Free Agency officially gets underway on the evening of June 30 (although no one can officially sign until next week).
One of the biggest question marks heading into the new league year and free agency every summer is the NBA’s salary cap. Once teams have that knowledge, they can figure out how to maneuver their money to maximize their return on investment and put the best possible team on the court (if that’s the plan).
Of course, not knowing the exact number hasn’t stopped a plethora of deals from going through, headlined by the Phoenix Suns’ trade of star Kevin Durant to the Houston Rockets.
The new cap, at $154.647 million, was officially announced on June 30, a 10% increase from last season.
NBA Sets Salary Cap at $154.647 Million
The NBA announced that the salary cap has been set at $154.647 million for the 2025-26 season. The Tax Level for the 2025‑26 season is $187.895 million. The salary cap and tax level go into effect at 12:01 a.m. ET on Tuesday, July 1.
Teams can begin negotiating with all free agents on June 30 at 6:00 p.m. ET, six hours prior to the start of the league’s “moratorium period.” The moratorium period ends at noon ET on Sunday, July 6.
The minimum team salary is $139.182 million, the first apron level is $195.945 million, and the second apron level is $207.824 million for the 2025-26 season.
The Collective Bargaining Agreement provides for three different Mid-Level Exceptions depending on a team’s salary level. The Non-Taxpayer Mid-Level for the 2025-26 season is $14.104 million, the Taxpayer Mid-Level is $5.685 million, and the Mid-Level for a team with room under the Salary Cap is $8.781 million.
Bobby Marks, ESPN’s salary cap expert, has the details to make it a little easier to understand.
Salary Cap figures for the 2025-26 season
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>As expected, a 10% growth from last season
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>Salary Cap: $154,647,000
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>Luxury Tax: $187,895,000
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>First Apron: $195,945,000
>Second Apron: $207,824,000
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>Minimum team salary: $139,182,000
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>Cash in trades: $7,964,000
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>Non-tax mid level:…— Bobby Marks (@BobbyMarks42) June 30, 2025
The increase likely comes from the increase television revenue. Despite some ratings issues at times during the postseason, the NBA continues to see their television money go up and that trend is only continuing now that NBC again has the rights to the league and the NBA on NBC will officially be back next season.
As Marks points out, the most the cap can go up is 10%, making this the largest increase possible (Marks points out that the increase next year will be 7%).
Sources confirm to ESPN that the salary cap in 2026-27 is projected to increase 7%.
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>The maximum allowed is 10%.— Bobby Marks (@BobbyMarks42) June 30, 2025
Obviously, the cap increasing as much as possible is going to help teams, specifically those trying to make a large jump. Teams like the Rockets, who have already made the aforementioned deal for Durant and are reportedly not done big game hunting, the Orlando Magic, who have already landed Desmond Bane in a trade, and the Cleveland Cavaliers, who have dealt for Lonzo Ball, are just a few of the teams who could benefit.
