How does the NBA salary cap work, including the aprons?
Short answer
The NBA has a soft salary cap: a team can exceed it through exceptions. For 2026-27 the cap is $164,961,000, the tax line is $200,428,000, the first apron is $209,015,000 and the second apron is $221,686,000. Each level above the cap removes tools and adds costs.
What are the NBA salary cap levels for 2026-27?
There are five numbers. The NBA set them for 2026-27, per the NBA.
| Level | 2026-27 amount | What it does |
|---|---|---|
| Minimum team salary | $148,465,000 | A team below it pays the shortfall to the league |
| Salary cap | $164,961,000 | Above it, a team signs players only through exceptions |
| Tax level | $200,428,000 | Above it, a team pays a tax |
| First apron | $209,015,000 | Several signing and trade tools, among others, are blocked if they would take payroll above it |
| Second apron | $221,686,000 | Above it, the strictest limits apply |
The same figures appear in Hoops Rumors. The NBA resets all five levels every year, so the figures above apply to 2026-27 only. The minimum salary scale below the cap is in the minimum salary guide.
Why is the NBA cap called a soft cap?
Because a team can go above it. The cap limits the money a team can spend on free agents when it is under the line, and the rest of the league's rules decide how a team above it adds players. The CBA lets an over-the-cap team re-sign its own players, use the mid-level exceptions, sign minimum contracts and take in trades, per the NBA collective bargaining agreement. The list of exceptions is in the exceptions guide.
A team under the cap can use cap space to sign free agents outright. Once it has used the space, it can add players through the exceptions it still has.
What is the luxury tax and how much is it?
A team whose payroll is above the tax level pays the NBA a tax, per the CBA (Article VII, Section 2(d)). The tax is charged in brackets above the line. Each bracket is a multiple of the CBA's "tax bracket amount," which is $5 million scaled by the cap against the 2023-24 cap. By that formula the 2026-27 bracket is about $6.06 million, the same ratio that produces the $6,064,000 taxpayer mid-level (a calculation from the CBA formula and the NBA's cap).
The rates in the CBA, starting in 2025-26:
| Amount above the tax level | Standard rate | Repeater rate |
|---|---|---|
| First bracket | $1.00 | $3.00 |
| Second bracket | $1.25 | $3.25 |
| Third bracket | $3.50 | $5.50 |
| Fourth bracket | $4.75 | $6.75 |
The repeater rates apply to a team whose payroll was above the tax level in three or more of the four prior seasons, per the CBA. Beyond the fourth bracket, the rate rises by $0.50 for each additional bracket.
What does the first apron block?
It blocks a team from using several tools once its payroll would go above $209,015,000. The CBA's transaction table lists them. A team may not use the bi-annual exception or the non-taxpayer mid-level exception, take a player through an expanded traded player exception, or acquire a player by a standard trade exception after the season in which it arose, if the move would take its payroll above the first apron, per the CBA (Article VII, Section 2(e)). A team that makes one of those moves cannot go above the apron for the rest of that salary cap year, which turns the apron into a hard cap for the team.
A team can still sign minimum contracts above the first apron. The first apron entry in the glossary explains the term.
What does the second apron block?
It adds a second set of limits above $221,686,000. A team may not use the taxpayer mid-level exception, pay cash in a trade, or use an aggregated traded player exception if the move would take its payroll above the second apron, per the CBA's table. It also affects draft picks. A team above the second apron at the start of its last regular season game loses the right to trade its first-round pick in a draft seven years out, and if it is above the line in two of the next four seasons, that pick moves to the end of the first round, per the CBA (Article VII, Section 2(f)). The second apron entry has the short version.
The taxpayer mid-level exception is the only mid-level exception left to a team above the first apron, and using it caps the team at the second apron.
How do the levels shape a contract?
They decide what a team can pay and what it must give up to keep the roster together. The contracts of the highest-paid players sit inside this structure, because every extension changes the payroll the levels are measured against. A team that wants to keep a star and add depth has to choose which line it is willing to cross.
- Under the cap. Cap space is the most flexible tool, and the room exception applies to a team below the cap.
- Over the cap, under the first apron. The non-taxpayer mid-level exception and the bi-annual exception are available.
- Between the aprons. The taxpayer mid-level exception replaces them.
- Above the second apron. Minimum contracts and the team's own free agents are the main tools left.
What should a player and an agent look at?
Agents notice that the payroll level of a team in July tells them which offers are possible before a team says a number. A contender above the first apron cannot offer the non-taxpayer mid-level, and a team with space can offer more years or more money than a team over the line. Ask each team which level it expects to be at on the day of signing, since the limits apply to the payroll after the move.
The levels also decide where a restricted free agent can sign, as the offer sheet guide shows.
Sources
- NBA: NBA sets salary cap for 2026-27 season
- 2023 NBA Collective Bargaining Agreement (Article VII, Sections 2, 6 and 8)
- Hoops Rumors: Salary cap, tax line set for 2026-27 NBA season
Data current as of October 17, 2026. Figures are linked where each one appears. Leagues and regulators update these rules; check the source before relying on a number.
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