2013-14 season and onward, teams paid an incremental rate based on their team salary. They also have to pay a repeat offender rate, which is an additional dollar for every dollar over. For 2014-15 teams pay the repeater rate if they also were taxpayers in all of the previous three seasons. For 2015-16 and all subsequent seasons, teams pay the repeater rate if they were taxpayers in at least three of the four previous seasons. The table of rates is shown below. Current tax levels The resulting total is then distributed to the remaining teams that are under the tax threshold. There was no luxury tax implemented in the 2004-2005 season due to insufficient basketball-related income. Canadian Football League The Canadian Football League has a luxury tax. Penalties for teams that breach the salary cap regulations are: Other leagues The National Football League (NFL) and the National Hockey League (NHL) both have hard salary caps, making it unnecessary to utilize the luxury tax. Several other leagues in the United States and abroad use salary caps, but the luxury tax is uncommon. See also References Sports rules and regulations Sports labor relations Sports culture Terminology used in multiple sports Personnel economics