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MLB Finalizes 2025 Luxury-Tax Bills as Dodgers Set Record $169.4 Million

The finalized totals sharpen focus on spending rules before 2026 labor negotiations.

Overview

  • The Dodgers’ competitive-balance-tax payroll was a record $417.3 million, producing the largest tax payment in MLB history at $169.4 million.
  • MLB will collect about $402.6 million in taxes from nine teams; top payers were the Dodgers ($169.4M), Mets ($91.6M), Yankees ($61.8M) and Phillies ($56.1M).
  • Crossing the third tier triggered draft penalties, with the Dodgers, Mets, Yankees, Phillies and Blue Jays set to see their top 2026 picks drop 10 slots.
  • Tax payments are due January 21, 2026, with proceeds funding player benefits, retirement accounts and a supplemental commissioner’s fund as outlined in the CBA.
  • The Dodgers’ combined 2025 payroll and tax topped $586 million, and their tax bill alone exceeded the CBT payrolls of 12 clubs.