Projected NBA Salary Cap for 2025-26 Season Estimated at $154.6 Million, Represents 10% Increase
The upcoming 2025-26 NBA season is poised to bring significant changes to the league, with rookie salaries set to experience a significant boost due to a 10% increase in the salary cap. The new cap, set at $154.6 million, is a jump from the previous season's $140.59 million [3][4].
The first-round picks, including the No. 1 overall pick in the 2025 draft, are set to reap the benefits of this cap growth. The projected salary for the No. 1 pick in the 2025 draft is approximately $13.8 - $14 million, marking a substantial increase from previous years [1][2]. This salary is part of the rookie scale contract, which typically spans four years with a team option for a fifth year. Salaries increase incrementally each year, with a substantial raise in the fourth year if the option is exercised.
Lower picks also see a rise in their rookie contract salaries. The 30th pick, for instance, is expected to earn around $2.7 million annually [1]. The rookies’ salaries are tiered according to draft position, with the possibility to negotiate between 80% to 120% of their slot value depending on their leverage. Higher picks often secure closer to the 120% figure, while lower picks might be nearer to the 80% threshold [1].
The luxury tax for the 2025-26 season is set at $187.9 million, with the first "apron" at $195.9 million and the second apron at $207.8 million [2]. Teams that exceed the luxury tax are subject to hefty penalties, with the tax rate increasing gradually as the team's payroll grows.
Meanwhile, NBA MVP Shai Gilgeous-Alexander is eligible to sign a supermax deal worth $293 million over four years, with the deal kicking in for the 2027-28 season at 35% of the cap and a projected $65.5 million in Year 1 [5].
These increases reflect the overall 10% boost in the NBA salary cap for the 2025-26 season and will impact rookie contracts across the board [1][3][4]. The increase is attributed to the NBA's new 11-year, $77 billion media agreements with NBC, ESPN/ABC, and Amazon [6].
In addition, the minimum team salary for the 2025-26 season is $139.2 million, which represents 90% of the salary cap [7]. Teams that fail to reach the minimum payroll in the 2025-26 season must pay the league the difference, and are also prohibited from receiving a share of luxury tax payments that the NBA distributes to non-taxpaying teams [8].
The annual payout to teams increases by 33% to $137 million in the first year of the 2025-26 season [9]. The Boston Celtics and Minnesota Timberwolves paid $53 million and $90 million in taxes during the 2024-25 season respectively [10], highlighting the financial implications of these increases. The Phoenix Suns were the biggest taxpayer in the 2024-25 season, estimated to pay $152 million [11].
In conclusion, the 2025-26 NBA season will see a significant increase in rookie contract salaries, with the No. 1 overall pick set to earn approximately $13.8 - $14 million, and the 30th pick expected to earn around $2.7 million annually. These changes are a direct result of the 10% increase in the NBA salary cap for the 2025-26 season, attributed to the NBA's new media agreements.
| Draft Position | 2025-26 Projected Rookie Salary | |---------------------|------------------------------------| | No. 1 Overall Pick | Approximately $13.8 - $14 million | | 30th Pick | Around $2.7 million |
Sports enthusiasts and finance enthusiasts alike will find the 2025-26 NBA season particularly intriguing, given the rise in rookie salaries across the board. For instance, the No. 1 pick is projected to earn around $13.8 - $14 million, marking a significant increase compared to previous years. Similarly, the 30th pick is expected to earn approximately $2.7 million annually.
