2020 Luxury Tax Payrolls

NEW YORK (AP) — Final 2020 payrolls for the 30 major league teams for purposes of the luxury tax, as defined by baseball's collective bargaining agreement and sent to clubs by the commissioner's office.

Figures are for 40-man rosters and include the average annual values of contracts and $15,002,327 per club for benefits and extended benefits, which include items such as health and pension benefits; club medical costs; insurance; workman's compensation, payroll, unemployment and Social Security taxes; spring training allowances; meal and tip money; All-Star game expenses; travel and moving expenses; postseason pay; and college scholarships.

Each team was given a base COVID credit $1.5 million, and individual club COVID credits ranged from $0 to $5.25 million, accrued at the rate of $600,000 for each day on the major league COVID injured list and $91,800 for each day on the minor league COVID injured list if optioned at the time.

Salaries include earned incentive bonuses, non-cash compensation, buyouts of unexercised options and cash transactions. In some cases, parts of salaries that are deferred are discounted to reflect present-day values.

The luxury tax was suspended for 2020 but would have been assessed on the amount above $208 million. Houston would have paid 20% on the amount over $208 million. The Chicago Cubs and New York Yankees, as teams that also were over the 2019 threshold, would have paid 30% on the amount over $208 million and 42% on the amount above $228 million.