Teams generally prefer to stay under the NBA’s luxury tax threshold ($187,895,000) 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 6 trade deadline approaches, some franchises will likely make cost-cutting moves to lower their luxury-tax bill or get under the threshold 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 going to the NBA, in part to fund the NBA’s revenue-sharing program. The remaining half is sent in equal shares to the teams below the luxury tax line.

The following shows how close each team is to the luxury tax line, and if it is exceeded, what they project to pay in penalties. Check back, as playoff incentives or late-executed trades (triggering any trade kickers) may swing the balance up until the final day of the postseason.

Under Tax

  1. Atlanta Hawks: $182,383, 921 (-$5,511,079)
  2. Brooklyn Nets: $114,660,411 (-$73,234,589)
  3. Charlotte Hornets: $176,191,763 (-$11,703,37)
  4. Chicago Bulls: $153,868,402 (-$34,026,598)
  5. Detroit Pistons: $164,540,386 (-$23,354,614
  6. Golden State Warriors (R): $170,506,402 (-$17,388,598)
  7. Indiana Pacers: $181,833,485 (-$6,061,515)
  8. Memphis Grizzlies: $171,507,315 (-$16,387,685)
  9. Milwaukee Bucks (R): $171,786,015 (-$16,108,985)
  10. New Orleans Pelicans: $183,652,233 (-$4,242,767)
  11. Oklahoma City Thunder: $186,877,564 (-$1,017,436)
  12. Portland Trail Blazers: $186,375,648 (-$1,519,352)
  13. Sacramento Kings: $184,815,189 (-$3,079,811)
  14. San Antonio Spurs: $179,938,561 (-$7,956,439)
  15. Utah Jazz: $143,910,751 (-$43,984,249)
  16. Washington Wizards: $154,042,040 (-$33,852,960)

Taxpayers

  1. Boston Celtics (R): $208,181,489 ($20,286,49), $88,611,301 penalty
  2. Cleveland Cavaliers: $226,287,886 ($38,392,886), $148,995,538 penalty
  3. Dallas Mavericks: $209,049,442 ($21,154,442), $52,161,100 penalty
  4. Denver Nuggets (R): $188,297,059 ($402,059), $1,206,177 penalty
  5. Houston Rockets: $196,985,685 ($9,090,685), $9,942,106 penalty
  6. LA Clippers (R): $194,667,024 ($6,772,024), $20,587,828 penalty
  7. Los Angeles Lakers (R): $201,709,627 ($13,814,627), $48,976,698 penalty
  8. Miami Heat: $189,525,767 ($1,630,767), $1,630,767 penalty
  9. Minnesota Timberwolves: $200,284,704 ($12,389,704), $16,360,214 penalty
  10. New York Knicks: $204,106,498 ($16,211,498), $29,736,493 penalty
  11. Orlando Magic: $193,471,232 ($5,576,232), $5,576,232 penalty
  12. Philadelphia 76ers: $188,436,572 ($541,572), $541,572 penalty
  13. Phoenix Suns (R): $190,464,942 ($2,569,942), $7,709,826 penalty
  14. Toronto Raptors: $193,234,507 ($5,339,507), $5,339,507 penalty

Note: The final numbers may differ slightly (+/- $5.00) based on rounding. Repeat-eligible taxpayers are indicated with “(R).” Any set-off will be calculated at the end of the NBA year (June 30).

Totals

  • Total taxable payroll: $5,489,296,246
  • 14 taxpayers: $437,375,359 penalty
  • $218,687,680 kickback for 16 under tax: $13,667,980

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

(Updated on 7/30/25)