Luxury Tax Calculator

Calculate luxury tax penalties for exceeding payroll thresholds

Team Payroll ($M)

Tax Threshold ($M)

Consecutive Years Over

League

About Luxury Tax

Luxury taxes penalize teams that exceed payroll thresholds. MLB uses a Competitive Balance Tax with progressive rates that increase with repeat violations. The NBA has a steeper luxury tax with dollar-for-dollar penalties that can reach 4x or more for large overages.