The Atlanta Braves have been doing a great job of spending money to improve their team for the 2026 season. The front office meant it when they stated they'd like to become a top-five payroll. Fans are happy to see things are moving in the right direction. The desire to stay below the luxury tax for a third-straight year in 2025 clearly kept them from addressing needs. However, that has changed as the Braves are already over the payroll threshold for 2026.
Each year, teams have a predetermined payroll threshold that is subject to a Competitive Balance Tax, or as it is commonly known, a luxury tax. This threshold is determined by the average annual value of each player's contract on the 40-man roster, plus any player benefits.
The 2026 threshold is set at $244 million, and this will be a year Atlanta has exceeded the threshold unless they find a way to shed a bunch of salary before the trade deadline this year. The Braves will owe a 20% tax on all overages. According to the figures from Spotrac, Atlanta's projected tax bill for the next season is going to be on $250,045,000.
Braves' are already among the top spenders, but may have a little more payroll room if they push it
So right now the Braves are sitting just $6 million above the threshold. Atlanta would also be subject to a surcharge if they exceed the base $244 million by a certain amount. There’s also a surcharge threshold for clubs that exceed the base threshold by $20 million or more. With what the Braves have left to do this offseason (adding a starting pitcher and fortifying the bullpen), they'll more than likely reach $264 million before it is all said and done.
Teams have a 12% surcharge applied when they spend between $20 to $40 million above the threshold. That surcharge increases to 42.5% when any team is $40 to $60 million over, and 60% when the amount is $60 million or more above.
That's something Atlanta has to consider when making their decisions. There's also the stipulation that teams that are $40 million above the threshold have their highest selection in the MLB Draft moved back 10 places unless the pick falls in the top six. In that case, the second-highest selection is moved back 10 places.
With the luxury tax already being almost $10 million above the threshold, there's hope the Braves will be able to put together a formidable roster.