Two of those domestic titles came in the timeframe Premiership Rugby have been investigating, with Saracens winning 53 of 72 matches.
Their stacked squad includes England test stars Owen Farrell, Maro Itoje, Billy and Mako Vunipola, Jamie George, George Kruis, Elliot Daly along with Lions and Welsh fullback Liam Williams, Springboks prop Vincent Koch and New Zealand-raised Scotland international Sean Maitland.
A statement from Premiership Rugby read: "The decision of the independent panel is that Saracens Rugby Club failed to disclose payments to players in each of the seasons [2016-17, 2017-18 and 2018-19].
"In addition the club is found to have exceeded the ceiling for payments to senior players in each of the three seasons.
"The salary cap regulations stipulate that a points deduction may be imposed in the current season (2019-20) only. The sanction has no bearing on any other domestic or European competition."
The punishment drops Saracens to the foot of the Premiership table ahead of their fourth game of the season on minus 26 points, leaving the squad facing an uphill battle to avoid relegation.
England's domestic salary cap, which sits at £7m excluding two marquee players, aims to level the playing field for all clubs in the league.
Saracens responded strongly and will seek a review of the decision by an arbitration body. The review can only be on the basis there has been an error of law, the decision is irrational or contains procedural unfairness.
Sanctions will be suspended pending the outcome of the appeal.
There is also, however, the possibility other clubs will call for Saracens to be stripped of titles.
The announcement of this punishment is thought to have been delayed to avoid derailing England's World Cup campaign.
In a statement Saracens said they were "shocked and disappointed" by the outcome.
"The club is pleased the panel acknowledged it did not deliberately attempt to breach the salary cap and steadfastly maintains that player co-investments do not constitute salary under the regulations. This view is supported by independent legal and professional experts.
"The club will continue to vigorously defend this position especially as PRL precedent already exists whereby co-investments have not been deemed part of salary in the regulations.
"As previously stated, the club made administrative errors relating to the non-disclosure of some transactions to PRL and for this we apologise.
"We are pleased to confirm we now have a robust governance framework in place and this will be overseen by an external counsel to ensure the Club follows best practice.
"Furthermore, it is the club's belief that the panel's narrow interpretation of the regulations is detrimental to player welfare across the league and is damaging the development of elite level rugby in the UK."
