- The Los Angeles Dodgers have the highest tax payroll in the league at $396,027,413.
- The luxury tax threshold for 2026 is $244,000,000.
Baseball is a costly industry, and big-market owners seem willing to spend endlessly to secure top talent for their teams.
With mega-contracts becoming increasingly common and payrolls continuing to rise, some teams view the annual luxury tax threshold as a minor obstacle rather than a genuine deterrent to spending.
For the 2026 season, the tax threshold is $244,000,000. That means teams over that mark will have a tax bill after the season.
As a result, I’ve put together a table of MLB teams in order of their tax payroll for the 2026 season, based on the latest Spotrac data. This page will be updated throughout the year.
MLB Teams With the Highest Payrolls in 2026
| Rank | Team | 2026 Tax Payroll | 2025 Tax Payroll |
|---|---|---|---|
| 1 | Dodgers | $396,027,413 | $417,341,608 |
| 2 | Mets | $368,659,564 | $346,670,456 |
| 3 | Yankees | $325,819,200 | $319,522,564 |
| 4 | Phillies | $311,175,437 | $314,329,912 |
| 5 | Blue Jays | $301,070,459 | $286,135,551 |
| 6 | Padres | $262,093,678 | $270,351,396 |
| 7 | Red Sox | $256,125,051 | $248,859,139 |
| 8 | Cubs | $240,872,380 | $231,124,468 |
| 9 | Tigers | $236,675,605 | $188,162,067 |
| 10 | Braves | $233,858,333 | $234,800,685 |
| 11 | Astros | $228,204,994 | $245,991,459 |
| 12 | Giants | $222,424,836 | $225,357,291 |
| 13 | Orioles | $200,103,666 | $179,321,070 |
| 14 | Rangers | $200,101,666 | $241,380,966 |
| 15 | Angels | $187,032,689 | $221,351,742 |
| 16 | Diamondbacks | $186,334,166 | $216,099,333 |
| 17 | Royals | $181,905,858 | $180,975,889 |
| 18 | Mariners | $181,197,833 | $194,481,145 |
| 19 | Reds | $146,689,999 | $144,256,289 |
| 20 | Athletics | $131,917,856 | $118,141,841 |
| 21 | Brewers | $129,096,666 | $143,593,166 |
| 22 | Pirates | $120,720,416 | $108,626,221 |
| 23 | Cardinals | $119,767,221 | $153,544,320 |
| 24 | Twins | $119,234,380 | $141,653,295 |
| 25 | Rockies | $105,333,095 | $146,730,542 |
| 26 | White Sox | $105,206,666 | $91,811,137 |
| 27 | Rays | $105,196,666 | $103,438,452 |
| 28 | Nationals | $102,406,666 | $133,693,002 |
| 29 | Guardians | $94,747,768 | $128,186,431 |
| 30 | Marlins | $78,106,666 | $86,926,975 |
Which MLB Team had the Highest Payroll Last Season?
The Los Angeles Dodgers finished the 2025 campaign with the highest payroll in MLB on their way to winning the World Series. It marked the first year since 2022 that they had the highest payroll in the sport.
At this point in the preseason, the Dodgers’ payroll of $396,027,413 is the highest mark for the 2026 campaign.
Which MLB Teams Paid Luxury Tax in 2025?
As first reported by the Associated Press, nine teams exceeded the luxury tax during the 2025 season.
Here are the nine teams and their payments:
- Dodgers: $169,375,768
- Mets: $91,637,501
- Yankees: $61,774,820
- Phillies: $56,062,903
- Blue Jays: $13,609,719
- Padres: $6,992,447
- Astros: $1,497,438
- Red Sox: $1,496,828
- Rangers: $190,483
MLB Payroll Ranks of Past World Series Champions
| Year | Team | Total payroll | Payroll rank |
|---|---|---|---|
| 2025 | Dodgers | $350,024,106 | 1st |
| 2024 | Dodgers | $265,870,208 | 3rd |
| 2023 | Rangers | $251,332,754 | 4th |
| 2022 | Astros | $183,791,796 | 8th |
| 2021 | Braves | $151,393,755 | 11th |
| 2020 | Dodgers | $124,719,080 | 1st |
| 2019 | Nationals | $172,307,808 | 7th |
| 2018 | Red Sox | $227,398,860 | 1st |
| 2017 | Astros | $138,344,211 | 17th |
| 2016 | Cubs | $186,772,494 | 5th |
| 2015 | Royals | $126,529,835 | 13th |
| 2014 | Giants | $160,336,782 | 7th |
| 2013 | Red Sox | $172,084,264 | 3rd |
| 2012 | Giants | $137,043,205 | 7th |
| 2011 | Cardinals | $118,919,465 | 9th |
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