Cody Bellinger will cost the Yankees more in the luxury tax in 2026 than Aaron Judge — a lot more.
There are complicated rules in the collective bargaining agreement that have an almost poison pill-like impact for the Yankees when it comes to Bellinger.
For example, whether Bellinger re-signed or not, the Yankees would be charged $3.8 million for 2026 payroll in a “true up” to his now-completed contract. And because of the front-loaded form plus opt-outs in his recently signed five-year, $162.5 million deal, a valley charge provision means his 2026 salary will be $44.75 million on the luxury tax payroll. So Bellinger will total $48.55 million for luxury tax purposes for the 2026 season. Judge – the highest-paid Yankee ever in total dollars and annual value – costs $40 million every year for luxury tax purposes.
The Bellinger contract projects the Yankees’ payroll bill before luxury taxes to exceed $330 million for the 2026 season, which would be a record for the franchise. Hal Steinbrenner has consistently said he wants to get the payroll below $300 million, but even with a trade for, say, Jazz Chisholm Jr. ($10.2 million) they wouldn’t come close to that level. The Yankees’ 2025 luxury tax payroll was a franchise record of approximately $320 million, which cost an additional $61.8 million in taxes.
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