The NHL salary cap is climbing faster than at any point in league history. On May 6, 2026, the league informed teams that the upper limit for the 2026-27 season will rise to $104 million — an $8.5 million jump from the $95.5 million cap in 2025-26.[reference:9]
This is the third consecutive year of significant cap growth, and it's not stopping: the cap is projected to reach $113.5 million in 2027-28. For players, agents, and front offices, this new economic era brings big opportunities — and a few hidden traps.[reference:10]
The NHL also set the salary cap floor at $76.9 million, meaning teams like the San Jose Sharks — who are currently well below that threshold — must spend at least $14.5 million just to reach the minimum.[reference:11][reference:12]
The maximum player salary (20% of the team cap) will be $20.8 million for the 2026-27 season.[reference:13]
The highest cap hit in the league currently belongs to Minnesota Wild star Kirill Kaprizov, whose record-setting $136 million extension carries a $17 million annual cap hit — still well below the new max.[reference:14]
A rising cap should mean a free-agent spending spree. But the 2026 UFA class is unusually weak. Alex Tuch, Sergei Bobrovsky, and Darren Raddysh headline a group that isn't expected to command massive bidding wars.[reference:15]
This creates an interesting dynamic: teams have money to spend, but the players available may not command the kind of contracts that a $104 million cap would suggest. The result? Mid-tier players may get overpaid on short-term deals, while teams with cap space — like the Maple Leafs, Red Wings, and Sharks — position themselves for bigger moves in 2027 and beyond.[reference:16][reference:17]
For example, NHL analyst Kevin Papetti suggests the Leafs could land defenseman Dougie Hamilton on a two-year, $18 million deal ($9M AAV). The logic: "The Leafs have plenty of cap space, and they don't have to give out any significant raises in the near future. Short-term, high AAV deals make sense this offseason."[reference:18]
For all the celebration around the rising cap, one uncomfortable reality remains: escrow. The NHL withholds a percentage of every player's paycheck — typically around 10% on average — to ensure the 50-50 revenue split between players and owners.[reference:19]
Here's what many players don't realize: in most cases, they never see this money again. A $9 million salary minus 10% escrow means $900,000 withheld. If league revenues don't exceed the players' share, that money is gone permanently.[reference:20]
The rising cap is good news — it means hockey-related revenue is growing. But escrow remains a silent deduction that reduces every NHL player's actual take-home pay, regardless of how big their contract looks on paper.
Let's walk through a quick example. A player signs a $9 million per year deal with a Canadian team like the Maple Leafs:
• Federal tax (33% top rate in Canada): ~$2.97M
• Provincial tax (Ontario): ~$1.0M
• Agent commission (5%): $450,000
• NHL Escrow (10% average): $900,000
• Jock tax on away games in U.S. states: ~$180,000-270,000
Estimated take-home: approximately $3.5-4 million — less than half the $9 million headline figure. And this doesn't account for the unique cross-border tax complications that Canadian-team players face when filing in both Canada and multiple U.S. states.
The cap spike's biggest impact may be on the next generation of superstars. Connor Bedard's contract talks with the Blackhawks are expected to ramp up following the cap announcement. With the ceiling at $104 million and projected to hit $113.5 million, Bedard's next deal could reset the market for elite talent.[reference:21]
Kirill Kaprizov's $17 million AAV looked enormous when signed. In two years, it may look like a bargain as the max player salary climbs above $20 million and teams have more room to maneuver.
See how your NHL contract actually breaks down after taxes, escrow, and agent fees:
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