MLB pitcher chooses Diamondback over Padres because of California tax rates
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Merrill Kelly will once again wear an Arizona Diamondbacks uniform when the 2026 regular season begins.
Kelly, who entered the free agent market after logging 10 games with the Texas Rangers in 2025, agreed to a deal to return to the Diamondbacks.
Kelly spent the first seven years of his professional career with the Diamondbacks but revealed that he received an offer from the San Diego Padres this offseason. Kelly said his decision to turn down the Padres during free agency was based on California’s higher tax revenue compared to Arizona’s.
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Merrill Kelly (23) of the Texas Rangers plays during the game against the Miami Marlins at Globe Life Field on September 21, 2025 in Arlington, Texas. (Gunnar Word/Texas Rangers/Getty Images)
Kelly agreed to a two-year contract worth approximately $40 million with the Diamondbacks, according to ESPN. Although the Padres offered the same deal over three years instead of two, California’s 13% tax rate on earnings over $1 million proved a big difference.
“I don’t think it’s a secret how much money you get in your pocket when you go to California,” the right-hander told Foul Territory.
Kelly also has deep ties to Arizona, where he attended high school and played college baseball at Arizona State. He said finding a way back to Arizona was “a priority.”
Merrill Kelly (29) of the Arizona Diamondbacks watches before Game Six of the Championship Series against the Philadelphia Phillies at Citizens Bank Park on Oct. 23, 2023 in Philadelphia, Pennsylvania. (Rich Schultz/Getty Images)
Although Kelly says he loves San Diego, he wasn’t willing to give up a large portion of his salary to pay taxes. “I love San Diego,” Kelly said. “Like I said, they take a lot of money out of my pocket, man, the tax there is different.
“We have my numbers, a numbers guy, and it just makes sense to come home.”
Merrill Kelly (23) of the Texas Rangers looks on during the game against the Philadelphia Phillies at Globe Life Field on Aug. 8, 2025 in Arlington, Texas. (Bailey Orr/Texas Rangers/Getty Images)
Arizona’s personal income tax rate is approximately 2.5%. Kelly also joked that she prefers the desert to the beach in San Diego.
“It worked out great for us because that was our second choice,” said Kelly. “It was between here and San Diego going into the offseason. San Diego was actually the only place where, if we went somewhere, that would have been at the top of our list if we weren’t in Arizona. It’s like, ‘Okay, let’s just jump in and take a short, six-hour drive to San Diego.’
“But, yes, the desert is home. I guess we’re not sea people.”
In a statement sent to the California Post, the Padres said the team “does not comment on contract negotiations.”
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Acquired by the Rangers in July 2025, Kelly went 12-9 while splitting the season between Texas and Arizona.
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