The National Basketball Association's salary cap for the 2007-08 season will be $55.6 million.

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

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