The NBA has officially finalized its salary cap and tax thresholds for the 2026-27 season.
The salary cap will be $164.96 million, just shy of the league’s eaarlier projection of $165 million. That’s up roughly 6.7 percent from last season’s $154.65 million cap.
The luxury tax line has been set at $200.43 million, while the first and second tax aprons will come in at $209.02 million and $221.69 million, respectively.
Here are some of the league’s key financial figures for the new season:
- Salary cap: $164,961,000
- Luxury tax: $200,428,000
- First tax apron: $209,015,000
- Second tax apron: $221,686,000
- Salary floor: $148,465,000
- Non-taxpayer mid-level exception: $15,044,000
- Taxpayer mid-level exception: $6,064,000
- Room exception: $9,366,000
- Bi-annual exception: $5,477,000
Maximum salaries have also been finalized:
- 0-6 years of service: $41,240,250
- 7-9 years: $49,488,300
- 10 or more years: $57,736,350
The numbers will immediately shape free agency across the league, determining everything from maximum contracts to the various exceptions teams can use to sign players.
They’re especially significant for teams attempting to remain below one of the league’s two tax aprons, as crossing those thresholds triggers a variety of roster-building restrictions under the NBA’s current collective bargaining agreement.
For instance, teams operating above the first apron face limitations involving sign-and-trades and certain salary-cap exceptions, while clubs above the second apron encounter even stricter restrictions on trades, cash in deals and other roster moves.
Meanwhile, according to The Athletic’s Mike Vorkunov, the NBA is currently projecting the salary cap to increase another 5.5 percent for the 2027-28 season, which would push it to just over $174 million.
MORE HOOPS | NBA free agents by position
Looking for the latest NBA Insider News & Rumors?
Be sure to follow Hoops Wire on TWITTER and FACEBOOK for breaking NBA News and Rumors for all 30 teams!
