The Pacers carry $203.7M in salary, above the $200.4M luxury tax line and below the $209.0M first apron. Next season raises the price of the core, and with the 2029 first-round pick already forfeited, Indiana has little room to change course.
Where the money sits
Pascal Siakam and Tyrese Haliburton each earn $48.9M this season. Ivica Zubac follows at $20.3M, then Andrew Nembhard at $19.6M and Obi Toppin at $15.0M. T.J. McConnell and Aaron Nesmith take $11.0M apiece. That is a payroll built around two stars, and right now Haliburton (hamstring), Zubac (ankle), McConnell (hamstring) and Ben Sheppard (knee) are all listed out. A tax-paying team at 2-3 is paying for players it cannot put on the floor, and Miami tonight is one more game without its point guard.
Next year costs more
The 2027-28 sheet does not get lighter at the top. Siakam and Haliburton each rise to $52.3M. Zubac goes to $21.8M, Nembhard to $21.0M and Toppin to $16.0M. The steepest jump is Nesmith, from $11.0M to $19.4M. Jarace Walker ($8.5M), Sheppard ($5.0M) and Larry Nance Jr. ($2.4M) are on this season's sheet but not next season's, and Johnny Furphy's $2.5M is a team option. That is the only real give in the books. The money that comes off is small, and the raises at the top are bigger.
Picks and the real flexibility
Indiana owns its first-round picks in 2027, 2028 and 2030. The 2029 first is forfeited, and the second-rounders from 2027 through 2030 are all swaps. That leaves few trade chips beyond the firsts the front office still holds. The $221.7M second apron is a long way up, but the $209.0M first apron is close enough to shape any midseason move. With the salary cap at $165.0M, Indiana has no cap space. Any upgrade has to be a trade that matches salaries, made by a team already over the tax line. Getting healthy is the cheapest improvement available, and it is the one this team needs most.
Are the Pacers over the luxury tax in 2026-27?
Yes. Indiana's $203.7M payroll is above the $200.4M luxury tax line and below the $209.0M first apron.
Which Pacers contracts come off the books after this season?
Jarace Walker, Ben Sheppard and Larry Nance Jr. are not on the 2027-28 sheet, and Johnny Furphy's $2.5M for that season is a team option. Meanwhile, Siakam and Haliburton each rise to $52.3M.
