NBA Teams' Updated Salary Cap After Day 3 of Contracts, Trades in 2026 Free Agency
The 2026 iteration of NBA free agency, which unofficially opened on Tuesday evening, continues to roll on. Thursday brought a comparatively slow day of activity, though that shouldn't come as a surprise.
Trades dominated the early NBA offseason. Since the eve of the draft, we've seen the likes of Giannis Antetokounmpo, LaMelo Ball, Ja Morant, Walker Kessler, and Jaylen Brown change teams via trades.
Thursday didn't bring a slew of splash trades, but it did bring a few standout free agent signings and plenty of questions about what comes next.
Before we get into the first weekend of free agency—and its official start date on Monday—here's an updated look at where every team stands financially.
Cap vs. Tax
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Full transparency here. We're not actually tracking where teams stand against the salary cap, and there's a good reason for that.
The NBA cap, which was officially set at $164.961 million on Tuesday, isn't a hard cap like, say, the NFL's salary cap. Teams can exceed it, and most do, though there are penalties. Franchises that are over the cap cannot simply use salary dollars to sign free agents. They must utilize exceptions or limit themselves to league-minimum contracts.
However, since the vast majority of NBA teams regularly operate above the cap, tracking the luxury tax threshold provides a more accurate gauge of each team's spending power.
Once teams go over the tax line, which was set at $200.428 million, they face stricter penalties. They must pay financial penalties to the league and, perhaps more notably, have the non-taxpayer exception ($15 million) replaced with the more restrictive taxpayer exception ($6.1 million).
The first tax apron ($209.015 million) and the second tax apron ($221.686 million) face even more significant penalties, and things compound for teams that exceed the tax line or the tax aprons for multiple seasons.
What we'll actually examine below is each team's estimated space below the tax line, not accounting for cap holds, according to Spotrac.
Estimated 2026-27 NBA Tax Space
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Los Angeles Lakers $115.8 million
Chicago Bulls $95.5 million
Brooklyn Nets $92.5 million
Los Angeles Clippers $70.4 million
Detroit Pistons $65 million
Washington Wizards $62.2 million
Memphis Grizzlies $56.2 million
Charlotte Hornets $52 million
Utah Jazz $49.4 million
Dallas Mavericks $41.2 million
Miami Heat $34.8 million
Atlanta Hawks $34.7 million
San Antonio Spurs $34.6 million
Golden State Warriors $30 million
Milwaukee Bucks $23.5 million
Cleveland Cavaliers $20.5 million
Boston Celtics $18.9 million
Philadelphia 76ers $16.8 million
Houston Rockets $12.9 million
Minnesota Timberwolves $12.4 million
New Orleans Pelicans $12.1 million
Phoenix Suns $11.8 million
Portland Trail Blazers $8.9 million
Toronto Raptors $6.2 million
Indiana Pacers $1.8 million
New York Knicks -$532,628
Sacramento Kings -$7.5 million
Denver Nuggets -$11 million
Oklahoma City Thunder -$13.3 million
Orlando Magic -$17.4 million
Latest Buzz
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As previously noted, Thursday was one of the milder days we've seen thus far. However, it wasn't without its notable deals.
Restricted free agent Tari Eason, for example, reportedly agreed to a new five-year deal with the Houston Rockets. Anfernee Simmons, meanwhile, is set to join Jaylen Brown as a member of the Philadelphia 76ers.
The list of other players who agreed to new deals on Thursday includes Daeqwon Plowden, Tyus Jones, Kyle Anderson, and Marvin Bagley III.
Right now, though, much of the leaguewide buzz is centered on LeBron James and where the 41-year-old plans to play next season. He let the Los Angeles Lakers know before free agency began that he didn't plan to return, and now we may have some clarity as to why.
According to ESPN's Dave McMenamin, there was no "rift" between James and Luka Dončić, but rather some issues between James and the Lakers that go back several seasons.
"There was more of a disconnect between James and the organization, sources said, one that started during the doomed 2021-22 season following the Russell Westbrook trade and never fully recovered."
Where James will play next is currently the big question mark hanging over the NBA.
According to ESPN's Shams Charania, James may accept a league minimum contract to join a contender. The Golden State Warriors and Cleveland Cavaliers are reportedly interested. Warriors insider Nick Friedell recently told 95.7 The Game that it's "about a 50/50 right now" between the Cavs and the Warriors.
According to The Athletic's Tony Jones, the 76ers are also interested in adding James to their new-look lineup.
To track the latest rumors, news, and grades, check out Bleacher Report's NBA Rumors Live Blog from Thursday.
