MLB Luxury Tax Payrolls: Dodgers, Yankees, Mets Top List with Record Spending
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The 2025 Major League Baseball luxury tax payrolls have been revealed, with the Los Angeles Dodgers, New York Yankees, and New York Mets leading the pack. According to the commissioner's office, the teams' 40-man rosters have exceeded the threshold of $241 million, incurring varying tax rates. The top spenders face a 50% rate on the amount above $241 million but less than $261 million, increasing to 62% on the amount over $261 million but less than $281 million, 95% on the amount over $281 million but less than $301 million, and 110% on the amount above $301 million. Houston, however, pays a lower 30% rate on the amount over $241 million. Boston, San Diego, and Toronto pay a 20% rate on the amount over $241 million. Notably, the Boston Red Sox received a $75,000 credit under Article XXIII of the Basic Agreement. The figures include average annual contract values, benefits, and extended benefits, such as health and pension plans, club medical costs, and postseason pay. The luxury tax payrolls also account for pre-arbitration bonus pools and salaries, including earned incentives, non-cash compensation, and buyouts. This marks the third or more consecutive season that the Dodgers, Yankees, Mets, Philadelphia, and Texas have exceeded the threshold, incurring higher tax rates. The 2025 luxury tax payrolls serve as a benchmark for team spending and roster management in Major League Baseball.
