Pickens, 24, set career-highs across the board last season with 93 receptions and nine touchdowns while also ranking third in the entire NFL with 1,429 receiving yards, earning him Second-Team All-Pro honours.
The tag will pay Pickens $27.298 million for the 2026 season.
However, it's the non-exclusive tag, which means that Pickens is still able to sign elsewhere should he choose to do so. Other teams will have to present an offer sheet. After such, the Cowboys will have five days to match that team's offer sheet. Should another team sign Pickens, the Cowboys will receive "draft-choice compensation equivalent to two first-round picks," according to the league.
The Cowboys are now $66 million over the NFL salary cap. However, the team will receive an additional $22 million in cap space after the NFL announced the 2026 salary cap will be set at $301.2 million, an increase from last year's $279.2 million.
Dallas will also have to restructure contracts to get below the cap as well, including deals such as quarterback Dak Prescott and star receiver CeeDee Lamb, according to Cowboys reporter Todd Archer.
The Cowboys finished this past season with a 7-9-1 record, ultimately missing the playoffs.
They have the 12th overall pick in the first round of the upcoming NFL Draft that begins on April 23rd.