The NBA announced Tuesday night that its salary cap for next season will be $58.679 million.
The luxury tax level will be set at $71.748 million for the 2013-14 campaign.
Due to the new collective bargaining agreement, the luxury tax penalties will be severely more punitive than in past seasons.
In previous seasons, any team whose team salary exceeded the tax level paid a $1 tax for each $1 by which it was over the tax level. The new tax rate schedule is below:
Portion of team salary $0-$4.99 million over tax level: $1.50 for $1
Portion of team salary $5-$9.99 million over tax level: $1.75 for $1
Portion of team salary $10-$14.99 million over tax level: $2.50 for $1
Portion of team salary $15-$19.99 million over tax level: $3.25 for $1
Rates increase by $0.50 for each additional $5 million of team salary above the tax level.