2025-26 NBA Salary Cap, 1st and 2nd Aprons, Luxury Tax Levels Revealed Before FA

NBA teams now know just how much financial flexibility they have heading into free agency.

The NBA announced Monday that the salary cap will be set at $154.647 million for the 2025-26 season. The tax level for the upcoming campaign is $187.895 million.

Monday's announcement also included the following totals:

• Minimum team salary: $139.182 million
• First apron level: $195.945 million
• Second apron level: $207.824 million

ESPN's Bobby Marks noted the salary cap number represents the expected 10 percent growth from last season, which gives teams a bit more financial room to make moves. He also reported that the salary cap is expected to increase by 7 percent in 2026-27.

The new salary cap and tax level go into effect at 12:01 a.m. ET on Tuesday.

The timing of the announcement is also notable, as it came just before teams were allowed to start negotiating with free agents at 6 p.m. ET on Monday. The moratorium period begins at midnight and runs until noon ET on Sunday, July 6.

There aren't many teams with the ability to make franchise-altering signings this offseason.

Marks noted Saturday, ahead of Monday's official announcement, that the Brooklyn Nets were the only team projected to have more than $20 million in cap space this offseason in large part because of an increase in rookie and veteran extensions signed since last July.

However, there also aren't any superstars who would command significant contracts on the free agency market this offseason. Rather, the trade market has generated most of the headlines. The Houston Rockets landed Kevin Durant and the Orlando Magic got Desmond Bane, among other moves.

Players such as Jonathan Kuminga, Nickeil Alexander-Walker, Dorian Finney-Smith and Deandre Ayton could be among the most notable free agency additions, which isn't exactly a list of franchise-changing playmakers.

Still, there is at least now official clarity for teams regarding the salary cap as they begin their offseason shopping.