Saturday, October 17, 2026

Record-Tying 6 MLB Teams Could Be Hit With Luxury Tax

  • Six MLB teams are on pace to get hit with the league’s luxury tax, for only the second time in history.
  • The New York Mets boast the highest payroll currently, at $273.9 million.
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Six MLB teams are on pace to get hit with the league’s luxury tax, for only the second time in history. MLB’s top spender, as has often been the case, is a New York team — but not the Yankees.

The New York Mets boast the league’s top payroll ($273.9M) as of Aug. 31, according to data reported by The Associated Press, and are projected to owe a league-high luxury tax of $29.9 million.

Rounding out the other six:

  • Los Angeles Dodgers: $267.2M, ($29.4M tax)
  • New York Yankees: $254.4M, ($9.4M tax)
  • Philadelphia Phillies: $243M, ($2.6M tax)
  • Boston Red Sox $234.5M, ($900K tax)
  • San Diego Padres: $233M, ($800K tax)

“First-time offenders pay 20% on the amount above the first threshold, 32% above the second, 62.5% above the third and 80% above the fourth,” according to the AP.

The Mets haven’t seen a record payroll since 1989. But since owner Steve Cohen purchased the team after the 2020 season concluded, spending has continued to increase. The team doesn’t want the money to go to waste — it’s vying for its first World Series title since 1986. 

Of the six teams, only Boston is projected to miss the playoffs.

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