The Dodgers’ payroll looks overwhelming at first glance, and that’s because by MLB’s accounting, it is.
For the 2026 season, the Dodgers’ competitive balance tax payroll is $413,597,413, according to Spotrac. That figure sits $169,597,413 over MLB’s $244 million luxury tax threshold, pushing the team beyond all four penalty tiers at $244 million, $264 million, $284 million and $304 million.
As a third-time luxury tax payor, the Dodgers are subject to the league’s highest tax rates. The result is a luxury tax bill of $161,957,154, the largest in baseball history.
That tax payroll number is driven almost entirely by the top of the roster:
Kyle Tucker carries the largest tax hit on the team at $57.18 millionShohei Ohtani follows with $46.08 million toward the taxBlake Snell’s next at $31.3 million Mookie Betts is at $30.42 million Tyler Glasnow at $27.27 millionYoshinobu Yamamoto at $27.08 million
In total, the Dodgers have $387,950,747 in guaranteed contracts on the books for 2026 before arbitration and minimum-salary players are added.
Arbitration salaries account for $8.5 million, while $9.36 million is allocated to pre-arbitration players. The team also owes Chris Taylor a $4 million buyout, according to FanGraphs.
All of that combines to produce the massive tax payroll figure — but it does not reflect what the Dodgers are actually paying in cash that season.
The Dodgers’ actual 2026 cash payroll is $196,782,500, which ranks 10th in MLB. The gap between cash spending and tax payroll is created by extensive use of deferred money.
Ohtani’s contract illustrates the strategy clearly. While his deal counts for $46.08 million against the luxury tax in 2026, he is paid $2 million in cash that year, with the remainder deferred into the future.
The Dodgers have effectively accepted the luxury tax as a cost of doing business.
By structuring contracts this way, they are able to field a roster with multiple MVP- and Cy Young–level players while keeping annual cash expenditures far lower than the tax figures suggest.
Some contracts will roll off in future seasons, but with Ohtani signed through 2033 and Yamamoto through 2035, the Dodgers are built to live above the luxury tax line for years.
The numbers make one thing clear: the Dodgers aren’t just spending big — they’re spending with precision.