The NBA officially announced that the salary cap for the 2025–26 season will be set at $154.647 million, effective July 1 at 12:01 a.m. ET.
The league also confirmed the luxury tax threshold will be $187.895 million, with teams exceeding that number subject to financial penalties under the league’s tax system.
Negotiations with free agents are permitted to begin today, July 1, at 6:00 p.m. ET — six hours before the start of the league’s moratorium period.
The moratorium will end on Sunday, July 6, at 12:00 p.m. ET, at which point teams can begin officially signing players and completing trades.
The Minimum Team Salary for the upcoming season is set at $139.182 million, representing 90% of the salary cap, as outlined in the collective bargaining agreement.
The NBA also released updated apron levels that serve as spending limits for teams using certain exceptions.
The First Apron Level has been set at $195.945 million, while the Second Apron Level will be $207.824 million.
Teams operating above the apron levels face restrictions in player acquisition, including limitations on sign-and-trade transactions and access to certain exceptions.
The Mid-Level Exceptions, which vary depending on team salary structure, were also announced.
The Non-Taxpayer Mid-Level Exception is $14.104 million for the 2025–26 season.
The Taxpayer Mid-Level Exception has been set at $5.685 million.
Teams with room under the cap may use the Room Mid-Level Exception, which will be $8.781 million.
This financial framework will shape how teams approach free agency, trades, and roster construction in the coming weeks.
Franchises such as the Oklahoma City Thunder, who are coming off an NBA title run, will look to preserve cap flexibility as they build around young stars.
Meanwhile, lottery teams like the Washington Wizards and Charlotte Hornets may pursue veteran free agents or absorb contracts to reach the salary floor.
The NBA’s financial landscape has grown steadily, and this year’s cap continues that upward trend as revenues increase and media rights negotiations loom.
