Few figures illustrate the NBA’s healthy financial state better than the teams’ salary cap. In a steady and pronounced rise that has been ongoing for several years now, the figure shows how, as revenues grow, teams’ ability to invest in their rosters also increases—and at a pace faster than the league had anticipated.
In the initial projections, the NBA set the salary cap for the 2027-28 season at around $174 million, which would represent a 5.5% increase from the figure already established for 2026-27 ($164.9 million). However, according to Fred Katz, a journalist from The Athletic, in a recent memo he informed teams that the rise has finally been 6.7%, so the spending limit will be set at $176 million.
The NBA has informed teams of its updated salary cap projections for the 2027-28 season, league sources tell @TheAthletic:
• $176 million salary cap
• $213 million luxury tax line
The new projection comes in $2 million higher than the league’s last one.— Fred Katz (@FredKatz) September 12, 2026
This indirectly represents a modest increase in the salaries of some players, since maximum contracts, established as a percentage of the salary cap (25%, 30% or 35%), are affected by this rise. Thus, players with max or super-max contracts in effect next season will benefit from this measure, which will entail a small rise in their pay.
But not only the top earners will benefit from it. Given that minimum contracts and other salary exceptions are also calculated by setting a percentage of the cap, this makes some of the contracts to be signed next summer somewhat more valuable.
Moreover, knowing the salary cap also reveals the limits that sit above it. The luxury tax will be set at $213 million, while the first and second apron grow to $223 million and $236.5 million respectively.
