The National Basketball Association has announced that the salary cap for next season will be US$57.7 million.

The luxury tax level has been pegged at US$69.92 million. Any team whose total wage is more that amount will have to pay US$1 tax for every US$1 that exceeds the luxury tax cap.

Last season's salary cap was US$58.8 million, with the luxury tax being US$71.15 million. This year's decrease in the salary cap comes despite a 2.5% increase in league revenue, with the cap being the result of the formula used under the terms of the collective bargaining agreement.

The new salary cap and tax went into effect at midnight on July 8, when clubs were able to begin signing free agents and making trades.

The mid-level exception is $5.854 million for the 2009-10 season and the minimum team salary, which is set at 75% of the Salary Cap, is $43.275 million.