There’s a lot of money in professional basketball, and some teams are richer than others. It wouldn’t be fair if the teams with the most financial resources could just pay their way to a championship, year after year after year. That’s why the NBA, like many other sports, implements a salary cap system.
How does the NBA salary cap work, exactly? This article will explore how the league keeps a level playing field.
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This year the NBA salary cap is set at $154.647 million for each team. This number is set based on the previous season’s revenue and the previously agreed to collective bargaining agreement between the NBA and NBA Player’s Association.
2025-26 Salary Cap Space for all 30 NBA Teams
Below are the 2025-26 salary cap totals by allocation, cap space, cap dedicated to active players, cap dedicated to the three highest paid players on each team and dead cap, which is money owed to a player no longer on the roster.
| Rank | Team | Players | Total Cap Allocations | Cap Space | All Active | Top 3 Active | Dead Cap |
| 1 | Utah Jazz | 16 | $156,207,739 | $-1,560,739 | $141,459,190 | $74,988,612 | $10,651,561 |
| 2 | Brooklyn Nets | 19 | $157,216,307 | $-2,569,307 | $142,936,783 | $79,185,322 | $100,000 |
| 3 | Memphis Grizzlies | 17 | $171,507,315 | $-16,860,315 | $167,343,265 | $96,067,590 | $4,164,050 |
| 4 | Detroit Pistons | 14 | $173,936,660 | $-19,289,660 | $166,736,660 | $89,862,938 | – |
| 5 | Milwaukee Bucks | 18 | $174,082,288 | $-19,435,288 | $150,899,018 | $101,855,306 | $23,183,270 |
| 6 | Chicago Bulls | 18 | $176,189,831 | $-21,542,831 | $171,597,283 | $61,883,406 | – |
| 7 | Charlotte Hornets | 18 | $182,832,805 | $-28,185,805 | $176,191,763 | $81,933,760 | – |
| 8 | Atlanta Hawks | 16 | $186,569,737 | $-31,922,737 | $179,928,695 | $106,731,367 | – |
| 9 | San Antonio Spurs | 18 | $188,875,877 | $-34,228,877 | $182,234,835 | $83,096,620 | – |
| 10 | Indiana Pacers | 16 | $190,523,021 | $-35,876,021 | $181,833,485 | $109,203,024 | – |
| 11 | Oklahoma City Thunder | 16 | $193,023,046 | $-38,376,046 | $186,877,564 | $85,055,272 | – |
| 12 | Toronto Raptors | 18 | $198,697,987 | $-44,050,987 | $190,701,713 | $109,256,988 | – |
| 13 | Portland Trail Blazers | 15 | $199,409,952 | $-44,762,952 | $160,556,802 | $78,775,001 | $25,818,846 |
| 14 | Orlando Magic | 18 | $200,147,090 | $-45,500,090 | $193,471,232 | $110,387,420 | – |
| 15 | Miami Heat | 19 | $200,854,852 | $-46,207,852 | $187,324,988 | $96,319,835 | – |
| 16 | Houston Rockets | 15 | $203,378,948 | $-48,731,948 | $194,689,412 | $113,653,563 | – |
| 17 | LA Clippers | 18 | $203,604,340 | $-48,957,340 | $194,667,024 | $115,762,693 | – |
| 18 | Philadelphia 76ers | 14 | $205,175,826 | $-50,528,826 | $185,892,518 | $144,849,376 | – |
| 19 | New Orleans Pelicans | 18 | $205,674,109 | $-51,027,109 | $183,652,233 | $102,095,408 | – |
| 20 | Denver Nuggets | 16 | $206,419,471 | $-51,772,471 | $188,297,059 | $124,460,081 | – |
| 21 | Sacramento Kings | 14 | $208,397,804 | $-53,750,804 | $182,211,994 | $114,585,660 | – |
| 22 | Los Angeles Lakers | 19 | $213,190,997 | $-58,543,997 | $194,820,805 | $116,886,072 | – |
| 23 | Phoenix Suns | 15 | $214,244,003 | $-59,597,003 | $164,723,837 | $107,850,873 | $23,197,051 |
| 24 | Dallas Mavericks | 17 | $224,648,136 | $-70,001,136 | $201,537,232 | $107,359,119 | $3,211,216 |
| 25 | Boston Celtics | 15 | $224,672,528 | $-70,025,528 | $199,981,489 | $135,368,714 | – |
| 26 | New York Knicks | 19 | $233,580,876 | $-78,933,876 | $204,106,498 | $127,655,231 | – |
| 27 | Washington Wizards | 16 | $235,168,963 | $-80,521,963 | $137,704,001 | $77,937,962 | $18,384,313 |
| 28 | Minnesota Timberwolves | 14 | $241,724,401 | $-87,077,401 | $202,580,977 | $111,414,710 | – |
| 29 | Cleveland Cavaliers | 13 | $242,114,024 | $-87,467,024 | $225,863,214 | $132,234,290 | $424,672 |
| 30 | Golden State Warriors | 9 | $248,481,703 | $-93,834,703 | $170,506,402 | $139,626,124 | – |
2025-26 Total Salary Cap Allocations for all 30 NBA Teams
Thanks to rostering two of the league’s highest paid players in Steph Curry and Jimmy Butler, the Golden State Warriors lead the league in total cap allocations.
| Rank | Team | Players | Total Cap Allocations | Cap Space | All Active | Active | Dead Cap |
| 1 | Golden State Warriors | 9 | $248,481,703 | $-93,834,703 | $170,506,402 | $139,626,124 | – |
| 2 | Cleveland Cavaliers | 13 | $242,114,024 | $-87,467,024 | $225,863,214 | $132,234,290 | $424,672 |
| 3 | Minnesota Timberwolves | 14 | $241,724,401 | $-87,077,401 | $202,580,977 | $111,414,710 | – |
| 4 | Washington Wizards | 16 | $235,168,963 | $-80,521,963 | $137,704,001 | $77,937,962 | $18,384,313 |
| 5 | New York Knicks | 19 | $233,580,876 | $-78,933,876 | $204,106,498 | $127,655,231 | – |
| 6 | Boston Celtics | 15 | $224,672,528 | $-70,025,528 | $199,981,489 | $135,368,714 | – |
| 7 | Dallas Mavericks | 17 | $224,648,136 | $-70,001,136 | $201,537,232 | $107,359,119 | $3,211,216 |
| 8 | Phoenix Suns | 15 | $214,244,003 | $-59,597,003 | $164,723,837 | $107,850,873 | $23,197,051 |
| 9 | Los Angeles Lakers | 19 | $213,190,997 | $-58,543,997 | $194,820,805 | $116,886,072 | – |
| 10 | Sacramento Kings | 14 | $208,397,804 | $-53,750,804 | $182,211,994 | $114,585,660 | – |
| 11 | Denver Nuggets | 16 | $206,419,471 | $-51,772,471 | $188,297,059 | $124,460,081 | – |
| 12 | New Orleans Pelicans | 18 | $205,674,109 | $-51,027,109 | $183,652,233 | $102,095,408 | – |
| 13 | Philadelphia 76ers | 14 | $205,175,826 | $-50,528,826 | $185,892,518 | $144,849,376 | – |
| 14 | Los Angeles Clippers | 18 | $203,604,340 | $-48,957,340 | $194,667,024 | $115,762,693 | – |
| 15 | Houston Rockets | 15 | $203,378,948 | $-48,731,948 | $194,689,412 | $113,653,563 | – |
| 16 | Miami Heat | 19 | $200,854,852 | $-46,207,852 | $187,324,988 | $96,319,835 | – |
| 17 | Orlando Magic | 18 | $200,147,090 | $-45,500,090 | $193,471,232 | $110,387,420 | – |
| 18 | Portland Trail Blazers | 15 | $199,409,952 | $-44,762,952 | $160,556,802 | $78,775,001 | $25,818,846 |
| 19 | Toronto Raptors | 18 | $198,697,987 | $-44,050,987 | $190,701,713 | $109,256,988 | – |
| 20 | Oklahoma City Thunder | 16 | $193,023,046 | $-38,376,046 | $186,877,564 | $85,055,272 | – |
| 21 | Indiana Pacers | 16 | $190,523,021 | $-35,876,021 | $181,833,485 | $109,203,024 | – |
| 22 | San Antonio Spurs | 18 | $188,875,877 | $-34,228,877 | $182,234,835 | $83,096,620 | – |
| 23 | Atlanta Hawks | 16 | $186,569,737 | $-31,922,737 | $179,928,695 | $106,731,367 | – |
| 24 | Charlotte Hornets | 18 | $182,832,805 | $-28,185,805 | $176,191,763 | $81,933,760 | – |
| 25 | Chicago Bulls | 18 | $176,189,831 | $-21,542,831 | $171,597,283 | $61,883,406 | – |
| 26 | Milwaukee Bucks | 18 | $174,082,288 | $-19,435,288 | $150,899,018 | $101,855,306 | $23,183,270 |
| 27 | Detroit Pistons | 14 | $173,936,660 | $-19,289,660 | $166,736,660 | $89,862,938 | – |
| 28 | Memphis Grizzlies | 17 | $171,507,315 | $-16,860,315 | $167,343,265 | $96,067,590 | $4,164,050 |
| 29 | Brooklyn Nets | 19 | $157,216,307 | $-2,569,307 | $142,936,783 | $79,185,322 | $100,000 |
| 30 | Utah Jazz | 16 | $156,207,739 | $-1,560,739 | $141,459,190 | $74,988,612 | $10,651,561 |
What is the NBA Salary Cap?
Understanding NBA payroll and salaries starts with understanding the NBA salary cap.
The NBA’s salary cap is the maximum amount of money that a team is allowed to spend on player payrolls to attract and retain talent on its roster.
How Does the NBA Salary Cap Work?
The NBA’s salary cap is intended to work in a way similar to salary caps of other sports, like MLB baseball, NFL football, WNBA basketball and NHL hockey: To ensure a level playing field across the league’s teams, so a single team with loads of money can’t just dominate play by simply outspending their rivals to stack their team.
Some sports have a so-called “hard” salary cap (NHL), where teams cannot exceed the limit under any circumstances. The NBA’s cap is considered a “soft” cap, which gives teams wiggle room to creatively compensate players. Major League Soccer (MLS) and the MLB also have soft caps.
The total amount of money a team has already allocated towards player salaries under the cap is known as the team’s “cap hit” while the amount that team has left to spend is known as its “cap space.”
Teams must spend at least 90% of their salary cap each season to ensure their players are fairly paid. If the teams go over their salary cap, they’re subject to a “luxury tax” penalty on every dollar they spend over the cap. Teams that routinely exceed the cap season-to-season must pay additional penalties.
If a team’s salary spending exceeds the “second apron,” which is currently set at $188 million, the franchise faces additional restrictions on the ways that it can improve its roster. Those penalties can include future draft pick forfeiture.
Whether a team takes strategic advantage of the “soft” nature of the NBA salary cap despite these risks depends on whether they view the future downsides as worth the chance at a title now.
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Frequently Asked Questions
What is the current NBA salary cap?
The NBA salary cap is set at $154.647 million for the 2025-26 season.
What is the NBA salary cap for?
The NBA salary cap is designed to ensure a level playing field by limiting the maximum amount of money a team can spend on player salaries.
When did the NBA salary cap start?
The NBA salary cap was first implemented during the 1984-85 season.
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