<Tr> <Td> $100,000 to $300,000 </Td> <Td> $2 </Td> <Td> First Round </Td> </Tr> <Tr> <Td> More than $300,000 </Td> <Td> $3 </Td> <Td> First and Second Round </Td> </Tr> <P> The National Football League (NFL) and the National Hockey League (NHL) both have hard salary caps, making it unnecessary to utilize the luxury tax . </P> <P> Several other leagues in the United States and abroad use salary caps, but the luxury tax is uncommon . </P>

When does the nba luxury tax kick in