Washington Wizards
The tax line sits at $200.4M. The Wizards' tax payroll (contracts plus dead money; cap holds don't count here) is $208.9M, which puts them $8.5M over.
The bill is charged in $6.1M bands above the line at rates that climb each bracket: $1.00 on the first band, $1.25 on the second band. That works out to about $9.1M. 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, dead money, and drafted rookies booked as signed; free-agent 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 Wizards questions
Numbers come straight from the live Wizards cap sheet, recomputed whenever the data updates.