Ten percent.
That’s the total increase in the 2025–26 NBA season salary cap, now set at $154.65 million, as period of free agency gets underway.
The National Basketball Association today announced that the Salary Cap has been set at $154.647 million for the 2025-26 season.
— NBA Communications (@NBAPR) June 30, 2025
The league previously announced that the salary cap was set at $140.588 million for the 2024–25 season, making this year’s jump the maximum increase allowed under the league’s collective bargaining agreement.
Even with more money available, not many teams have the space to make major moves. Only the Brooklyn Nets are expected to have more than $20 million in cap room.
Teams nearing or exceeding the new luxury tax threshold of $187.895 million, as well as the first apron ($195.945M) and second apron ($207.824M), will face tougher roster restrictions and financial penalties.
These thresholds also determine which tools teams can use, including the non-taxpayer midlevel exception ($14.104M), taxpayer midlevel exception ($5.685M), and room midlevel exception ($8.781M). The minimum team salary has also increased to $139.182 million.
Despite the quiet market, some teams got to work early. The Atlanta Hawks reportedly signed Nickeil Alexander-Walker and Luke Kennard, while the Houston Rockets landed Clint Capela and Dorian Finney-Smith.
[ALSO READ: Hawks, Rockets make early splash, revamp rosters in Day 1 of 2025 NBA free agency]
Elsewhere, the Dallas Mavericks signed D’Angelo Russell, Jordan Clarkson joined the New York Knicks, and Bruce Brown returned to the Denver Nuggets.
[ALSO READ: Jordan Clarkson to join New York Knicks after finalizing buyout with Utah Jazz—reports]
[ALSO READ: News Nuggets trade Michael Porter Jr., sign returning Bruce Brown on one-year deal—reports]
