Red Sox hit with $3.4 million luxury tax

The Red Sox have to pay $3.4 million in luxury tax to Major League Baseball, up from $1.5 million last season. The Associated Press obtained the figures.

The only other team over the limit were the Yankees, who were hit with a $13.9 million bill. That’s down from $18 million in 2010.

The luxury tax is based on the payroll for the 40-man roster (average annual salary) plus medical benefits. The Sox were approximately $11 million over the threshold of $178 million. They were taxed at a rate of 30 percent because they also exceeded the limit in 2010.

If the Sox exceed the limit in 2012, which they almost certainly will, they would be taxed at a rate of 40 percent. The threshold will remain at $178 million for 2012 and 2013 under the terms of the new collective bargaining agreement.

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