Analyzing the Celtics Options Within Their Luxury Tax Constraints - 2026 Offseason Preview
On the Celtics' salary cap situation, two year luxury tax avoidance plan, key players with impending contract decisions, and why they should seek upgrades ahead of the 2027 offseason.
The Celtics didn’t participate in the tanking wars, but they still had somewhat of a “gap year”. Instead of focusing on retaining or replacing high-end talent on the roster, they emphasized short and long-term salary cap and luxury tax flexibility. Perhaps it may have cost them a playoff series win or two, but the costs required to run back their 2024 and 2025 rosters were too expensive and unsustainable.
The Celtics are now entering the offseason with more questions after an early playoff exit to the Sixers. It could go a number of different ways, from mostly running it back within a tight budget to potentially trading Jaylen Brown. Cleaning up their cap sheet was just half the battle. Now they need to start finding undervalued players who could help make them top-tier title contenders again once they’re ready to start going deep into the tax again.
2026 Offseason Previews
Atlanta Hawks | Boston Celtics | Brooklyn Nets | Charlotte Hornets | Chicago Bulls | Cleveland Cavaliers | Dallas Mavericks | Denver Nuggets | Detroit Pistons | Golden State Warriors | Houston Rockets | Indiana Pacers | Los Angeles Clippers | Los Angeles Lakers | Memphis Grizzlies |
2026 Contract Projections
Current Extension Eligible Players Part 1 | Current Extension Eligible Players Part 2 | Current Extension Eligible Players Part 3 | Current Extension Eligible Players Part 4 | Standout Minimum Players | Free Agents and Pending Options Part 1 | Free Agents and Pending Options Part 2
Salary cap situation, luxury tax plan, and draft assets
It’s important to understand the Celtics’ luxury tax situation before discussing any possible roster changes. As explained on Third Apron, they were always going to trade some of their starters because of several factors. One is the new luxury tax system implemented in 2025-26, which increased the rates for teams the deeper they go into the tax.
The Celtics were also set to pay significantly higher rates because of the repeater tax. They were designated as repeat taxpayers in 2025-26 since they finished over the tax in three of the previous four seasons. The new luxury-tax system increased each tax level by $2 per dollar. The exponential increases from the more punitive repeater rates pushed their roster cost and tax penalty above $500 million.
It was untenable to run back a team with a tax penalty greater than the sum of its players’ actual salaries, even if the Celtics repeated as champions. That is why they aggressively reduced their payroll last offseason in deals involving Jrue Holiday and Kristaps Porzingis. They understandably prioritized financial relief as the primary value in those trades over players who could directly replace them in the rotation.
The Celtics were still above the luxury tax line despite saving over $250 million, but they were within range of getting below it with several moves ahead of the trade deadline. The decision was a long-term play: by getting under the luxury tax in both 2025-26 and 2026-27, they would no longer be in the repeater tax in 2027-28, 2028-29, and 2029-30. That is their true window for title contention, when they can go deep into the luxury tax again while paying the more sustainable standard tax rates.
This context explains why last year’s Celtics roster lacked veterans, with nine players earning rookie-scale or minimum salaries. With that in mind, don’t be surprised if the roster remains relatively similar to last season’s or only receives marginal upgrades. That doesn’t mean they can’t make a significant addition, but it will be difficult to do while adhering to the luxury-tax line.
