Teams generally prefer to stay under the NBA’s luxury tax threshold ($170,814,000) 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 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 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 over, what they project to pay. 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.

Team Taxable Amount Under/Over Penalty
Atlanta Hawks $169,529,070 -$1,284,930 $0
Boston Celtics $196,574,991 $25,760,991 $65,595,716
Brooklyn Nets (R) $167,554,990 -$3,259,010 $0
Charlotte Hornets $160,393,627 -$10,420,373 $0
Chicago Bulls $166,275,570 -$4,538,430 $0
Cleveland Cavaliers $172,727,954 $1,913,954 $2,870,931
Dallas Mavericks $176,105,780 $5,291,780 $7,968,615
Denver Nuggets $182,574,315 $11,760,315 $20,356,788
Detroit Pistons $130,348,500 -$40,465,500 $0
Golden State Warriors (R) $176,598,341 $5,784,341 $14,614,938
Houston Rockets $160,287,067 -$10,526,933 $0
Indiana Pacers $170,314,476 -$499,524 $0
LA Clippers (R) $173,279,115 $2,465,115 $6,162,787
Los Angeles Lakers (R) $188,200,999 $17,386,999 $53,222,746
Memphis Grizzlies $169,013,097 -$1,800,903 $0
Miami Heat $184,792,287 $13,978,287 $25,901,718
Milwaukee Bucks (R) $193,097,305 $22,283,305 $74,837,699
Minnesota Timberwolves $203,528,446 $32,714,446 $95,961,618
New Orleans Pelicans $172,925,927 $2,111,937 $3,167,906
New York Knicks $188,350,128 $17,536,128 $36,320,416
Oklahoma City Thunder $161,401,458 -$9,412,542 $0
Orlando Magic $150,359,238 -$20,454,762 $0
Philadelphia 76ers $181,208,384 $10,394,384 $16,941,960
Phoenix Suns $219,903,340 $49,089,340 $185,360,375
Portland Trail Blazers $167,158,526 -$3,655,474 $0
Sacramento Kings $168,729,539 -$2,084,461 $0
San Antonio Spurs $149,763,208 -$21,050,792 $0
Toronto Raptors $161,530,186 -$9,283,814 $0
Utah Jazz $143,653,620 -$27,160,380 $0
Washington Wizards $158,918,410 -$11,895,590 $0
Total Salary (Taxable) $5,165,097,904 Penalty Total $609,284,213
Tax Teams 14 Non-Tax Team Share $19,040,132

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

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

(Updated on 12/3/24)