The value of the extension eclipses the four-year, $72 million contract that Kansas City gave outfielder Alex Gordon in 2016.
Perez's deal, which starts in the 2022 season, comes after a 2020 campaign in which he was named the American League Comeback Player of the Year.
"It's hard to believe where I'm coming from, where I grew up, to see the situation I have right now. It makes me feel super happy," Perez told reporters Sunday. "My mother is going to be happy. I know my grandma is going to be happy. I know they're excited for me to be here for four more years, maybe five."
The 30-year-old Perez, who was World Series MVP in 2015, had a .333 batting average with 11 home runs and 32 RBIs last season. He also captured his third Silver Slugger Award in 2020.
Perez has earned five Gold Gloves in his MLB career. He has a lifetime .269 average with 152 homers and 535 RBIs over 979 games in Kansas City.