CapmathCapmathOrlando Magic
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The tax line sits at $201.0M (projected). The Magic's tax payroll (contracts plus dead money; cap holds don't count here) is $217.0M, which puts them $16.0M over.
The tax bill escalates in brackets the deeper a team goes, and repeat taxpayers pay substantially more. The basketball penalties (lost exceptions, trade restrictions) start at the aprons above the tax line.
The rule behind this
The luxury tax is a financial penalty line above the salary cap. Teams whose payroll (contracts plus dead money; cap holds don't count here) exceeds it pay a tax on the overage, at rates that escalate in brackets the deeper a team goes.
More Magic questions
Numbers come straight from the live Magic cap sheet, recomputed whenever the data updates.