Second, and more importantly, they are one step closer to resetting their luxury tax repealer clock. Teams that are luxury taxpayers in three of the four previous seasons are designated repeat taxpayers. They have to pay $2 more per tax level than standard taxpayers, resulting in more punitive tax penalties. As an example, if the Celtics were standard taxpayers this season, their $283 million tax penalty shown above would be $193 million.
The Celtics need to avoid the luxury tax both in 2025-26 and 2026-27 to reset their repeater clock. Doing so would make them standard taxpayers from 2027-28, when Tatum will be two years removed from his injury, through 2029-30. This would give the Celtics a three-year window at the end of the decade to blow past the aprons and spend as much as possible. That is their true window to compete for a championship, not now.
