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NBA Announces Salary Cap, Luxury Tax Information for 2021-22 at Start of Free Agency

Paul KasabianFeatured Columnist IIAugust 3, 2021

AP Photo/Mark J. Terrill

The NBA announced the salary cap and luxury tax information for the 2021-22 season on Monday, which marked the first day that free agents and players can negotiate contracts.

Per an NBA Communications press release, the salary cap will be $112.414 million, and the luxury tax level is $136.606 million.

The minimum team salary (90 percent of the cap) will be $101.173 million.

Shams Charania of Stadium and The Athletic initially broke the cap and tax news Monday. He also reported figures for the 2022-23 season: $119 million salary cap, $145 million luxury tax level. The cap is reportedly $4 million higher than previous projections, per Charania.

The 2021-22 cap and tax numbers rose from the figures the NBA used in both 2019-20 and 2020-21—$109.1 million cap, $132.6 million tax level.

Those figures stayed status quo amid the COVID-19 pandemic, which affected the league's bottom line due to a loss of games and revenue without fans in the stands.

However, the cap is back on the rise again. Ben Golliver of the Washington Post reported on what to expect in the future and why on Nov. 10, 2020.

"Going forward, the NBA and the players have agreed that the salary cap would increase by between three percent and 10 percent each year through the end of the collective bargaining agreement, which expires in 2023-24," Golliver wrote.

The cap increase from 2020-21 to 2021-22 is roughly three percent, but that rise will grow to about 5.85 percent from 2021-22 to 2022-23 based off Charania's report. 

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