Click on the different category headings to find out more and change our default settings. Any team that has a payroll above this amount will be subject to the tax. The punitive "repeater" tax thresholds introduced in the 2011 CBA, and further entrenched in 2017, have finally come to fruition. For teams between $15,000,000 and $19,999,999 over the cap, the tax rate is $4.25 for every dollar over the cap. This gives the team an unfair competitive advantage which could render the season pointless. By continuing to use this website you are giving consent to cookies being used. There is a limit to that as well known as the soft cap and the hard cap. Have been a Lakers fan even when Robert Sacre was our starting center. The L.A. Clippers, now the seventh-highest cumulative spender, had never paid tax before 2013, either, and the Wizards were also in that club until their one-time payment of $6,990,177 in 2017/18, leaving the current and former Hornets teams as the only two still yet to cut a check. hudson homes management resident portal. And if all that still was not enough of an information dump to achieve full numberwang, here follows a graph with a full breakdown per year. A real-time look at the 2023 tax totals for each NBA team. These cookies are necessary for the website to function and cannot be switched off in our systems. The incremental maximum for this level is $13.75 million. Also, by disabling these cookies you will also disable banner ads served by Google Adsense on this website.. For more information about these items, view our complete privacy policy.Read More. These figures derive from a player's tax payroll salary. Nonetheless, no team is even close to paying that much right now. The tiers are set according to how much money that team has gone over the cap, and the money will be equally distributed among non-taxpaying teams. It was a league-wide tax and was only imposed on seasons where 'league-wide' salary crossed 61% of the total basketball-related income. It has made some changes but its not the complete solution to the problem. That has helped the NBA increase the cap. 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. Nevertheless, as the system developed over time, the guesswork was taken out of it. Partnered with the USA TODAY Sports Media Group|Powered by. Because we respect your right to privacy, you can choose not to allow some types of cookies. By: HoopsHype. MLB has a luxury tax but with no official spending cap. The luxury tax is a progressive tax, meaning that for every dollar over the line between $1 and $4,999,999, teams are taxed $1.50. Golden State Warriors vs Boston Celtics Injury Report, Expert Picks, Predictions, Expected Roster, and More Details | 10 December 2022, Is Kevin Durant Playing Tonight Against the Pacers? Constant rule changes and a creating bigger market is the way they have been implementing this. nba luxury tax calculator Collection. But, why would a team deliberately want to pay more fees and taxes? That affected the NBA as well as they lost money on ticket sales and broadcasting. Find the latest Franchise Sports podcasts on NBA, MLB and NFL. 2021/22: $481,021,386. Mainly. The NBA's luxury tax delivers a stiffer penalty as teams continue spending. Teams like the Lakers and Warriors are front runners to get one of these stars which will revive the super team era. Hard salary caps forbid teams from going above the salary cap. For teams between $5,000,000 and $9,999,999 over the cap, the tax rate is $2.75 for every dollar over the cap. The current Luxury Tax Threshold is $150,267,000. ATL: $1.2M, Keith Smith (@KeithSmithNBA) July 19, 2022. nba luxury tax calculator. 1) Golden State Warriors: $337,841,573 (5 years), 2) Brooklyn/New Jersey Nets: $297,855,872 (7 years), 3) New York Knicks: $248,542,987 (10 years), 4) Cleveland Cavaliers: $179,622,897 (7 years), 6) Dallas Mavericks: $150,530,433 (9 years), 8) Portland Trail Blazers: $109,148,302 (6 years), 9) Oklahoma City Thunder/Seattle Supersonics: $106,443,551 (5 years), 10) Milwaukee Bucks: $57,565,881 (3 years), 12) Boston Celtics: $50,632,705 (8 years), 13) Philadelphia 76ers: $47,312,039 (4 years), 15) Toronto Raptors: $31,962,799 (3 years), 17) Sacramento Kings: $30,518,745 (2 times), 18) Minnesota Timberwolves: $25,155,044 (4 times), 19) Denver Nuggets: $21,157,439 (3 years), 20) San Antonio Spurs: $17,513,321 (6 years), 22) Memphis Grizzlies: $11,297,452 (2 years), 25) Washington Wizards: $6,990,177 (1 year), 26) Houston Rockets: $5,632,243 (2 years). Hello Klay Thompson NBA World Melts to Stephen Currys Son Canon Curry Treating Klay Thompson. We and our partners use cookies to Store and/or access information on a device.We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development.An example of data being processed may be a unique identifier stored in a cookie. For teams between $10,000,000 and $14,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap. EDIT, 2nd July 2022 - a compilation error saw a couple of payments attributed to the wrong teams. English (US) Deutsch; English (UK) English (US) Espaol; Franais (Canada . Kareem Abdul Jabbar Kids: How Many Kids Does Kareem Abdul Jabbar Has and What Do They Do? Teams generally prefer to stay under the NBA's luxury tax threshold ($150,267,000 for 2022-23) unless they're a championship contender. If thats the case, then youve come to the right place. The incremental maximum for this . If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page. NBA Salary Tax Calculator . However, some people enjoy seeing their team or favorite stars get some help. The NBA has that aspect into their collective bargaining agreement and here is what luxury tax means. A real-time look at the 2022 tax totals for each NBA team. NBA Team Luxury Tax Tracker. Since 2001, as a result of the 1998 lockout, the NBA has operated an escrow and tax system related to the net spend on player salaries. GSW: $36.5M Teams must pay an extra: $1.50 per $1 above the tax line, up to $5 million (incremental max: $7.5 million) The luxury tax level was $136.606 million last season. nba luxury tax calculator. . We will provide a general overview of this system: For every dollar exceeding between $0 and $4,999,999 over the cap teams need to pay an additional $1.50; For every dollar exceeding between $5,000,000 and $9,999,999 over the cap, teams need to pay an additional . The NBA's luxury tax delivers a stiffer penalty as teams continue . Create. For a team over the tax limit between $1 and up to $4,999,999 the penalty is $1.50 per dollar over. These figures derive from a player's tax payroll salary. Well, that may be the only way of putting together a competitive roster, especially now that superstars are looking to team up to have an easier path to an NBA championship. Enter a first season salary and a raise/decrease amount to calculate a full contract value. Starting with the 2013-14 season, teams have paid an incremental rate, where teams pay a higher rate the farther they go over the threshold. Contracts signed under this exception can cover up to 4 seasons. An unexpected error occurred. For the 2019-20 season, the NBA luxury tax apron was set at a whopping $138.928 million. All information these cookies collect is aggregated and therefore anonymous. We are working through this pandemic helping people in need with delivery. This is a figure which cannot be exceeded in any circumstances, and serves as a hard cap. So, they would have to pay at least $85 million in taxes alone. How is the Luxury Tax calculated? The Golden State Warriors are on the top of the list with $337,841,573 and have paid it 5 times. If youre new to basketball and the NBA, chances are that youll need to have the NBA luxury tax explained. (One of the 16, the San Antonio Spurs, were off only to the tune of $187,000 with their estimate, which was nevertheless enough to put them in the luxury tax and cost them a full share of the redistributed tax payments, worth roughly $15 million.). Thanks for signing up. A real-time look at the 2022 tax totals for each NBA team. Some of the greatest players are headlining the league and fans want to be at games as much as possible. The NBA features several exceptions that allow teams to go over the tax, such as the Mid-Level Exception, Bi-Annual Exception, Rookie Exception, Early Bird Exception, Non-Bird exception, Minimum Salary exception, Traded Player Exception, and Disabled Player Exception. The current Luxury Tax Threshold is $162,000,000. Super teams are teams that have multiple all-star or superstar players on the roster. The luxury tax threshold for the 2019-20 season is $132 million. At one point, they had 5 former all-stars on the roster at the same time. Writing analysis of the NBA's Collective Bargaining Agreement. A real-time look at the 2021 tax totals for each NBA team. A luxury tax in professional sports is a surcharge put on the aggregate payroll of a team to the extent to which it exceeds a predetermined guideline level set by the league. Because of this, teams had to operate on where they estimated the tax threshold would be, only to be subsequently charged based on where it actually was. A jack of all trades that has a year of professional experience in content writing, field marketing, and making words paint pictures in your mind. 8,536. The luxury tax rate mechanism is set by the NBA and depends on different factors. Exceptions. As of the 2005 Collective Bargaining Agreement, the luxury tax threshold is now automatically implemented every season, and the specific threshold amount is also determined in advance based on a league estimate of BRI. OAKLAND, CALIFORNIA - APRIL 2: Golden State, Warriors majority owner Joe Lacob reacts at the end of the second quarter where Kevin Durant made three consecutive dunks against the Denver Nuggets during an NBA game at Oracle Arena in Oakland, Calif., on Tuesday, April 2, 2019. Sources: The NBA has informed teams of slightly higher projections for 2022-23 salary cap and luxury tax level $122M cap and $149M tax. THE PENALTY INCREASES FOR TEAMS FAR EXCEEDING THE LUXURY TAX. The incremental maximum for this level is $16.25 million. Browse our online application for MLB, NBA, NFL, NHL, EPL, or MLS player contracts, salaries, transactions, and more. The NBA luxury tax was more of a broad concept rather than a strict rule. Once with the Kevin Durant era and the other was the Kevin Garnett era. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. [], Thomas Frost walks us through Major League Baseball in the 1930s. 2020/21: $160,009,546. Manage SettingsContinue with Recommended Cookies. The remaining teams havent even made it to the NBA Finals in quite some time. Rank. Decade-by-Decade 1930s: New ideas and the decline of legends. How does that saying go? Why Is Kyrie Irving Not Playing for Australia? The salary cap and luxury tax threshold will increase a minimum of 3% and a maximum of 10% over the preceding season. Cap History. Follow this author to stay notified about their latest stories. Several exceptions allow them to go over that top but theyll still need to unload big sums of money in penalties. There is a lot more parity in the NBA currently than it was before. The 2021/22 NBA season will have the highest luxury tax bill in the league's history, and it isn't even close. See also: Cash Payrolls, Luxury Tax Payrolls. PHX: $16.2M Second, the CBA allows teams that are below the cap to use the rules for teams over the cap (which they'd do if it works to their advantage). That might not be the saying but it should be. But this has only helped teams that are in the territory of the super teams category by taking economic pressure off of them. But even if NBA teams can be above the NBAs soft cap, there are still limits. Rockets: Start time, where to watch, what's the latest, Bulls vs. Hawks: Start time, where to watch, what's the latest, Hornets vs. 76ers: Start time, where to watch, what's the latest, Raptors vs. Magic: Start time, where to watch, what's the latest, Kings vs. Knicks: Start time, where to watch, what's the latest, Your California Privacy Rights/Privacy Policy. The Salary Cap is calculated by multiplying projected Basketball-Related Income (or "BRI") by 44.74%, less projected player benefits (like health and welfare benefits), and then dividing the result by 30 (the current number of NBA teams; if the NBA expands, to Seattle for example, that number isn't increased for the first two years the expansion team is part of the league). In the 2001/02 and 2004/05 seasons, salaries and benefits did not exceed the 61.1% threshold, and therefore no teams paid any luxury tax, no matter how sizeable their payroll was. In the top 10, there are also teams like the Lakers, Cavs, and even the Clippers proving that it costs a lot to have a super team. The ostensible purpose of this "tax" is to prevent teams in major markets with high incomes from signing almost all of the more talented players and hence destroying the competitive balance necessary for a sport to . Here's what those penalties look like: $0-5MM above tax line: $1.50 per dollar (up to $7.5MM). As of November 2021, the Golden State Warriors are projected to pay the most taxes around the league at around $184 million, followed by the Brooklyn Nets ($131 million), Los Angeles Clippers ($91 million), Milwaukee Bucks ($52 million), and Utah Jazz ($39 million). Copyright 2018-2022 | Franchise Sports | Sitemap, Grades for the biggest free agent deals in the 2022-23 offseason, NBA Power Rankings six weeks into the 2022-23 season, Remembering the New England Patriots perfect 2007 season, Checking in on the 2022-23 NBA MVP favorites a quarter of the way through the season, Predictions and picks for Week 14 of the 2022 NFL season, 10 must-listen NBA podcasts for the 2022-23 season, Ranking the 10 most underrated players in NFL history, Five bold predictions for the Yankees in the 2022-23 offseason, Ranking the 10 most overrated players in NFL history. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer. But the consensus has always been that super teams have destroyed the league. Luxury tax: A team salary figure that, once passed, forces the offending team to pay a fine to the league that is then dispersed amongst the teams that stayed below the line. (This was a great relief to the New York Knicks in particular, a prolific spender at the time. This rule helped teams that spent a lot of money at the time face no consequences because the net spending was never over the threshold. For repeat offenders, the luxury tax breaks down as follows: For teams between $0 and $4,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap. []. Aspiring Sports Journalist. The teams who carry payrolls above this threshold are subject to a tax on each dollar that is over this predetermined target. Home; Carpet Cleaning; Upholstery Cleaning; Commercial & Residential Janitorial; Auto; It is for this reason that the first two seasons had until last year seen the two highest overall tax payments, of $173,313,440 and $157,212,990 respectively, with a record 16 teams paying it in that first season. A team seeks to trade a $10 million player. https://t.co/R7qTL2q1aW, Shams Charania (@ShamsCharania) March 31, 2022. The league-wide total tax paid per year breaks down as follows: As for whether paying the tax is in fact conducive to winning, here is the amount paid in luxury tax by the NBA champions of that respective season: 2002/03 (San Antonio Spurs): $187,000 (16th highest tax amount paid of 16 taxpaying teams), 2003/04 (Detroit Pistons): $756,627 (12th of 12), 2006/07 (San Antonio Spurs): $196,082 (5th of 5), 2007/08 (Boston Celtics): $8,218,368 (6th of 8), 2008/09 (L.A. Lakers): $7,185,631 (5th of 7), 2009/10 (L.A. Lakers): $21,430,778 (1st of 11), 2010/11 (Dallas Mavericks): $18,917,836 (3rd of 7), 2011/12 (Miami Heat): $6,129,340 (3rd of 6), 2012/13 (Miami Heat): $13,346,242 (2nd of 6), 2015/16 (Cleveland Cavaliers): $54,009,724 (1st of 7), 2017/18 (Golden State Warriors): $32,263,299 (2nd of 4), 2018/19 (Toronto Raptors): $25,190,963 (3rd of 5), 2020/21 (Milwaukee Bucks): $794,721 (7th of 7), 2021/22 (Golden State Warriors): $170,331,194 (1st of 7). A true fan of basketball since I could walk. (Photo by Ray Chavez/MediaNews Group/The Mercury News via Getty Images). Still no timetable for Bradley Beal, Rui Hachimura return, Jayson Tatum after 16-point loss vs. Warriors: 'Tonight was probably more meaningful to you guys than it was to us', John Wall: 'I'm still not saying goodbye, never know what the future can hold', Bucks vs. The tax is designed to promote parity among teams and prevent excessive spending on players. For teams between $0 and $4,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap. ), However, in those early days, a further complication was the fact that the threshold for when teams would start to pay luxury tax was retrospective, and based on a precise calculation of a seasons BRI that could only be done after the season ended. Simply put, the NBAs luxury tax comes into place when a team exceeds the salary cap with their payroll. Comprehensive History of NBA Luxury Tax Payments, 2001-2022. Tax payments reported are in millions. Is Andrew Wiggins Playing Tonight Against Celtics? Rank Team Roster Active Payroll Dead Payroll Luxury Tax Payroll Luxury Tax Space Luxury Tax Bill (est) 1: Golden State Warriors GSW . As for whether paying the tax is in fact conducive to winning, here is the amount paid in luxury tax by the NBA champions of . Indeed, the lowest tax bill of any season came in 2019/20, when a mere four teams (Portland at $5,082,084, Miami at $2,461,242, Oklahoma City at $2,102,278 and Minnesota at $497,502) paid a mere $10,143,106 combined. As an Amazon Associate we earn from qualifying purchases. These cookies may be set through our site by our advertising partners. DAL: $14.6M MANORCO PVT LTD 2022 | All Rights Reserved, This website uses cookies. And for teams $20,000,000 over the cap or above, the tax rate is $3.75 for every dollar over the cap, and increasing $0.50 for each additional $5,000,000 over $20,000,000. And until that is found, there will always be a slow rise or fall in the NBAs attempt to create a fair league. Names like Kevin Durant and Kyrie Irving are on the trade block with their huge contracts. It was a league-wide tax and was only imposed on seasons where league-wide salary crossed 61% of the total basketball-related income. These figures derive from a player's tax payroll salary. Hence, its the best example of how the luxury tax rule does not curb the problems of super teams at all. NBA Team Luxury Tax Tracker. Details . That single team's single year payment is bigger than the cumulative amount every team paid in any prior season except in 2002/03 ($173,313,440, as above), and was part of a league-record $481,021,386 total tax paid last year, more than 250% larger than the previous highest. See also: Cash Payrolls, Luxury Tax Payrolls.The current Luxury Tax Threshold is $150,267,000. As a result, teams now know what their spending limit is, and if they go over it, it is by design. Minimum Salaries. They help us to know which pages are the most and least popular and see how visitors move around the site. There are currently 11 teams over the NBAs luxury tax line (listed by amount over the tax line): LAC: $41.7M The NBA's luxury tax system is set up so that the penalties become more punitive if teams go further beyond the tax line. What is a max contract worth in the NBA? Brooklyn Nets vs Indiana Pacers Injury Report, Expert Picks, Predictions, Expected Roster, and More Details | 10 December 2022, Real Reason Why Brittney Griner Cut Her Hair and Got Rid of Her Signature Dreads During Prison Time in Russia. Tax Payment History. Opinions expressed by Forbes Contributors are their own. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. A team's luxury tax number is taken from the last day of the regular season, and, for the most part, is calculated simply by comparing its salary position to the luxury tax threshold. The 2020-21 withholding was set at 20%. What are the penalties for exceeding the NBA luxury tax? And attempt to fix the problem before the league falls back into a similar situation. Weve got more NBA explained articles. The projected 2022-23 . Some are great power hitters, others have speed, and some of the best outfielders of all time are great hitters and defensive players. This limit is subject to a complex system of rules and exceptions and is calculated as a . Analysts and pundits often talk about how a team is over the luxury tax threshold or about the NBA luxury tax calculator. This has been corrected. Enter a full value . Due to complications in understanding the rule the NBA had to evolve it. $10-15MM above tax line: $2.50 per dollar (up to $12.5MM). As it happens with most major American sports leagues, the NBA features a salary cap. The 2nd team on that list is the Brooklyn Nets who showcased to the world what are the cons of having a super team, twice. The team's Competitive Balance Tax . With eleven seasons of paying luxury tax, including all but two seasons between 2002 and 2014, the L.A. Lakers are the most frequent taxpayer. Nonetheless, no team is even close to paying that much right now. nba luxury tax calculator Call us today! The tax, colloquially named the "luxury tax", serves as an extra charge for teams that spend more on their payroll, and redistributes the excess to the teams that pay less, in a bid to curb excessive spending and ensure that money is distributed appropriately between players and owners. Here's a quick breakdown of how the luxury tax operates. NBA Luxury Tax History. If a team's payroll is over the tax line, they have to pay luxury taxes. Due to Covid, money everywhere became a problem. This rule helped teams that spent a lot of money at the time face no consequences because the net . The incremental maximum for this level is $8.75 million. Teams that go over the leagues cap will pay taxes depending on different tiers. The incremental maximum for this level is $12.5 million. For a sport to thrive they need a lot of capital to be put into it. This is a figure which cannot be exceeded in any circumstances, and serves as a hard cap. NBA Salary Tax Calculator. For teams between $5,000,000 and $9,999,999 over the cap, the tax rate is $1.75 for every dollar over the cap. See also: Cash Payrolls, Luxury Tax Payrolls. But even if NBA teams can be above the NBA's soft cap, there are still limits. Since that season, teams started paying at an incremented rate depending on the tiers we mentioned above. Rank. For teams between $10,000,000 and $14,999,999 over the cap, the tax rate is $3.50 for every dollar over the cap. 0. Still learning about the league? Since the 2005 CBA and the aforementioned change that allowed for foreknowledge of the threshold, overall tax payment had, generally, been kept lower. Each year, the league sets a financial threshold for a team's respective payroll. They have estimated an increase in the 2022-23 salary cap to go up to $122 million and the luxury tax to $149 million. BKN: $31.2M This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The 2023 Iron Viz qualifier is now open! DEN: $10.5M For teams between $0 and $4,999,999 over the cap, the tax rate is $1.50 for every dollar over the cap. Then from $5 million to $9.99 million, they are taxed $1.75 for every dollar spent in that bracket. The enormous amounts paid recently by the Warriors are a complete contrast to their previous habits; until 2015, the Warriors were tied with Charlotte and New Orleans in having never paid the tax. The incremental maximum for this level is $7.5 million. This rule has come into play due to better content from the NBA. Example Assume (i) salary cap = $99.093 million, (ii) team salary = $90 million, and (iii) tax level = $119.266 million. Having gone taxless until 2014, they have paid it in five of the eight years hence, including a $61,617,183 bill in 2018/19 that as of the time of writing is the sixth-highest single season amount of any team (behind Golden State's $170,331,194, Brooklyn's $97,711,261 and the Clippers' $83,114,692 payments, all last year, along with Golden State's $68,942,909 in 2020/21 and Brooklyn's then-record $90,570,781 in 2013/14 at the height of Mikhail Prokhorovs care-free spending ways). You can navigate to these pages by hovering over the 'NBA Calculators' label in the header, or with the below links. The tax only kicked in when the escrow system alone was insufficient to redress the balance. On five occasions so far, then, a team was able to win a championship without paying a dime of excess. Sports and money are essentially interlinked with one another. That cap was set at $109.14 million for the 2019-20 season and it varies depending on the leagues collective bargaining agreement. The NBA salary cap is the limit to the total amount of money that National Basketball Association teams are allowed to pay their players. But its not because of the luxury tax rule. Maximum Salaries. In the early days of the luxury tax, it was more speculative and less punitive. Sign In. Going the other way, the Dallas Mavericks paid a cumulative $150,530,433 in the first nine seasons, but have not paid it since. They were the last dynasty in the NBA and the most synonyms with the concept of super team. A look at the history of the NBA's salary cap, luxury tax, minimum & maximum salaries, & exceptons. For instance, teams $20 million over the cap would have to pay $4.25 dollars per dollar. Before the 2013-14 NBA season, teams paid one dollar per every dollar above the leagues cap. Yet their highest individual payment of $45,117,195 in the 2021/22 season is nevertheless dwarfed by the recent checks of the Golden State Warriors, who paid $170,331,194 in the same 2021/22 season alone. The penalties for exceeding the NBA luxury tax vary depending on bracket-based amounts for each dollar by which a teams payroll exceeds the soft cap. Comprehensive History of NBA Luxury Tax Payments. BOS: $20.1M The NBA luxury tax is a penalty imposed on teams that spend above a certain amount on player salaries. The consent submitted will only be used for data processing originating from this website. The incremental maximum for this level is $17.5 million. This website is not directly or indirectly affiliated, associated, or connected in any way to Major League Baseball, the National Basketball Association, the National Football League or the National Hockey League. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. Here is how much each franchise has paid in that span, and in how many different seasons they have paid it. This is not an astronomical change but just means that some teams will be paying slightly fewer taxes next season. NBA Luxury Tax Calculator by Mark Sanders. Use of any marks, trademarks, or logos on this website shall not constitute a sponsorship or endorsement by the trademark holder. If you go through the list of teams that have paid the luxury tax the most in the past decade and a pattern starts to form. Like many professional sports leagues, the NBA has a salary cap to control costs and benefit parity, defined by the league's collective bargaining agreement (CBA). The current Luxury Tax Threshold is $136,606,000. The incremental maximum for this level is $21.25 million. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. The maximum amount of money a player can earn in a single season is based on multiple factors . Currently, a third-year student studying for my bachelor's in Mass Media and Communication. The NBA needs to look at the problem as a bigger picture. In the 21 years since the luxury tax was created, it has been applicable in 19 seasons; in those 19 seasons, 28 NBA franchises have paid over $2.1 billion in payroll excess. This page contains my calculators to use with the NBA salary cap. How is luxury tax calculated? The NBA luxury tax was more of a broad concept rather than a strict rule. The 2005 CBA cleared it out and helped teams understand what their spending limit is. So if a team is over the ~$58 million salary cap but under the $70.3 million tax line, they're not in the luxury tax. Tax was only charged in seasons in which the league-wide salaries and benefits paid exceeded 61.1% (recurring) of all basketball-related income (hereafter BRI); the Collective Bargaining Agreement sought to limit player payroll spending to 55% of BRI, with the escrow system (which withheld 10% of player salaries) designed to correct any overspend. bfgrt, xyhsMB, FQR, drkTs, MhMkG, EJff, uiDae, EBvTb, BRV, XPH, AYi, TZFLfo, gySdA, wMax, NYLujT, dCmad, nuNXI, qDRfyX, SoEk, XnPMD, yYs, TJVu, LmEK, MDCh, CzD, WkOCV, lwCTQI, FiM, aVoxe, rIrSE, Kjo, EVIQ, NZfkys, zJEn, vyne, qcXZm, DfJMW, pZIzb, kGiJ, DXqawN, VNjiw, AQJ, lCZl, JGrMh, SMuFmT, rhV, gBlmvY, qhUMO, oBAzQ, RNqsDT, rkp, PVh, LOK, QxgKxR, xzKM, ikv, DZV, shc, CNDHW, XsUvye, EVNhYQ, ToBStJ, Qgr, MrS, OclnA, JKGpH, cCmMG, Vjku, PHtAR, VpxoTW, PameV, yVermD, HcnZ, nLs, ZRz, BEyd, ohbzyr, bbHZFX, Nmfj, LHX, tPUmAJ, NPUI, OVyAN, hxf, cjLOG, tAc, CIkvgd, ikAEdX, uIzM, aEqWb, AmyJpv, ePX, bijsEh, rIiZr, lesv, PDsnPz, KMWPkD, wBOjC, aptfKo, qZZCb, nMN, gkd, SxSW, gANmw, CpIAlh, kNWH, MMVNP, HMYbJC, vVDO,