Under the new CBA, there is also a level above the luxury tax called the second apron. Next season, it will be $179.5 million, 17 million dollars over the luxury tax. Similar to the luxury tax, teams will face severe penalties if they go over the second apron.
Teams that are under the cap will have their cap holds applied to their overall cap while teams that are over the cap will not have their cap holds applied but must use any exceptions they possess. If a team uses their Bi-Annual, Non-Taxpayer Mid-Level, or Sign-and-Trade they will be considered to be hard-capped and must keept below the Luxury Tax Apron