Are F1 Driver Salaries in the Cost Cap?

No — and that single exemption explains modern F1 pay. The 2026 cost cap sits at about $215m per team, but driver salaries are explicitly excluded from it, along with the three highest-paid staff members and marketing costs.

Why the exemption exists

When the cap was introduced, teams refused to let it dictate their driver choices — the stars are the show. The result is a two-tier sport: everything about the car is rationed, while the market for the person driving it is completely free. It is why $70m for Max Verstappen can coexist with a capped aero budget at the same team.

What it does to the market

• Top pay keeps inflating: Verstappen's reported 2027–2030 extension is worth $104.9m a year.
• Teams compete for drivers with money they cannot spend on the car.
• Staff pay, which is capped, grows far more slowly — see staff salaries.
• It fuels the recurring political fight over whether a separate driver salary cap should exist; none is agreed for 2026.

Full context: how much F1 drivers make · team values and payrolls.