New York – The los angeles dodgers After this, a record luxury tax of $169.4 million will have to be paid. Winning their second consecutive World Series titleThat brings his two-year total to $272.4 million.
New York Mets Despite missing the 12-team playoff, paying a record-tying $91.6 million is the second-highest tax assessment among nine teams, with their taxes rising to $320.3 million over the past four years under high-spending owner Steve Cohen.
The Dodgers will pay the tax for the fifth consecutive season. Their total broke and surpassed the previous high of $103 million set last year New York Yankees Total taxes increased from $519.4 million to $514.2 million for the first time since the fines began in 2003.
Los Angeles’ $417.3 million tax payroll for 2023 tops the previous record of $374.7 million by the Mets. The Dodgers’ total included $949,244 in non-cash compensation for the two-way star. shohei ohtaniWhose contract calls for the use of a suite and an interpreter for games at Dodger Stadium.
The Mets’ $346.7 million payroll included $369,886 in non-cash compensation juan sotoThe contract specified that the team would pay for the use of his luxury suite, up to four premium tickets, and personal team security for the All-Star outfielder and his family. Soto finished with a record after-tax salary of $51,769,868 after earning $400,000 in award bonuses.
The Yankees are owed $61.8 million, according to figures finalized Friday by Major League Baseball and the players union and obtained by The Associated Press. Then came Philadelphia ($56.1 million), AL champion Toronto ($13.6 million), San Diego (just under $7 million), Boston and Houston (both about $1.5 million), and Texas (about $190,000).
The nine teams’ payouts match the record set in 2024, and the total tax of $402.6 million is above last year’s previous high of $311.3 million. The tax money is due to MLB by January 21.
By trimming the payroll with a series of deals before the 2024 trade deadline and falling below that year’s limit, the Blue Jays reset their tax rates and saved about $21 million this year. If they had exceeded the limit for the third consecutive season, their tax bill would have increased to approximately $34.65 million.
More than $1.63 billion has been taxed to 15 teams since the fines began in 2003.
The Dodgers, Mets, Yankees and Phillies have paid the tax in four consecutive seasons, with Philadelphia having the fourth-highest total tax since 2003 with $80.3 million, more than Boston with $53.2 million. San Diego ranked sixth with $49.5 million. The top four teams passed the fourth threshold level, added to their 2022 labor contracts and nicknamed the Cohen Tax in an initiative aimed at slowing their spending.
After paying the tax in consecutive years, Atlanta fell below the threshold by $234.8 million.
Among the teams that paid the tax, the Mets, Astros and Rangers missed the playoffs.
Miami had the lowest tax payroll at $86.9 million, about one-fifth of the Dodgers’ total, and chicago white sox Was ranked 29th with $91.8 million.
Total luxury tax payroll spending increased for the second consecutive season by 2.3% to $6.06 billion from $5.93 billion.
The tax payroll is calculated based on average annual values, which include bonuses earned for players on the 40-man roster, plus $17 million per team for benefits plus $1.67 million for each club’s share of the $50 million pool for pre-arbitration players starting in 2022. Deferred salary and deferred bonus payments are discounted from current values.
Because they owe the tax for three consecutive years, the Mets, Dodgers, Yankees and Phillies pay a 50% rate on the first $20 million above the $241 million threshold, a 62% rate on the next $20 million, a 95% rate on amounts from $281 million to $301 million, and a 110% rate on any amount above that.
Houston is in arrears for the second year in a row and pays 30% on more than $241 million.
Boston, San Diego and Toronto pay a 20% rate on amounts over $241 million but less than $261 million, a 32% rate on amounts over $261 million but less than $281 million and a 62.5% rate on amounts over $281 million but less than $301 million.
The first $3.5 million of the tax money in the labor contract is used to fund player benefits and the remaining 50% is used to fund player individual retirement accounts. The other 50% of what is left is dedicated to a supplemental commissioner’s discretionary fund that is distributed among teams that are eligible to receive revenue-sharing money and that have increased their non-media local revenues.
The starting cap for next year is $244 million. If the Dodgers, Mets, Yankees or Phillies leave, they would have to pay the highest tax rate, increasing to 110% for any amount over $304 million.
Regular payroll figures, including 2025 salaries, pro rata shares of signing bonuses and earned bonuses, have not yet been finalized.
