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Merrill Kelly will once again wear an Arizona Diamondbacks uniform at the start of the 2026 regular season.
Kelly, who entered the free agent market after playing 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 he received an offer from the San Diego Padres this offseason. Kelly said his decision to turn down the Padres during the free agency period centered on California’s higher income tax rate compared to Arizona’s.
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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 three-year deal instead of two, California’s 13 percent tax rate on income above $1 million proved a key difference.
“I don’t think it’s a secret how much money you take out of 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 to return to Arizona “has always been the priority.”
Merrill Kelly (29) of the Arizona Diamondbacks looks on before Game 6 of the Championship Series against the Philadelphia Phillies at Citizens Bank Park on October 23, 2023 in Philadelphia, Pennsylvania. (Rich Schultz/Getty Images)
Although Kelly said he loved San Diego, he was not willing to sacrifice a significant portion of his salary to 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 there are on a different level.
“We had my numbers guy do the math, and it just made more sense to go 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)
The Arizona state income tax rate is approximately 2.5%. Kelly also joked that he preferred the desert landscape to San Diego’s coastal setting.
“It worked out better for us because it was honestly our second choice,” Kelly said. “It was between here and San Diego before the offseason. San Diego was really the only place that, if we were going somewhere, would probably be at the top of our list if we weren’t in Arizona. It’s like, ‘All right, let’s jump and take a short six-hour drive to San Diego.’
“But yeah, the desert is our home. I guess we’re not ocean 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.
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