The New York Yankees and the Los Angeles Dodgers are the only two teams that will have to pay for their high-spending ways this year. The Yankees will pay $28MM in luxury tax money while the Dodgers will have to fork over $11.4MM.
The luxury tax threshold this season was $178MM and the Yankees, as is their custom, blew right past it with a payroll of over $237MM. The Dodgers’ payroll was actually more than the Yankees, clocking in at $243MM. But New York pays a higher penalty, a rate of 50% on the overage, because they have exceeded the limit for at least four consecutive years.
For a breakdown of MLB’s luxury tax including historical figures, which are dominated by the Yankees, see this explanation on Sportingcharts.com.