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Merrill Kelly will once again wear the Arizona Diamondbacks uniform when the 2026 regular season begins.
Kelly, who entered the free agent market after pitching 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 pass on the Padres during free agency centered on California’s higher income tax rate compared to Arizona’s.
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Merrill Kelly (23) of the Texas Rangers throws 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% tax rate on income over $1 million proved to be a key difference.
“I don’t think it’s any secret how much money they 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 back to Arizona “was always the 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 October 23, 2023 in Philadelphia, Pennsylvania. (Rich Schultz/Getty Images)
While Kelly said he is fond of San Diego, he wasn’t willing to sacrifice a significant portion of his salary in taxes. “I love San Diego,” Kelly said. “It’s just, like I said, they take too much money out of my pocket, man. The taxes there are a different level.
“We had my numbers guy do the numbers and it just made more sense to come home.”
Merrill Kelly (23) of the Texas Rangers watches 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 state income tax rate is approximately 2.5%. Kelly also joked that he prefers 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 anywhere, was probably high on our list if we weren’t in Arizona. It’s like, ‘All right, let’s jump in 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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