NBA Announces $154.6M Cap, 10 Percent Increase for 2025–26

The luxury tax line has been set at $187,895,000. Teams that exceed that figure will face escalating financial penalties. Meanwhile, the first and second tax aprons have been established at $195,945,000 and $207,824,000, respectively, both of which carry additional roster-building restrictions.

The minimum salary floor, which teams must reach to avoid penalties, is $139,182,000.

Here are some of the key exceptions and salary benchmarks for the upcoming year:

• Non-taxpayer mid-level exception: $14,104,000

• Taxpayer mid-level exception: $5,685,000

• Room exception: $8,781,000

• Bi-annual exception: $5,134,000

Maximum salaries will be based on years of NBA service:

• Players with six years or fewer: $38,661,750

• Players with 7–9 years: $46,394,100

• Players with 10 or more years: $54,126,450

Additional numbers of note include the Early Bird exception at $12,991,650, an estimated average salary of $12.93 million, and a trade cash limit of $7,964,000. The maximum Exhibit 10 bonus remains at $85,300.

The new cap figures officially go into effect at 12:01 a.m. ET on July 1, as teams began negotiating with free agents.