Baseball Luxury Tax
"Competitive Balance Tax"

Baseball Millionaires

2007 Luxury Tax

Checks for the competitive-balance tax, as it is formally known, are due at the commissioner's office by Jan. 31.
NY's payroll was $207.7 mil. & Boston was second at $163.1 mil. for luxury tax purposes, which uses the average annual values of contracts for 40-man rosters and adds benefits. Both teams pay at a 40 % rate for the amount over the tax threshold, which rises from $148 mil. this year to $155 mil. next season.

NY Yankees: $23.88 million
Boston Red Sox: $6.06 million

2006 Luxury Tax
Length: The agreement starts with the 2002 season and runs through Dec. 19, 2006.

NY Yankees: $26,000,000
Boston Red Sox: $497,549

2005 Luxury Tax

NY Yankees: $34,053,787
Boston Red Sox: $4,156,476

Checks for the competitive-balance tax, as it is formally known, are due at the commissioner's office by Jan. 31. Because they exceeded the payroll threshold for the third time under the labor contract that began after the 2002 season, the Yankees were taxed at a 40 percent rate on the amount above $128 million. Boston, which topped the threshold for the second time, was taxed at a 30 percent rate.

2004 Luxury Tax

NY Yankees: $25,026,352 - revised to $30,637,531 (4/05)
Boston Red Sox: $3,155,234
Anaheim Angles: $927,059
LA Angles of Anaheim

Amounts are due in the commissioners office by 1/31/2004. In 2003, the first year of the new luxury tax, the Yankees were the only team to pay. Because they exceeded the threshold a second time, the Yankees were taxed at a rate of 30 percent for the amount they were over. Boston and Anaheim were taxed at a 22.5 percent rate. If the Yankees go over the 2005 threshold of $128 million they would be taxed at a 40 percent rate.

2003 Luxury Tax
The only team to pay the 2003 luxury tax is the NY Yankees in the amount of $11,798,357.