Image Credit: Eakin Howard-Imagn Images

NBA Announces Salary Cap Changes for Next Season

Salary cap will rise from $140.6 million to $154.6 million.

Image Credit: Eakin Howard-Imagn Images

On Wednesday (26), the NBA released a new salary cap projection for the 2025-26 season. According to Bobby Marks of ESPN, the current figures are expected to increase by 10% in the upcoming free agency period. This means the salary cap will rise from $140.6 million to $154.6 million.

In addition to the $14 million salary cap increase, Marks also revealed other key financial adjustments. The Luxury Tax threshold will be set at $187.9 million, while the First Apron will be $195.9 million, and the Second Apron will be $207.8 million. These thresholds determine the financial and roster-building restrictions that teams must adhere to.

The Luxury Tax refers to penalties imposed on teams that exceed the salary cap for three consecutive seasons. These financial punishments increase progressively based on repeated violations. Meanwhile, the aprons serve as additional spending limits, carrying both financial and competitive penalties, making trades and free-agent signings more challenging for teams that exceed them.

To no surprise, NBA teams were notified that the salary cap in 2025-26 is expected to increase 10% from this past season, sources tell ESPN.

The current projection is the same that were given to teams in the offseason.

Salary cap: $154.6M
Luxury tax: $187.9M
First apron:…
— Bobby Marks (@BobbyMarks42) March 25, 2025

New Agreement Prevents Inflated Contracts in the NBA

During the 2016-17 offseason, the NBA experienced a massive salary cap jump, rising from $63 million to $84.7 million. As a result, many teams overpaid for players due to the sudden influx of available cap space, leading to infamous contracts like those of Timofey Mozgov and Luol Deng.

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However, in the following offseason, players who entered free agency suffered the consequences of an unregulated market. To prevent a similar situation, the NBA, in collaboration with the players’ association, implemented a structured approach, capping annual salary cap increases at 10%—a move driven by increasingly lucrative broadcast deals.

According to Spotrac, only 11 teams are expected to remain under the new cap next season. Among them, only the New Orleans Pelicans, Detroit Pistons, and Brooklyn Nets will have $20 million or more in available cap space for new signings or major contract extensions.