2025 Major League Baseball Luxury Tax Payrolls List

Figures are for 40-man rosters and include the average annual values of contracts and $18,206,789 per club for benefits and extended benefits, which include items such as health and pension benefits; club medical costs; insurance; workman’s compensation, payroll, unemployment and Social Security taxes; spring training allowances; meal and tip money; All-Star game expenses; travel and moving expenses; postseason pay; and college scholarships. Also included is $1,666,667 per team for the pre-arbitration bonus pool.

Salaries include earned incentive bonuses, non-cash compensation, buyouts of unexercised options and cash transactions. In some cases, parts of salaries that are deferred are discounted to reflect present-day values.

The luxury tax is assessed starting on the amount above $241 million.

The Los Angeles Dodgers, New York Mets, New York Yankees, Philadelphia and Texas exceeded the threshold for the third or more consecutive season and pay at a 50% rate on the amount over $241 million but less than $261 million, a 62% rate on the amount over $261 million but less than $281 million, a 95% rate on the amount over $281 million but less than $301 million and a 110% rate on the amount above $301 million.

Houston pays a 30% rate on the amount over $241 million.

Boston, San Diego and Toronto pay a 20% rate on the amount over $241 million.

Boston received a $75,000 credit under Article XXIII of the Basic Agreement.

This article was generated from an automated news agency feed without modifications to text.