The salary cap for the 2025/26 NBA league year has officially been set, with the league announcing that the cap will be $154,647,000, a 10% increase on last year’s number.
Under the league’s current Collective Bargaining Agreement, the values of the mid-level, room, and bi-annual exceptions are tied to the salary cap and the percentage that it shifts in a given year. Here’s how that math works:
- Non-taxpayer mid-level exception: Worth 9.12% of salary cap.
- Taxpayer mid-level exception: Increases at the same rate as the salary cap.
- Room exception: Worth 5.678% of the salary cap.
- Bi-annual exception: Worth 3.32% of the salary cap.
Listed below are the maximum annual and total values of each of these exceptions, along with a brief explanation of how they work and which teams will have access to them. For more information, check out glossary entries on the mid-level exception and the bi-annual exception.
Mid-Level Exception (Non-Taxpayer):
Year | Salary |
---|---|
2025/26 | $14,104,000 |
2026/27 | $14,809,200 |
2027/28 | $15,514,400 |
2028/29 | $16,219,600 |
Total | $60,647,200 |
The non-taxpayer mid-level exception is the primary tool available for over-the-cap teams to add free agents. As long as a team hasn’t dipped below the cap to use cap space and doesn’t go over the first tax apron ($195,945,000) at all, it can use this MLE, which runs for up to four years with 5% annual raises.
This exception can also be used to acquire players via trade or waiver claim.
Mid-Level Exception (Taxpayer):
Year | Salary |
---|---|
2025/26 | $5,685,000 |
2026/27 | $5,969,250 |
Total | $11,654,250 |
This lesser form of the mid-level exception is capped at two years and can only be used to sign free agents, not to acquire players via trade or waiver claim. It includes a maximum raise of 5% for the second season.
This exception is essentially available to teams who expect their total salaries to fall between the first tax apron and the second apron ($207,824,000). It’s not available to teams above the second tax apron, so a team that does use it becomes hard-capped at that second apron. A team that uses more than $5,685,000 of its mid-level exception will be hard-capped at the first apron.
Room Exception:
Year | Salary |
---|---|
2025/26 | $8,781,000 |
2026/27 | $9,220,050 |
2027/28 | $9,659,100 |
Total | $27,660,150 |
Although this is also a mid-level exception of sorts, it’s colloquially known as the “room” exception, since it’s only available to teams that go below the cap and use their cap room.
If a club goes under the cap, it loses its full mid-level exception, but gets this smaller room exception, which allows the team to go over the cap to sign a player once the team has used up all its cap space.
The room exception can be used to sign players for up to three years, with 5% annual raises. It can also be used to acquire players via trade or waiver claim.
Bi-Annual Exception:
Year | Salary |
---|---|
2025/26 | $5,134,000 |
2026/27 | $5,390,700 |
Total | $10,524,700 |
The bi-annual exception, as its name suggests, is only available to teams once every two years. Of the NBA’s 30 clubs, only two – the Rockets and Clippers – used it in 2024/25, so they won’t have access to it in ’25/26. The league’s other 28 teams could all theoretically use it this season.
Still, even if a team didn’t use its BAE in ’24/25, that club doesn’t necessarily have access to it for the coming year. As is the case with the non-taxpayer MLE, this exception disappears once a team goes under the cap to use room. It’s also not available to teams over the first tax apron — using the BAE creates a hard cap at that apron.
The BAE can be used to sign players for up to two years, with a 5% raise after year one. It can also be used to acquire players via trade or waiver claim.
I’m guessing the Nets are currently the only team that could use the “room exception.” However, they may need to cross the cap line to re-sign Cam Thomas.
Grizzlies will use it (Ty Jerome). Maybe Pistons too, depending on whether or not they end up operating over or under the cap.