Teams generally prefer to stay under the NBA’s luxury tax threshold ($200,474,000) 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.

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: $163,894,051 (-$36,579,949)
  2. Boston Celtics $190,719,020 (-$9,754,980)
  3. Brooklyn Nets: $131,811,858 (-$68,401,969)
  4. Charlotte Hornets: $157,888,978 (-$42,585,022)
  5. Chicago Bulls: $65,917,713 (-$89,454,760)
  6. Dallas Mavericks: $161,783,989 (-$38,429,838)
  7. Detroit Pistons: $139,206,589 (-$61,267,411)
  8. Golden State Warriors: $187,577,336 (-$12,896,664)
  9. Houston Rockets: $187,510,080 (-$12,963,920)
  10. Los Angeles Clippers (R): $171,841,380 (-$28,632,620)
  11. Los Angeles Lakers (R):$110,651,257 (-$89,822,743)
  12. Memphis Grizzlies: $159,305,224 (-$37,004,726)
  13. Miami Heat: $170,651,522 (-$29,562,305)
  14. Milwaukee Bucks: $188,308,755 (-$12,165,245)
  15. Minnesota Timberwolves: $193,358,225 ($7,115,775)
  16. New Orleans Pelicans: $196,330,791 (-$4,143,209)
  17. Philadelphia 76ers: $186,152,322 (-$14,321,678)
  18. Phoenix Suns: $185,670,476 (-$14,803,524)
  19. Portland Trail Blazers: $170,198,098 (-$30,275,902)
  20. San Antonio Spurs: $157,372,286 (-$43,101,714)
  21. Toronto Raptors: $197,126,675 (-$3,347,325)
  22. Utah Jazz: $155,357,350 (-$44,769,755)
  23. Washington Wizards: $189,379,019 (-$11,094,981)

Taxpayers

  1. Cleveland Cavaliers: $212,345,289 ($24,450,289), $68,671,517 penalty
  2. Denver Nuggets (R): $216,880,688 ($16,406,688), $61,428,026 penalty
  3. Indiana Pacers: $200,752,776 ($278,776), $278,776 penalty
  4. New York Knicks: $208,776,828 ($8,302,828), $8,862,284 penalty
  5. Oklahoma City Thunder: $259,653,470 ($59,179,470), $288,820,845
  6. Orlando Magic: $29,126,074 ($16,552,808), $29,126,074
  7. Sacramento Kings: $213,182,977 ($12,969,150), $16,583,271

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: $5,598,284,276
  • Seven taxpayers: $221,156,542 penalty
  • $110,578,271 kickback for 23 under tax: $4,807,751

Email Yossi Gozlan. Follow him on Twitter @YossiGozlan.

(Updated on 6/17/26)