"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. The Dodgers were hit with additional surcharges as a result of going over the luxury tax threshold for at least three straight seasons and their total over the CBT threshold."
"In addition to the Dodgers, eight other teams payed luxury tax fees for the 2025 season. While this tied the amount seen in 2024, the total amount of taxes payed was larger in 2025, according to Ronald Blum of the Associated Press: 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 CBT for 2026 has grew once again to $244 million and the Dodgers are projected to be well over the limit once again despite a sizable amount of money coming off their books after last season ended. Edwin Díaz's record-breaking contract alone adds back around $21 million in payroll for 2026. Dodgers luxury tax history Prior to their absorbent tax bills the past two seasons, the Dodgers' lowest payment in the last five seasons actually came in 2023."
CBT threshold rose to $241 million for 2025. The Los Angeles Dodgers had a $417.3 million payroll and paid a record $169.4 million in luxury tax penalties, including repeat-offender surcharges. Nine teams exceeded the CBT in 2025, producing a record $402.6 million in total luxury taxes, topping 2024's $311.3 million; tax payments are due to MLB by Jan. 21. Teams over the threshold included the Mets, Yankees, Phillies, Blue Jays, Padres, Red Sox, Rangers and Astros. The CBT increases to $244 million for 2026, and the Dodgers are projected to exceed it again, with Edwin Díaz's contract adding about $21 million.
Read at Dodger Blue
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