Bethesda has announced the upcoming patch for Skyrim that will ultimately remove the level cap, finally. In Skyrim, you can raise the level of certain skills to 100, that was the cap for skills. For your overall level, the cap was at 81. Update 1.9 effectively removes that cap, allowing you to freely level up. Notice the level in the image below is 106.

Bethesda also implemented a system similar to that of Call of Duty's prestige system. If you have a certain skill like pick pocketing at level 100, you now have the choice to upgrade that skill to the "Legendary" status. Once upgraded, this will reset your skill level down to level 15 and remove all the perks. Allowing you to reassess your skills appropriately.

The update will be available at the end of the month for PC and consoles. However, if you're on the PC, you can participate in the beta now. All you have to do is go to your Steam Library, right click on Skyrim, select properties then go to the "beta" tab and opt in to beta testing. The 1.9 update brings a lot more changes than just removing the level cap, you can check the full list here.