The NBA had another record-breaking season in luxury tax distribution last year. Nine teams combined with $634.2 million in penalties in 2022-23, eclipsing the previous record $481 million paid by seven teams in 2021-22. This also continues a trend where luxury tax penalties have increased each season since 2019-20. That trend is about to end this season with total penalties expected to decline.
We now have a clearer picture of what this year’s total luxury tax distribution will be with the Damian Lillard and James Harden trade requests resolved. Eight teams are currently projected to spend a combined $517 million in tax penalties. This does not include the Los Angeles Lakers and New Orleans Pelicans, who are slightly over the tax and could easily get under with a small salary dump.
Here’s a breakdown of each taxpayer this season.