NBA Announced the Salary Cap for the 2026-27 Season
Numbers for this year are consistent to recent projections. So then, looks like things are going to plan. The National Basketball Association announced on Tuesday that the Salary Cap for the 2026-27 season has been set at $164.961 million. The Tax Level for the 2026-27 season is $200.428 million.
The “Salary Cap” places a limit on the total salaries each team can pay its players during the season, subject to certain “Exceptions.” The Cap is calculated by multiplying projected “Basketball Related Income” (a defined term that generally includes all income received by teams as a result of basketball operations) by 44.74%; subtracting projected player benefits, and then dividing the result by 30.
The Salary Cap Year goes into effect on July 1 of each year. It continues in effect through June 30 of the following year. Here is the official press release as posted by the National Basketball Association Public Communications page:
“The National Basketball Association announced today that the Salary Cap for the 2026-27 season has been set at $164.961 million.
The Tax Level for the 2026-27 season is $200.428 million.
The Salary Cap and Tax Level go into effect at 12:01 a.m. ET on Wednesday, July 1. Teams are permitted to begin negotiating with all free agents today 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 Monday, July 6. For the 2026-27 season:
- The Minimum Team Salary is $148.465 million;
- The First Apron Level is $209.015 million; and
- The Second Apron Level is $221.686 million.
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 2026-27 season is $15.044 million, the Taxpayer Mid-Level is $6.064 million. Mid-Level for a team with room under the Salary Cap is $9.366 million.”
Moreover, when reviewing Cap numbers for the 2026-2027 season there is some improvement for players in the G league. Exhibit 10 bonuses are jumping to $91,000. Plus, guys who sign E-10s, get cut and then play that season with their affiliate G League team for at least 60 days, will now earn $136,000. Not a bad salary to play in the G.
NBA Announced the Salary Cap for the 2026-27 Season
Now that this year’s upcoming season is set in stone. Franchises can still ponder over and prepare for next, next season. Since there is now a little intel attained by the New York Times; emerging on what is expected salary cap wise in 2027.
According to The Athletic’s Mike Vorkunov, “The NBA projects the 2027-28 salary cap to increase by 5.5%. According to a memo the league sent out to teams earlier Tuesday. That would put the projected cap at $174 million and the second apron at $234 million.”
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