NBA Teams' Updated Salary Cap Entering 2026 Free Agency After NBA Draft
The 2026 NBA draft wrapped this past week, and the trade market has already begun to churn. The league's landscape already looks quite a bit different than it did just a few days ago, and we haven't even reached free agency yet.
Free agency will officially open at 12:01 p.m. ET on July 6, but the negotiation window will open at 6 p.m. ET on Tuesday. Naturally, some franchises will enter that negotiation period with a lot more financial flexibility than others.
Here, we'll examine where every NBA team stands in terms of estimated 2026-27 cap space and dive into some of the latest buzz. First, though, let's run down the draft results.
2026 NBA Draft Results
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Estimated 2026-27 Tax Space
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Los Angeles Lakers $108.4 million
Chicago Bulls $103.5 million
Brooklyn Nets $78 million
Washington Wizards $75.3 million
Detroit Pistons $65.5 million
Utah Jazz $58.6 million
Memphis Grizzlies $54.1 million
Charlotte Hornets $52.6 million
Dallas Mavericks $48.6 million
San Antonio Spurs $47.5 million
Los Angeles Clippers $38.8 million
Miami Heat $35.4 million
Portland Trail Blazers $30.8 million
Atlanta Hawks $26.9 million
Golden State Warriors $25.5 million
Milwaukee Bucks $19.1 million
Philadelphia 76ers $18.2 million
Phoenix Suns $15.3 million
Houston Rockets $13.5 million
Boston Celtics $13.3 million
Minnesota Timberwolves $10.6 million
Toronto Raptors $7.9 million
New Orleans Pelicans $4.7 million
Indiana Pacers $247,224
Sacramento Kings -$4.2 million
New York Knicks -$4.5 million
Denver Nuggets -$12.8 million
Orlando Magic -$16 million
Cleveland Cavaliers -$21.2 million
Oklahoma City Thunder -$48.4 million
*Estimated space below the $201 million tax threshold, per Spotrac
Financial Overview
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There are a few things to know about the NBA salary cap and how it relates to the functional spending power of teams in 2026. The first is that the league does not utilize a hard cap like the NFL, meaning teams can and typically do exceed the cap.
According to Spotrac, the Memphis Grizzlies are the only team currently under the $165 million salary cap.
The taxpayer threshold of $201 million can be viewed as a more accurate cap level. Franchises that pass this threshold must pay tax penalties while having the non-taxpayer exception ($15 million) replaced with the taxpayer exception ($6.1 million).
Teams face more penalties if they surpass the first tax apron of $209 million and even more if they surpass the second apron of $222 million. Teams over the second apron face harsh penalties, including the loss of the taxpayer exception and the inability to aggregate contracts in trades.
Only the Oklahoma City Thunder and Cleveland Cavaliers are currently projected to be over the second apron, per Spotrac, though the Denver Nuggets and Orlando Magic have less than $5 million in room below it.
It's also worth noting that the new league year won't officially begin until July 1, so many of the extensions that have already been agreed upon haven't gone into effect just yet.
Active Trade Market Ahead of Free Agency
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We've seen a few early extensions impact the impending free agent market. Los Angeles Lakers standout Austin Reaves, for example, has agreed to sign a four-year, $185 million max extension to stay in L.A.
However, the early trade market has been just as impactful, if not more so.
Things got off to a hot start when the Milwaukee Bucks agreed to send Giannis Antetokounmpo to the Miami Heat for a collection of picks and players. That occurred before the draft, and after the draft, the Charlotte Hornets sent LaMelo Ball and Josh Green to the Minnesota Timberwolves in exchange for Naz Reid and a package of picks.
And we surely haven't seen the last of the pre-free agency deals.
One player to watch closely is Boston Celtics standout Jaylen Brown. The Celtics made a run at Antetokounmpo and had Brown at the centerpiece of their offer. According to ESPN's Shams Charania, Boston is still "actively engaged" in trade talks regarding Brown.
Kawhi Leonard is another notable player who could be on the move, though he's unlikely to be dealt before the start of free agency. During a recent appearance with NBA TV (h/t ClutchPoints), NBA insider Chris Haynes said he believes that the Los Angeles Clippers will trade Leonard if they can't work out an extension with him.
