Report: Yankees to pay record $29 million luxury tax
The team currently has a $236.2 million payroll for luxury tax purposes and must pay a 50% tax over the $178 million threshold for being a repeat offender of tax rules.
The Houston Astros, who have the majors worst record, have a payroll of about $21.1 million.
The Los Angeles Dodgers payroll, by comparison, is $234.5 million for this season. The Boston Red Sox ($173.3 million), Philadelphia Phillies ($163.5 million) and Detroit Tigers ($152.9 million) are the only other teams with payrolls over $150 million.
The Dodgers will be taxed at 17.5%, paying a tax of about $9.9 million to MLB's central fund.
"We are mindful of the tax,'' Dodgers president Stan Kasten said. "We understand the impact it will be this year and in the future. But I think over time, we will become a team that doesn't pay tax.
"We had quite a significant rebuilding project in front of us, and that is what we turned our attention to. Over time, as we start developing our own homegrown players, we expect our payroll to go down.''