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’s payroll over the tax threshold.

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: $182,472,749 (-$5,422,251)
  2. Brooklyn Nets: $139,371,992 (-$48,523,008)
  3. Charlotte Hornets: $173,447,987 (-$14,447,013)
  4. Chicago Bulls: $174,275,854 (-$13,619,146)
  5. Detroit Pistons: $166,836,660 (-$21,058,340)
  6. Indiana Pacers: $182,448,706 (-$5,446,294)
  7. Memphis Grizzlies: $171,639,285 (-$16,255,715)
  8. Miami Heat: $186,288,637 (-$1,606,363)
  9. Milwaukee Bucks (R): $176,378,563 (-$11,516,437)
  10. New Orleans Pelicans: $185,992,845 (-$1,902,155)
  11. Oklahoma City Thunder: $186,877,564 (-$1,017,436)
  12. Portland Trail Blazers: $186,375,648 (-$1,519,352)
  13. Sacramento Kings: $184,564,788 (-$3,330,212)
  14. San Antonio Spurs: $182,234,835 (-$5,660,165)
  15. Utah Jazz: $144,085,751 (-$43,809,249)
  16. Washington Wizards: $156,338,314 (-$31,556,686)

Taxpayers

  1. Boston Celtics (R): $199,981,489 ($12,086,489), $39,471,940 penalty
  2. Cleveland Cavaliers: $228,584,160 ($40,689,160), $163,794,330 penalty
  3. Dallas Mavericks: $204,748,448 ($16,853,448), $31,983,318 penalty
  4. Denver Nuggets (R): $188,297,059 ($402,059), $1,206,177 penalty
  5. Golden State Warriors (R): $205,341,467 ($17,446,467), $69,441,152 penalty
  6. Houston Rockets: $194,689,411 ($6,794,411), $7,071,764 penalty
  7. LA Clippers (R): $194,667,024 ($6,772,024), $20,587,828 penalty
  8. Los Angeles Lakers (R): $194,820,805 ($6,925,805), $21,087,616 penalty
  9. Minnesota Timberwolves: $202,580,978 ($14,685,978), $24,397,173 penalty
  10. New York Knicks: $207,675,642 ($19,780,642), $45,635,550 penalty
  11. Orlando Magic: $193,471,232 ($5,576,232), $5,576,232 penalty
  12. Philadelphia 76ers: $194,896,507 ($7,001,507), $7,330,634 penalty
  13. Phoenix Suns (R): $188,168,668 ($273,668), $821,004 penalty
  14. Toronto Raptors: $188,667,498 ($772,498), $772,498 penalty

Note: The final numbers may differ slightly (+/- $3.00) 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: $5,566,220,566
  • 16 taxpayers: $439,177,216 penalty
  • $219,588,608 kickback for 16 under tax: $13,724,288

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

(Updated on 10/29/25)