Dodgers News: 2025 Dodgers Payroll Sets New Luxury Tax Record
The Dodgers continue to set records for the 2025 season, this time in luxury tax payroll
LOS ANGELES, CA—While some argue that a World Series victory can’t be assigned a price, the Los Angeles Dodgers are a prime example for estimating the cost of achieving back-to-back championships.
As 2025 draws to a close, Major League Baseball has revealed the official payroll figures for teams and the luxury tax penalties for those that exceeded the competitive balance tax threshold.
The CBT threshold for the 2025 season was set at a record $241 million, but the Dodgers exceeded it, ending the season with a payroll of $417.3 million.
Because the Dodgers have exceeded the luxury tax threshold for at least three straight seasons—now reaching five consecutive years—and their total surpassed the limit, they incurred extra surcharges.
The Dodgers paid a 50% rate on their initial $20 million above the threshold, a 62% rate on the next $20 million, a 95% rate from $281 million to $301 million, and a 110% rate on any amount exceeding that.
Overall, the Dodgers’ payroll for the World Series was $586.7 million, including luxury tax. However, the actual total varies slightly because of how luxury tax hits are calculated on contracts.
According to Ronald Blum of The Associated Press, the Dodgers faced a record luxury tax of nearly $170 million.
This marks the tenth time the Dodgers have exceeded the luxury tax threshold since the Guggenheim Baseball Management Group took control in 2012.
The Dodgers spent $456 million on their 2024 World Series, raising their total expenditure in two championship seasons to $1.04 billion.
Furthermore, eight additional teams joined the Dodgers in paying a luxury tax for the second straight season, matching the record for the most MLB clubs to do so.
The Dodgers were joined by the New York Mets, New York Yankees, Philadelphia Phillies, Toronto Blue Jays, San Diego Padres, Boston Red Sox, Houston Astros, and Texas Rangers. Among these, only the Dodgers paid more than $92 million in taxes.
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