The NBA has set the salary cap for the 2026-27 season at $164.961 million, the league announced Wednesday, establishing the financial framework for free agency and roster building across the league.
The league also announced that the luxury tax threshold for the upcoming season will be $200.428 million. Both figures took effect at 12:01 a.m. EDT on Wednesday, July 1.
Teams are permitted to begin negotiating with free agents beginning at 6 p.m. EDT Wednesday, six hours before the start of the league’s annual moratorium period. The moratorium runs through noon EDT on Monday, July 6, when most agreements can become official.
Under the league’s financial system for the 2026-27 season, the minimum team salary has been set at $148.465 million. The first apron will be $209.015 million, while the second apron will be $221.686 million. The apron thresholds trigger roster-building restrictions under the NBA’s collective bargaining agreement for teams that exceed those spending levels.
The league also announced the values for the three mid-level exceptions available under the collective bargaining agreement, which vary based on a team’s payroll status.
The non-taxpayer mid-level exception has been set at $15.044 million. Teams above the tax threshold that qualify for the taxpayer mid-level exception will have access to $6.064 million. Teams operating with salary cap space will have room for a mid-level exception of $9.366 million.
The salary cap, tax threshold, apron levels, and exceptions will guide front offices as they navigate free agency, trades, and roster construction ahead of the 2026-27 NBA season.
