NBA 2022-23 Luxury Tax Tracker

Teams generally prefer to stay under the NBA’s luxury tax threshold ($150,267,000 for 2022-23) unless they’re a championship contender.

Some may have begun rebuilding (or aren’t as good as they had hoped) but still have large contracts on the books that will soon expire.

As the February 9 trade deadline nears, some franchises will make cost-cutting moves to lower their luxury-tax bill or get under altogether. Others may turn away trade opportunities that push their team payroll into the tax.

Tax is calculated based on a team’s roster as of the last day of the regular season. The bill comes at the end of June, with half of the amount paid funding the NBA’s revenue-sharing program. The remaining half is sent in equal shares to the teams below the luxury tax line.

As of early December, 10 teams are over the tax for roughly $692 million in penalties. Half that figure would be distributed to the 20 teams under the line at about $17.3 million each. If the Philadelphia 76ers, who are over by about $1.2 million ($1.8 million penalty), can get under, the franchise would be due for approximately $16.4 million in the tax kickback (a 1/21st share).

Note: The 76ers did get under the tax via the trade deadline.

The Portland Trail Blazers [were] so close to the tax that they may be initially unwilling to add another player to fill in for injured forward Nassir Little (hip). The team can manage for now without losing that end-of-year distribution [and ultimately created breathing room under the tax via trade before the deadline].

The following shows how close each team is to the luxury tax line, and if over, what they project to pay. Check back, as playoff incentives may swing the balance up until the final day of the postseason.

Note: The final numbers may be slightly different (+/- $8.00 based on rounding).

Email Eric Pincus at eric.pincus@gmail.com and follow him on Twitter @EricPincus.

(Updated on 6/14/23)