Houston carries a $205.5M payroll into 2026-27, past the $200.4M tax line and short of the $209.0M first apron. The bigger squeeze arrives next year, when Amen Thompson's salary nearly triples.
July 6, 2025
The Durant trade set the structure. He arrived from Phoenix in a seven-team deal, with Jalen Green and Dillon Brooks going the other way. Durant now holds the top number on the sheet at $43.9M. The rest of the core, Sengun, Thompson, Smith, Eason and Sheppard, came through Houston's own drafts, which keeps most of the payroll in players the club developed.
Last season
The group went 52-30 with a 5.4 net rating, sixth in the league. That return is what the payroll is buying. Thompson shot 21.6 percent from three on 37.4 minutes a night, and Sengun hit 30.5 percent. Value per dollar is a spacing question as much as a salary one, and those two are the largest long-term bets.
2026-27
The payroll is $205.5M across 16 contracts. The cap is $165.0M, the tax line $200.4M, the first apron $209.0M and the second apron $221.7M. Behind Durant and Sengun at $35.6M come VanVleet at $25.0M on a player option, Smith at $23.6M, Eason at $14.1M, Adams at $13.0M, Thompson at $12.3M and Sheppard at $11.1M.
2027-28
Thompson's number climbs to $35.9M, while Durant rises to $46.1M and Sengun to $37.3M. Smith dips to $21.8M. Eason moves to $15.2M, Sheppard to $14.0M, and Adams falls to $11.9M. Smart has a $6.4M player option. VanVleet does not appear on that sheet, so his option decides how much room opens, and Houston has no obvious cheap exit from the tax.
Through 2030
The pick ledger limits trade capital. Houston owns its 2028 and 2030 firsts outright. The 2027 and 2029 firsts are swaps. The 2028 second goes to Charlotte and the 2029 second to Memphis, while the 2027 and 2030 seconds are swaps. That is thin currency for a club above the tax line.
Are the Rockets over the luxury tax in 2026-27?
Yes. Their $205.5M payroll is above the $200.4M tax line but under the $209.0M first apron.
Who are the highest-paid Rockets?
Kevin Durant leads at $43.9M, followed by Alperen Sengun at $35.6M, Fred VanVleet at $25.0M on a player option, and Jabari Smith Jr. at $23.6M.
