NBA Rumors: 2023-24 Salary Cap Increased to $136M and $165M for Luxury Tax

The updated numbers for the NBA's 2023-24 salary cap and luxury-tax threshold dropped Wednesday, with Shams Charania of Stadium and The Athletic relaying the figures:

In 2022-23, the salary cap was set at $123.655 million, while the tax level settled at $150.267 million.

It'll be a 10 percent increase for the salary cap and luxury tax level, which forces teams to pay a surcharge if they hit a certain threshold above the cap.

This marks the second straight year the league has seen 10 percent increases, representing a change from earlier in the decade. The salary cap remained the same in 2020-21 due to the COVID-19 pandemic ($109,140,000). It then rose slightly to $112,414,000 in 2021-22 before making a big leap to $123,655,000 in 2022-23.

The increases will have a positive effect on some players and teams, per ESPN's Bobby Marks.

The news also comes two months after the NBA and NBPA agreed on a new seven-year collective bargaining agreement.