Houston's payroll sits at $205.5M, above the $200.4M luxury tax line but below the $209.0M first apron. Four contracts carry most of that weight, and the bill only grows next season.
Last season
Houston closed 2025-26 at 52-30 with a net rating of 5.4, and the payroll that built that record landed at $205.5M across 16 contracts — above the $200.4M tax line, the cost of keeping Durant, Sengun and the rest of the rotation together for a full year.
This season
The number hasn't moved: $205.5M, still above the tax line and below the $209.0M first apron. Durant's $43.9M and Sengun's $35.6M lead the sheet; VanVleet's $25.0M carries a player option, and Smith Jr.'s $23.6M and Eason's $14.1M round out the top five. VanVleet's deal is also the only one among the five not carried into next season's sheet, since his number depends on that option rather than a fixed future year.
Next summer
The bill rises in 2027-28. Durant's number climbs to $46.1M, Sengun to $37.3M, and Thompson's new deal jumps to $35.9M. Smith Jr. falls to $21.8M, Eason to $15.2M, and Sheppard's rookie-scale number reaches $14.0M. Smart holds a $6.4M player option that will shape the final figure.
Draft capital
Houston owns its 2028 and 2030 first-round picks outright, with swap rights attached to 2027, 2029 and 2030. Both second-round picks are already committed elsewhere: 2028 goes to Charlotte, 2029 to Memphis. No first-rounder has been traded away in either direction.
The room left
The stricter line is the $221.7M second apron, well above the current $205.5M figure. The front office has already chosen to pay the tax rather than shed salary, leaving Houston room to operate below the first apron but a real decision point once the second apron comes into view.
Are the Rockets over the salary cap?
Yes. Houston's $205.5M payroll is above the $165.0M salary cap and the $200.4M luxury tax line, though still below the $209.0M first apron.
Who are the Rockets' biggest contracts?
Kevin Durant ($43.9M), Alperen Sengun ($35.6M), Fred VanVleet ($25.0M, player option) and Smith Jr. ($23.6M) are the four largest deals on the books.
