How is an NBA luxury-tax bill calculated?

The bill uses progressive brackets: different slices of payroll above the threshold are charged at different rates. SalarySwish’s 2026-27 tracker lists standard rates beginning at 1.00 times the first bracket and rising in later brackets, while repeater teams face higher rates.

When is the NBA luxury-tax bill finalized?

Sports Business Classroom says tax is calculated from the roster on the last day of the regular season and the bill comes at the end of June. Its tracker says playoff incentives and late trades that trigger trade kickers can still change projections through the final day of the postseason.

Where does NBA luxury-tax money go?

Sports Business Classroom says half goes to the NBA, in part for revenue sharing, and the other half is divided equally among teams that finish below the luxury-tax line.