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In fact, federal taxes owed by professional baseball, football, and basketball players will exceed $3 billion in 2013, according to tax experts who specialize in representing athletes. And, like every other U.S. taxpayer, their bill is due today. Thatâs $3 billion of the $2.5 trillion paid in federal taxes by all Americans, contributed by a select but paltry work force of about 3,000. On average, every MLB, NFL and NBA player pays $1 million in federal taxes.
There is no salary cap in MLB. There is however, a luxury tax system which makes it more expensive for a team to carry a high payroll. How it works is that there is a threshold ($189M in 2015); if a team's payroll is above that limit, a tax of 17.5% of the amount they're over by is paid to the league as a fine.