The NBA and NBPA are negotiating new luxury tax tiers and rates as part of their ongoing collective bargaining agreement talks.

The sides are interested in increasing the lower tier to make it more viable for teams to spend money into the tax. With salaries increasing across the league, increasing the lower tax bracket tier allows the tax tiers to match up with the money being spent on payroll.

Currently, for between $0 and $4,999,999 over the cap, the tax rate is $1.50 for every dollar over the cap. 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. 

The two sides can redo the dividing lines to make a small dip into the tax more manageable while stepping up the charges for franchises willing to heedlessly go into the tax.

The owners previously sought a hard cap as part of the new CBA, which was treated as a non-starter by the players.