The new salary cap goes into effect on Wednesday when a 10-day moratorium ends and teams can begin signing free agents and making trades.

League officials said the tax level for the upcoming season will be $67.9 million, meaning any team whose salary exceeds that figure will have to pay a so-called luxury tax.

Teams whose salary exceeds $67.9 million will pay a $1 tax for each $1 it goes over the amount.

Last season the salary cap was set at $53.1 million and the tax level was $65.4 million.

The salary cap is calculated as a percentage of the NBA's revenue from the previous season.