"The final calculations for the luxury tax bill of all 30 MLB teams have been revealed recently, with the Los Angeles Dodgers paying a record amount of $169.4 million in penalties for the 2025 season. The competitive balance tax (CBT) threshold continued its growth for the 2025 MLB season with a new high of $241 million, but the Dodgers far surpassed it with a payroll of $417.3 million."
"Nine teams paying matches the record set year and the $402.6 million tax total topped the previous high of $311.3 million last year. Tax money is due to MLB by Jan. 21. The New York Mets, New York Yankees, Philadelphia Phillies, Toronto Blue Jays, San Diego Padres, Boston Red Sox, Texas Rangers, Houston Astros also exceeded the luxury tax threshold in 2025."
The 2025 competitive balance tax (CBT) threshold rose to $241 million while the Los Angeles Dodgers posted a $417.3 million payroll and incurred a record $169.4 million in luxury tax penalties. The Dodgers faced additional surcharges for exceeding the threshold for at least three consecutive seasons and for the amount over the CBT. Nine teams paid luxury tax in 2025, producing a league total of $402.6 million, above 2024's $311.3 million. Teams over the threshold included the Mets, Yankees, Phillies, Blue Jays, Padres, Red Sox, Rangers, and Astros. The CBT for 2026 increased to $244 million, and Edwin D23az's contract adds about $21 million to the Dodgers' 2026 payroll. The Dodgers last remained below the threshold in 2020 with a payroll near $204 million; their lowest luxury-tax payment in the past five seasons was about $19 million in 2023 when payroll exceeded the $233 million CBT by roughly $35 million.
Read at Dodger Blue
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