million in 30 months, about $378 million a year. That matches $280 million to $350 million estimates and trails lofty forecasts. The tax applies to sales of $5 million or more, with rates of 4% to 5.5% . Other states are facing similar pushback as outdated thresholds pull more middle-class homes into luxury-style taxes. Revenue Reality Supporters projected $600 million to $1.1 billion yearly, or $1.5 billion over 30 months. Revenue lagged in early 2023, then steadied, as the council set $424.8 million for 2025 to 26. Peer comparisons and Public perception Peer comparisons with other big city housing funds underscore the gap. Public perception has shifted as $5 million-plus sales fell 55 percent, transactions dropped 38 percent, and luxury remodels rose 46 percent. Those trend...