Mid-Level and Bi-Annual Exceptions Projected for 2026-27 NBA Season
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Projected figures for the NBA’s 2026-27 salary-cap exceptions suggest sizable jumps across all versions of the mid-level exception and the bi-annual exception, according to data released on Aug. 12, 2025.
Projected Salary Cap
The league’s most recent guidance points to a 7% cap increase, bringing the 2026-27 cap estimate to $165,472,000. Because each exception is tied to the cap, those percentages drive the following dollar amounts.
Mid-Level Exception (MLE)
Standard/non-taxpayer MLE (available to over-the-cap teams below the first tax apron) equals 9.12% of the cap and can run four years with 5% annual raises. Using the $165.472 million cap, the deal would look like this:
2026-27: $15,091,000
2027-28: $15,845,550
2028-29: $16,600,100
2029-30: $17,354,650
Total: $64,891,300
Taxpayer MLE (for teams between the first and second tax aprons, or those wanting room to cross the first apron later) also carries 5% raises but is limited to two years:
2026-27: $6,083,000
2027-28: $6,387,150
Total: $12,470,150
Room MLE (for teams that spend cap space, then operate above the cap) can run three years:
2026-27: $9,396,000
2027-28: $9,865,800
2028-29: $10,335,600
Total: $29,597,400
Using either the standard MLE or the room MLE hard-caps a club at the first tax apron for the remainder of the league year. Deploying the taxpayer MLE triggers a hard cap at the second apron.
Bi-Annual Exception (BAE)
Reserved for over-the-cap teams below the first apron—and available only in alternate years—the BAE can cover two seasons with a 5% raise after Year 1:
2026-27: $5,494,000
2027-28: $5,768,700
Total: $11,262,700
The Los Angeles Lakers, Utah Jazz, and Washington Wizards cannot use the BAE in 2026-27 after deploying it in 2025-26.
Teams may use the non-taxpayer MLE or room MLE, but not the taxpayer MLE, to absorb a player in a trade or waiver claim; the taxpayer version is limited to signing free agents. All figures remain estimates until the NBA sets the official 2026-27 salary cap next summer.
Source: Hoops Rumors
