For example, the payroll cap for 2012 and 2013 was $178 million, while the remaining 3 seasons from 2014 to 2016 total $189 million respectively. The tax is applied to any amount over the paycheck limit. First time offenders are taxed at a rate of 17.5%, a second offense carries a 30% fine, a third time 40% and finally a maximum rate of 50% is applied to anyone who exceeds the limit three or more times. However, avoiding the luxury tax for 1 year resets the team's tax rate. The New York Yankees, the team many see as the target of the tax, have paid a luxury tax every year since it was founded. However, the Yankees aren't the only team that has surpassed him more than once over the years, teams like the Red Sox, Tigers, and Dodgers have done so as well. Since the luxury tax went into effect, the Yankees have paid a total of more than that $250