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.
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 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 Atlanta Braves, San Francisco Giants and Chicago Cubs got their payrolls below the threshold after making luxury tax payments in 2024.
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. With a payroll around $35 million over the $233 million CBT, the team only had to pay around $19 million in luxury tax fees.
The last time the Dodgers stayed below the luxury tax threshold was in 2020 with a payroll of around $204 million. It was the end of a three-season streak in which the organization did not make any luxury tax payments.
Have you subscribed to the Dodger Blue YouTube channel? Be sure to ring the notification bell to watch player interviews, participate in shows and giveaways, and stay up to date on all Dodgers news and rumors!
