Payroll sits at $205.5 million after Caleb McConnell and Bryce Harris joined on camp deals Saturday, putting Houston above the $200.4 million tax threshold and below the $209.0 million first apron. Durant, Sengun, VanVleet and Smith Jr. account for most of that number, and VanVleet's $25.0 million player option is the swing factor for how much space Houston keeps below the apron next summer.
Before last season
The roster's cost picture starts with July 6, 2025, when Houston sent Jalen Green and Dillon Brooks to Phoenix in a seven-team deal for Durant. His $43.9 million salary is now the largest on the books, and locking in a 38-year-old All-Star at that number shaped every move since, including this fall's minimum-salary additions.
Last season
Houston went 52-30 on a roster already carrying Sengun's $35.6 million extension, Smith Jr.'s $23.6 million and Eason's $14.1 million, each signed before the 2025-26 season. Those figures, plus Durant's arrival, pushed the Rockets within range of the tax even before training camp opened this fall.
This fall
Caleb McConnell and Bryce Harris joined the roster Saturday on camp contracts, minimum-level deals that barely move the number. Payroll now totals $205.5 million across 16 contracts, which puts Houston above the $200.4 million tax threshold but still $3.5 million under the $209.0 million first apron.
This week
The gap to the first apron matters more than the tax threshold itself: Houston already pays into the tax, but staying under $209.0 million preserves tools like the full mid-level exception and sign-and-trade flexibility. The $221.7 million second apron sits further out as the stricter tier the front office has avoided so far.
Next summer
VanVleet's $25.0 million player option is this cap sheet's biggest unknown; declining it would open room below the apron for 2027-28, a year when Thompson's number jumps to $35.9 million on his new deal. Houston owns its 2028 and 2030 first-round picks outright, with swaps attached to 2027, 2029 and 2030, and seconds owed to Charlotte in 2028 and Memphis in 2029.
Are the Rockets paying the luxury tax this season?
Yes. Houston's $205.5 million payroll is above the $200.4 million tax threshold, though it remains below the $209.0 million first apron.
What is Fred VanVleet's contract situation?
VanVleet holds a $25.0 million player option for 2026-27; his decision on that option will set how much room Houston has below the first apron next summer.
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