Ahead of the 2024/25 season in the National Basketball Association (NBA), the luxury tax threshold totaled 170.81 million U.S. dollars. This was an increase of 3.3 percent from the previous season and over double the threshold from a decade prior.
The NBA operates with what is known as a soft salary cap. According to the rules laid out in the collective bargaining agreement, franchises that go over the salary cap have limited freedom in transfers. However, if a team's spending on salaries goes over the luxury tax threshold, which is always higher than the salary cap, it pays a tax to the league, which is partly redistributed among the franchises that did not exceed the threshold.
Luxury tax threshold in the National Basketball Association (NBA) from 2002 to 2024
(in million U.S. dollars)
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Spotrac. (April 23, 2024). Luxury tax threshold in the National Basketball Association (NBA) from 2002 to 2024 (in million U.S. dollars) [Graph]. In Statista. Retrieved December 30, 2024, from https://www.statista.com/statistics/1480446/luxury-tax-threshold-nba/
Spotrac. "Luxury tax threshold in the National Basketball Association (NBA) from 2002 to 2024 (in million U.S. dollars)." Chart. April 23, 2024. Statista. Accessed December 30, 2024. https://www.statista.com/statistics/1480446/luxury-tax-threshold-nba/
Spotrac. (2024). Luxury tax threshold in the National Basketball Association (NBA) from 2002 to 2024 (in million U.S. dollars). Statista. Statista Inc.. Accessed: December 30, 2024. https://www.statista.com/statistics/1480446/luxury-tax-threshold-nba/
Spotrac. "Luxury Tax Threshold in The National Basketball Association (Nba) from 2002 to 2024 (in Million U.S. Dollars)." Statista, Statista Inc., 23 Apr 2024, https://www.statista.com/statistics/1480446/luxury-tax-threshold-nba/
Spotrac, Luxury tax threshold in the National Basketball Association (NBA) from 2002 to 2024 (in million U.S. dollars) Statista, https://www.statista.com/statistics/1480446/luxury-tax-threshold-nba/ (last visited December 30, 2024)
Luxury tax threshold in the National Basketball Association (NBA) from 2002 to 2024 (in million U.S. dollars) [Graph], Spotrac, April 23, 2024. [Online]. Available: https://www.statista.com/statistics/1480446/luxury-tax-threshold-nba/
