The NBA announced Sunday that the salary cap for the 2024-25 season will be $140.588 million, per TNT and Bleacher Report's Chris Haynes.

Haynes also reported that the tax level has been set at $170.814 million. The Athletic's Mike Vorkunov reported that the first apron is now $178.132 million and the second apron is $188.931.

The refigured salary cap comes ahead of NBA free agency, which begins at midnight on July 1.

Last season, the league set the salary cap at $136.021 million and the tax level at $165.294 million. The first apron level for the 2023-24 season was $172.346 million and the second apron level was $182.794

It is common to see the salary cap increase slightly every year, so it's no surprise to see teams get a little more breathing room heading into free agency. Under the league's new collective bargaining agreement, which was put into place last July, the salary cap cannot decrease year-over-year, but also can't increase by more than 10 percent annually.

With the NBA on the verge of historic TV deals, it's likely the salary cap will continue to climb in the coming years.

As it stands now, Spotrac projects just seven teams to be about the cap: the Philadelphia 76ers, Detroit Pistons, Orlando Magic, Utah Jazz, Oklahoma City Thunder, San Antonio Spurs and Charlotte Hornets.

As free agency gets into full swing, it's likely a handful of those teams will end up being over the cap.

Both the 76ers and Magic are reportedly planning to make a push for free agent Paul George, and landing the veteran would certainly put them well above the cap. Per Yahoo Sports' Jake Fischer, Philadelphia and Orlando are prepared to offer George a four-year max contract.

George is just one of many free agents looking for big contracts this offseason, so teams will be looking to get their money's worth when it comes to the new salary cap.