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 $164.961 million for each team. This number is based on projected league revenue and the previously agreed-upon collective bargaining agreement between the NBA and the National Basketball Players Association.
The NBA also sets separate spending thresholds for the luxury tax and first and second aprons, which determine the financial penalties and roster-building restrictions teams may face.
2026–27 Salary Cap Space for All 30 NBA Teams
Below are the 2026–27 salary cap totals by team, including total committed salary and the amount each team sits above or below the league’s salary cap.
The figures are estimates and may change as teams finalize their rosters, sign players and make trades throughout the season.
| Rank | Team | Players | Total Cap Allocations | Cap Space | All Active | Active | Dead Cap |
| 1 | Memphis Grizzlies | 17 | $161,113,773 | $3,847,227 | $126,892,489 | $61,056,658 | $34,221,284 |
| 2 | Brooklyn Nets | 17 | $163,133,278 | $1,827,722 | $160,056,358 | $89,639,484 | – |
| 3 | Chicago Bulls | 18 | $165,770,083 | $-809,083 | $164,694,624 | $69,820,738 | $1,075,459 |
| 4 | Charlotte Hornets | 18 | $176,997,392 | $-12,036,392 | $165,507,734 | $68,212,455 | $9,040,237 |
| 5 | Utah Jazz | 17 | $188,400,680 | $-23,439,680 | $180,515,680 | $109,792,166 | – |
| 6 | Milwaukee Bucks | 19 | $194,932,853 | $-29,971,853 | $168,320,596 | $80,074,316 | $21,977,720 |
| 7 | Los Angeles Lakers | 18 | $200,897,322 | $-35,936,322 | $200,897,322 | $120,837,371 | – |
| 8 | Portland Trail Blazers | 16 | $203,547,663 | $-38,586,663 | $191,825,441 | $97,055,797 | $268,032 |
| 9 | Detroit Pistons | 17 | $204,147,599 | $-39,186,599 | $190,682,317 | $107,266,271 | $3,815,861 |
| 10 | LA Clippers | 18 | $204,727,503 | $-39,766,503 | $183,211,907 | $98,827,346 | $2,150,917 |
| 11 | Dallas Mavericks | 17 | $207,036,373 | $-42,075,373 | $179,643,983 | $76,567,910 | $10,871,533 |
| 12 | Boston Celtics | 19 | $207,991,480 | $-43,030,480 | $198,722,406 | $142,930,946 | – |
| 13 | Indiana Pacers | 18 | $208,485,050 | $-43,524,050 | $206,299,934 | $118,191,388 | – |
| 14 | New Orleans Pelicans | 18 | $212,202,566 | $-47,241,566 | $196,221,049 | $108,996,223 | $148,828 |
| 15 | Houston Rockets | 16 | $212,396,723 | $-47,435,723 | $200,413,923 | $104,544,641 | – |
| 16 | Toronto Raptors | 18 | $214,237,151 | $-49,276,151 | $201,188,888 | $124,554,690 | – |
| 17 | Sacramento Kings | 17 | $216,346,916 | $-51,385,916 | $193,946,825 | $119,350,094 | $3,333,333 |
| 18 | Oklahoma City Thunder | 18 | $216,464,608 | $-51,503,608 | $214,279,492 | $123,286,650 | – |
| 19 | Philadelphia 76ers | 19 | $218,904,967 | $-53,943,967 | $207,186,472 | $156,492,622 | – |
| 20 | Miami Heat | 18 | $220,893,370 | $-55,932,370 | $206,189,256 | $138,114,510 | – |
| 21 | Orlando Magic | 17 | $222,499,858 | $-57,538,858 | $209,865,321 | $122,441,030 | $8,000,000 |
| 22 | New York Knicks | 18 | $223,788,453 | $-58,827,453 | $218,412,232 | $137,318,249 | – |
| 23 | Cleveland Cavaliers | 18 | $226,115,902 | $-61,154,902 | $206,725,846 | $130,858,875 | $2,244,109 |
| 24 | Atlanta Hawks | 18 | $230,052,891 | $-65,091,891 | $193,511,432 | $76,000,000 | $5,158,080 |
| 25 | San Antonio Spurs | 18 | $231,173,962 | $-66,212,962 | $198,279,967 | $94,988,300 | – |
| 26 | Denver Nuggets | 18 | $235,008,821 | $-70,047,821 | $217,460,512 | $141,116,779 | $666,667 |
| 27 | Washington Wizards | 19 | $240,815,634 | $-75,854,634 | $192,013,104 | $122,692,866 | – |
| 28 | Phoenix Suns | 18 | $242,376,222 | $-77,415,222 | $193,028,455 | $116,155,981 | $23,197,051 |
| 29 | Minnesota Timberwolves | 18 | $252,638,472 | $-87,677,472 | $212,875,954 | $126,195,144 | $2,055,000 |
| 30 | Golden State Warriors | 18 | $254,337,411 | $-89,376,411 | $220,838,432 | $147,098,502 | – |
2026–27 Total Salary Cap Allocations for all 30 NBA Teams
Thanks to rostering two of the league’s highest-paid players in Stephen Curry and Jimmy Butler, the Golden State Warriors lead the league in total cap allocations at $254.3 million. The Minnesota Timberwolves follow closely behind at $252.6 million, while the Phoenix Suns rank third at $242.4 million.
| Rank | Team | Players | Total Cap Allocations | Cap Space | All Active | Active | Dead Cap |
| 1 | Golden State Warriors | 18 | $254,337,411 | $-89,376,411 | $220,838,432 | $147,098,502 | – |
| 2 | Minnesota Timberwolves | 18 | $252,638,472 | $-87,677,472 | $212,875,954 | $126,195,144 | $2,055,000 |
| 3 | Phoenix Suns | 18 | $242,376,222 | $-77,415,222 | $193,028,455 | $116,155,981 | $23,197,051 |
| 4 | Washington Wizards | 19 | $240,815,634 | $-75,854,634 | $192,013,104 | $122,692,866 | – |
| 5 | Denver Nuggets | 18 | $235,008,821 | $-70,047,821 | $217,460,512 | $141,116,779 | $666,667 |
| 6 | San Antonio Spurs | 18 | $231,173,962 | $-66,212,962 | $198,279,967 | $94,988,300 | – |
| 7 | Atlanta Hawks | 18 | $230,052,891 | $-65,091,891 | $193,511,432 | $76,000,000 | $5,158,080 |
| 8 | Cleveland Cavaliers | 18 | $226,115,902 | $-61,154,902 | $206,725,846 | $130,858,875 | $2,244,109 |
| 9 | New York Knicks | 18 | $223,788,453 | $-58,827,453 | $218,412,232 | $137,318,249 | – |
| 10 | Orlando Magic | 17 | $222,499,858 | $-57,538,858 | $209,865,321 | $122,441,030 | $8,000,000 |
| 11 | Miami Heat | 18 | $220,893,370 | $-55,932,370 | $206,189,256 | $138,114,510 | – |
| 12 | Philadelphia 76ers | 19 | $218,904,967 | $-53,943,967 | $207,186,472 | $156,492,622 | – |
| 13 | Oklahoma City Thunder | 18 | $216,464,608 | $-51,503,608 | $214,279,492 | $123,286,650 | – |
| 14 | Sacramento Kings | 17 | $216,346,916 | $-51,385,916 | $193,946,825 | $119,350,094 | $3,333,333 |
| 15 | Toronto Raptors | 18 | $214,237,151 | $-49,276,151 | $201,188,888 | $124,554,690 | – |
| 16 | Houston Rockets | 16 | $212,396,723 | $-47,435,723 | $200,413,923 | $104,544,641 | – |
| 17 | New Orleans Pelicans | 18 | $212,202,566 | $-47,241,566 | $196,221,049 | $108,996,223 | $148,828 |
| 18 | Indiana Pacers | 18 | $208,485,050 | $-43,524,050 | $206,299,934 | $118,191,388 | – |
| 19 | Boston Celtics | 19 | $207,991,480 | $-43,030,480 | $198,722,406 | $142,930,946 | – |
| 20 | Dallas Mavericks | 17 | $207,036,373 | $-42,075,373 | $179,643,983 | $76,567,910 | $10,871,533 |
| 21 | LA Clippers | 18 | $204,727,503 | $-39,766,503 | $183,211,907 | $98,827,346 | $2,150,917 |
| 22 | Detroit Pistons | 17 | $204,147,599 | $-39,186,599 | $190,682,317 | $107,266,271 | $3,815,861 |
| 23 | Portland Trail Blazers | 16 | $203,547,663 | $-38,586,663 | $191,825,441 | $97,055,797 | $268,032 |
| 24 | Los Angeles Lakers | 18 | $200,897,322 | $-35,936,322 | $200,897,322 | $120,837,371 | – |
| 25 | Milwaukee Bucks | 19 | $194,932,853 | $-29,971,853 | $168,320,596 | $80,074,316 | $21,977,720 |
| 26 | Utah Jazz | 17 | $188,400,680 | $-23,439,680 | $180,515,680 | $109,792,166 | – |
| 27 | Charlotte Hornets | 18 | $176,997,392 | $-12,036,392 | $165,507,734 | $68,212,455 | $9,040,237 |
| 28 | Chicago Bulls | 18 | $165,770,083 | $-809,083 | $164,694,624 | $69,820,738 | $1,075,459 |
| 29 | Brooklyn Nets | 17 | $163,133,278 | $1,827,722 | $160,056,358 | $89,639,484 | – |
| 30 | Memphis Grizzlies | 17 | $161,113,773 | $3,847,227 | $126,892,489 | $61,056,658 | $34,221,284 |
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 amount of money each team can spend on player salaries under the league’s standard payroll limit. However, because the NBA uses a soft salary cap, teams can exceed that amount under certain circumstances to attract and retain talent on their rosters.
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, like the NFL and NHL, which generally prevents teams from exceeding the spending limit. The NBA’s cap is considered a “soft” cap, which gives teams some flexibility to exceed the limit through certain exceptions. MLB, meanwhile, does not have a traditional salary cap, instead using a luxury tax system to discourage excessive spending.
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 the salary cap, or $148.465 million for the 2026–27 season, by the start of the regular season. While teams can exceed the salary cap through certain exceptions, spending above the league’s luxury tax threshold of $200.428 million triggers additional financial penalties. Teams that repeatedly exceed the luxury tax threshold face even higher tax rates.
If a team’s salary spending exceeds the “second apron,” which is set at $221.686 million for the 2026–27 season, the franchise faces additional restrictions on how it can improve its roster. These restrictions can include limitations on trades, player signings and future draft picks.
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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