Which Teams Do/Don't Spend $? (2026 Edition)

With much consternation over aprons and the like, it’s vital to note that NBA teams may be more gun-shy about luxury taxes than the upper-echelon penalties for spending above the second apron.

The 2023 Collective Bargaining Agreement (CBA) lowered the first tax tiers, but raised the price for the higher spenders, while also doubling the repeater tax rate. From talking to executives with multiple NBA teams, the aprons are inconvenient, but heavy repeater taxes are the real disincentive.

It’s also important to note that spending money doesn’t necessarily cause winning. Perhaps the more common path to an expensive roster is to develop a highly competitive team and then invest to keep that group together (as with the Oklahoma City Thunder and New York Knicks). Some teams, like the Charlotte Hornets, never really reached a high enough level to spend, though there’s no guarantee the franchise would go over the tax line if they did.

Some franchises, like the Indiana Pacers, set their maximum roster budget below the tax line, regardless of how well the team is performing (including a recent NBA Finals appearance).

The following is the third breakdown in a series, dating back to last year’s Substack (Which Teams Do/Don’t Spend $?) and a 2024 story I put together at Bleacher Report (Ranking Every NBA Franchise from Cheapest to YOLO).

First, which teams paid taxes for the 2025-26 season?

1. Cleveland Cavaliers $68,671,517

2. Golden State Warriors $67,909,145 (repeat offender)

3. New York Knicks $44,436,593

4. Los Angeles Lakers $22,266,323 (repeat offender)

5. Houston Rockets $7,174,301

6. LA Clippers $6,665,742 (repeat offender)

7. Minnesota Timberwolves $5,986,721

Of the total paid ($223,110,342), half goes to the NBA to help fund the revenue-sharing system. The remaining $111,555,171 was divided equally and paid to the 23 teams below the tax, for a total distribution of $4,850,225.

Not only do franchises have an incentive to avoid tax due to the additional expense, but they also get a bonus for ending the year below the line. Note that of the seven, only the Clippers and Warriors missed the postseason—meaning 11 playoff teams, including the NBA Finals runner-up San Antonio Spurs, were able to do so while avoiding the tax.

This historical tally dates back to the last CBA (2017) and reflects the net tax paid or distributions received. For instance, the Hornets didn’t pay any tax over nine seasons, earning the kickback annually. While spending over the line may be more correlation than causality, I note the trend as well:

Sorting is descending by Net, ascending by playoff appearances, then alphabetical by city (Golden State, Indiana, and Utah aren’t cities, but you get the point).

Of the 30 teams, a third (10) have avoided paying taxes. Two have achieved a relatively high level of success (Pacers and Magic), with five postseason trips apiece. The Hornets, Bulls, and Kings are at the extreme as low spenders with marginal on-court success. Charlotte is trending positively after a strong season; the Bulls and Kings are resetting again.

Seven teams (23.3 percent) may dip into the tax but are otherwise net receivers. The last time Washington spent at that level was near the end of the John Wall/Bradley Beal era. The rest show a higher success rate.

The remaining 13 are net spenders (43.3 percent), though there’s a sizable gap with the final six (starting with the Nets), who are historic heavy spenders. That the Warriors spent more than Nos. 2 (Clippers), 4 (Bucks), and 5 (Lakers) combined gives some perspective on why the NBA wanted aprons to limit spending.

Whether the aprons are working successfully or not is a different question. Cost control is a necessary evil to preserve the Basketball-Related Income split, as much as possible, within the 49-51 range for the players (51 percent in recent years). Players were overpaid last season, leading to a reduction of about five percent; a player on a $10 million salary received about $9.5 million.

The question is the cost-control method, and it appears the NBPA will fight to reduce the impact of aprons in the next round of negotiations. If so, they should also tackle taxation, since so many franchises avoid penalties annually.