NEWYou can now listen to Pakinomist articles!
Merrill Kelly will once again be wearing an Arizona Diamondbacks uniform when the 2026 regular season gets underway.
Kelly, who entered the free agent market after playing in 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 reject the Padres during free agency centered on California’s higher income tax rate compared to Arizona’s.
CLICK HERE FOR MORE SPORTS COVERAGE ON Pakinomist
Merrill Kelly (23) of the Texas Rangers pitches during a 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 an estimated $40 million with the Diamondbacks, according to ESPN. Although the Padres offered a comparable deal of three years instead of two, California’s 13% tax rate on income over $1 million presented an important difference.
“I don’t think it’s any secret how much money you get out of 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 always the priority.”
Merrill Kelly (29) of the Arizona Diamondbacks looks on before game six of the Championship Series against the Philadelphia Phillies at Citizens Bank Park on October 23, 2023 in Philadelphia, Pennsylvania. (Rich Schultz/Getty Images)
While Kelly said he is happy with San Diego, he was unwilling to sacrifice a significant portion of his salary for taxes. “I love San Diego,” Kelly said. “It’s just like I said, they’re taking too much money out of my pocket, man. The taxes over there are on another level.
“We had my numbers guy run the numbers and it just made more sense to come home.”
Merrill Kelly (23) of the Texas Rangers looks on during a game against the Philadelphia Phillies at Globe Life Field on August 8, 2025 in Arlington, Texas. (Bailey Orr/Texas Rangers/Getty Images)
Arizona’s income tax rate is about 2.5%. Kelly also joked that he prefers the desert landscape to San Diego’s coastal setting.
“It worked out the best for us because it was honestly our second choice,” Kelly said. “It was between here and San Diego where we went into the off-season. San Diego was really the only place that, if we went somewhere, was probably high on our list if we weren’t in Arizona. It’s like, ‘Okay, let’s just skip 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 to The California Post, the Padres said the team “does not comment on contract negotiations.”
Acquired by the Rangers in July 2025, Kelly went 12-9 while splitting the season between Texas and Arizona.
Related article
