Major League Baseball has finalized its competitive balance tax (CBT) figures for the 2025 season, and while the Texas Rangers are far from the league’s biggest spenders, they still find themselves on the luxury tax ledger for the third consecutive year.
That distinction places the Rangers in a unique position: a franchise that has pushed aggressively to remain competitive, yet has largely managed to avoid the massive financial burdens shouldered by clubs like the Dodgers or Mets.
According to finalized numbers reported by the Associated Press, the Rangers exceeded the $241 million base CBT threshold by a relatively slim margin, finishing just $190,000 over the line.
While that figure pales in comparison to the nine-figure overages posted by the Dodgers, Mets, Yankees, and Phillies, it still carries significance. Because Texas has now surpassed the threshold in at least three straight seasons, the club is subject to the highest tier of escalating penalties, meaning even a small overage comes with an added financial sting.
After investing heavily in recent seasons to build a championship-caliber roster, Texas entered 2025 intent on maintaining flexibility while keeping its core intact. That approach resulted in a payroll that hovered right around the tax line, ultimately nudging just past it once final calculations were completed.
The narrow margin suggests the front office was clearly mindful of the threshold, even if avoiding it entirely proved difficult.
Unlike perennial big-market spenders, the Rangers have not treated the CBT as an open-ended expense. Their presence on the list of tax-paying teams is more a byproduct of sustained competitiveness than an aggressive, spend-at-all-costs philosophy.
Still, being grouped alongside repeat offenders such as the Dodgers, Mets, Yankees, and Phillies underscores how dramatically the Rangers’ financial profile has changed in recent years.
League-wide, nine teams exceeded the CBT threshold in 2025, and MLB will collect just under $403 million in total tax payments.
Teams are required to make those payments by January 21, with the funds allocated toward player benefits, retirement accounts, and revenue sharing. While the Rangers’ contribution represents only a fraction of that total, it still feeds into a system designed to support league-wide financial balance.
From a strategic standpoint, the Rangers’ minimal overage could have implications moving forward. Staying just barely above the threshold keeps the penalties manageable, but it also raises questions about future payroll planning.
If Texas can dip back under the line in a coming season, it would reset its tax status and reduce penalties down the road — a potentially appealing goal as the roster evolves.
Ultimately, the Rangers’ 2025 luxury tax bill tells a story of a franchise that has embraced spending to compete, but without fully abandoning fiscal discipline.
While they may technically rank among MLB’s tax-paying teams, Texas stands apart as one of the most restrained offenders, signaling a front office that remains keenly aware of both the competitive and financial landscapes.
