Yankees Hit With $26.9 Million Luxury Tax

Not only did the New York Yankees fail to make the playoffs this season, they've been slapped with a $26.9 million luxury tax.

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Not only did the New York Yankees fail to make the playoffs this season, they've been slapped with a $26.9 million luxury tax by the commissioner's office. The luxury tax is to be paid by January 31.

According to Major League Baseball: "Having exceeded the payroll ceiling for several years, the Yankees were taxed at the compounded rate of 40 percent over the $155 million.

By comparison, the Tigers, the only other team hit with a luxury tax liability, surpassed the threshold for the first time and were taxed at a rate of 22.5 percent.

This newest assessment brings the Yankees' luxury tax total to $148.3 million in the six seasons since it was implemented. That figure represents 90 percent of the total paid into the kitty—with the only other contributions having been made by the Red Sox (a total of $13.9 million in four seasons) and the Angels ($927,000 in 2004).

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taxes
baseball
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New York
  • Kimberly Castro

    Kimberly Castro is the managing editor of Money and Health at U.S. News. You can follow her on Twitter, connect with her on LinkedIn, circle her on Google+, or email her at kcastro@usnews.com.

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