The NBA has informed teams that its projected salary cap for the 2026-27 season has increased by $1 million, moving from $165 million to $166 million, according to Jake Fischer.

The adjustment reflects ongoing revenue growth tied to national media rights, ticket sales, and international partnerships. While a $1 million increase may appear modest, it impacts team flexibility in free agency and contract negotiations.

The current salary cap for the 2025-26 season is set at $154.6 million, already a record-high figure. The league expects continued year-over-year growth, creating more room for franchises to build rosters under the collective bargaining agreement.

For comparison, the salary cap was just $140.5 million in 2024-25 and $136 million the year before. In less than three seasons, teams will have gained nearly $30 million in additional cap space.

The rise gives franchises more options when constructing rosters and opens opportunities for max contract extensions. Superstars hitting free agency in 2026, including players from the 2023 and 2024 draft classes, could benefit from the expanding financial landscape.

Luxury tax thresholds are also expected to climb in line with the new projections. This provides some relief for big-market organizations already operating near or above tax levels, such as the Golden State Warriors, Boston Celtics, and Milwaukee Bucks.

The league has seen major jumps in the past, including the spike to $94 million in 2016 following the television deal with ESPN and Turner Sports. While the current increase is not as dramatic, it signals a steady revenue stream and strong financial health for the NBA.