Philadelphia Phillies Get Their Payroll Tax Bill From Major League Baseball.

The Philadelphia Phillies’ bill is negligible in comparison to others, even though they spent slightly more than the tax threshold permits.

Major League Baseball tax will be paid by the Philadelphia Phillies for their payroll in 2023. But they’ll take this bill compared to their rivals in New York.

As reported by the Associated Press, the Phillies, one of eight teams that surpassed the $233 million Competitive Balance Tax threshold, will only have to pay $6.98 million in taxes for their payroll.

The Phillies have had to pay taxes for the past two years in a row. The Phillies set a franchise record with their nearly $255 million tax payroll, according to the Philadelphia Inquirer. They pay more tax because they are a repeat offender.

Despite its complexity, CBT operates on a tiered system:

Tier 1: a 20% premium for every dollar spent in the $233–$253 million range;

Tier 2: a 32% premium on each dollar spent in the $253–$273 million range;

Tier 3: a 62.5% tax added to every dollar spent in the $273–293 million range;

Tier 4: a surcharge of 80% on every dollar spent in excess of $293 million.