Pacers maintain status as non-taxpaying NBA team since 2005

Yahoo Sports1 min read • Latest: Sep 2, 2026, 11:08 AM

Last updated Sep 2, 2026

Pacers maintain status as non-taxpaying NBA team since 2005
Summary

The Indiana Pacers have not paid the NBA luxury tax since the 2004-05 season. Throughout the two decades since that campaign, the franchise has consistently maintained a team salary below the league-mandated luxury tax threshold. Instead of paying the tax, the organization has received distributions of funds from teams that did exceed the limit. The Pacers are one of five NBA clubs to avoid the tax threshold in this timeframe, joining the Memphis Grizzlies, Detroit Pistons, Charlotte Hornets, and Sacramento Kings. While the franchise reportedly considered exceeding the threshold during the 2025-26 season following a trip to the NBA Finals, those plans stalled. Changes to the roster occurred after a season-ending injury to Tyrese Haliburton and the subsequent departure of Myles Turner during free agency.

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Status Watch
  • The Pacers have not paid the NBA luxury tax since the 2004-05 season.
  • The franchise has consistently received financial distributions from taxpaying teams.
  • Memphis, Detroit, Charlotte, and Sacramento are the only other teams with similar streaks.
  • Injury to Tyrese Haliburton and the exit of Myles Turner halted planned spending in 2025-26.
Latest Updates
  • 11:08 AMYahoo SportsThe Pacers haven’t been a tax paying team since the …
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