The NBA informed teams Wednesday that it has updated its salary cap projections for the 2023-24 season, sources confirmed to ESPN.

In a memo sent to teams, the league said the salary cap is projected to be $136 million and the luxury tax is projected to be $165 million -- higher by $2 million and $3 million, respectively, than initial projections sent in September before the season began.

The league stressed that both numbers are still projections and that the final figures won't be determined until the NBA's annual financial audit is completed later this month before the new league year begins June 30.

Under the new collective bargaining agreement with the National Basketball Players Association, which goes into effect starting next season, the salary cap can rise a maximum of 10% per season.

With the 2022-23 salary cap being set at $123.655 million, the maximum the cap and tax could be for the 2023-24 campaign will be $136.021 million and $165.294 million, respectively.