Toronto Blue Jays among nine teams to cross luxury tax threshold in 2025

The Toronto Blue Jays were among a record-setting nine teams to cross the Competitive Balance Tax (CBT) threshold and pay luxury taxes in 2025. In total, the nine teams paid a combined $402.6MM in taxes this year.

That's more than $90MM more than last year's record of $311MM.

World Series Champions Los Angeles Dodgers contributed the most, paying a record-setting $169MM. The New York Mets were second at over $91MM.

Other teams to pay a luxury tax were the Yankees, Phillies, Padres, Red Sox, Astros, and Rangers.

The CBT, and consequently the luxury tax is determined by using each players Average Annual Value (AAV) of each player's contract who is on the 40-man roster, as well as any additional benefits such as incentives and signing bonuses.

It resets every year.

Teams are also subject to an increasing tax rate depending on how many consecutive years they have gone over, including 20% for overages the first year, 30% for overages the second year and 50% for overages the third year or more.

Unlike other major sports, Major League Baseball has no hard salary cap. While the calls for a spending cap have been getting louder over the years, especially with the Dodgers seemingly signing everybody, the CBT is the closest both the league and the Player's Union have gotten.

Taxes are due by January 21st.