Max Verstappen is the highest paid F1 driver as of 2024, with a reported annual salary of approximately $55 million from Red Bull Racing
Verstappen's pay package includes his base salary plus performance bonuses tied to race wins and championship points. The exact figure varies year to year depending on contract terms and how many races he wins, but his deal with Red Bull is the largest in the sport. The second and third highest earners are typically Lewis Hamilton and Charles Leclerc, though their salaries shift as contracts renew and teams adjust their budgets.
F1 driver salaries are not public information — teams and drivers keep these numbers confidential. The figures reported by motorsports media outlets like Motorsport.com and Autosport come from sources close to negotiations or are educated estimates based on team spending caps and known deal structures. This means reported numbers can vary by source and should be treated as approximate rather than official.
Key Takeaways
- Max Verstappen earns roughly $55 million annually from Red Bull Racing, making him the sport's highest paid driver as of 2024.
- F1 driver salaries consist of a base salary plus performance bonuses, so the total varies depending on race results and championship points.
- Exact salary figures are kept private by teams and drivers, so all reported numbers are estimates from motorsports media sources.
- The top earners change as contracts expire and teams renegotiate, so the ranking shifts every few years when major deals are signed.
- Teams operate under a cost cap that limits total spending, which affects how much money is available for driver salaries versus car development.
How F1 Driver Salaries Are Structured
An F1 driver's total compensation has two main parts: a may provide base salary and performance bonuses. The base salary is what the team commits to pay regardless of results. Performance bonuses are additional payments tied to finishing position in races, points scored in the championship, or winning specific races.
Some contracts also include appearance fees, sponsorship rights, and bonuses for team achievements like winning the Constructors' Championship. A driver might earn $40 million in base salary but add another $15 million through bonuses if the team wins the championship and the driver finishes in the top three of the standings. This structure means two drivers on the same team can have very different total earnings in a given year depending on their results.
Why Top Drivers Earn So Much More Than Others
The gap between the highest and lowest paid drivers in F1 is enormous — sometimes 50 to 100 times larger. This happens because teams pay for three things: proven performance, marketability, and championship potential. A driver who has won multiple championships or is currently leading the standings can demand a much higher salary because winning a championship brings sponsorship money and prestige to the team.
Newer drivers or those in their first or second F1 season typically earn $1 million to $5 million annually, while mid-field drivers earn $5 million to $15 million. The top tier — drivers with championship experience or those in top teams — earn $20 million to $55 million. Teams also consider how much a driver can attract sponsors and media attention. A driver with a large social media following or strong appeal in key markets like the United States or Asia can command higher pay because they bring additional revenue to the team.
The Cost Cap and Its Effect on Driver Salaries
Since 2021, F1 has operated under a cost cap that limits how much each team can spend per season on car development, staff, and operations. The cap was set at $140 million in 2021 and has increased slightly each year. However, driver salaries are partially exempt from this cap — teams can spend more on driver pay than the cap allows, but there are limits to how much exemption applies.
This creates a trade-off for teams: money spent on a top driver's salary is money not spent on aerodynamic development, engine upgrades, or hiring engineers. Teams with the largest budgets and the most sponsorship income can afford to pay top drivers more while still investing heavily in the car. This is why Red Bull, Mercedes, and Ferrari — the teams with the most resources — employ the highest paid drivers.
How Driver Salaries Have Changed in Recent Years
Driver salaries have risen significantly since the cost cap was introduced. Before 2021, some top drivers earned $20 million to $30 million annually, but the introduction of the cost cap actually pushed salaries higher for elite drivers because teams needed to find their top talent while managing overall spending. Verstappen's current deal, signed in 2022, reflects this trend — it is substantially larger than his previous contract.
Lewis Hamilton's move from Mercedes to Ferrari in 2025 is expected to result in a salary increase, though the exact figure has not been disclosed. Charles Leclerc's salary at Ferrari has also grown as the team competes for championships. Meanwhile, drivers at smaller teams or those early in their careers have seen more modest salary growth because their teams operate with tighter budgets.
What Happens When a Driver's Contract Expires
F1 contracts typically run for one to three years. When a driver's contract is set to expire, negotiations begin months in advance. A driver's market value changes based on recent performance — a driver who won the championship the previous year can demand significantly more than one who finished mid-field. Teams also consider whether they want to keep the driver or move in a different direction.
High-profile driver moves, like Hamilton to Ferrari or Verstappen signing a long-term extension with Red Bull, often come with salary increases because the driver has proven their value and multiple teams may be interested in signing them. A driver with multiple offers can negotiate higher pay. Conversely, a driver whose performance has declined or who is nearing the end of their career may see their salary decrease or struggle to find a competitive seat.
The Difference Between Salary and Total Earnings
A driver's salary from their team is only part of their total income. F1 drivers also earn money from personal sponsorships, appearance fees, merchandise sales, and social media deals. Some drivers have sponsorship deals worth tens of millions of dollars annually, separate from their team salary. This means a driver's total earnings can be significantly higher than their reported team salary.
Additionally, drivers who own a portion of their team or have profit-sharing agreements can earn additional income if the team performs well commercially. While most drivers do not have this arrangement, it is another way top earners can increase their total compensation beyond their base salary and bonuses.
Frequently Asked Questions
Do all F1 drivers make millions of dollars?
No. Drivers at smaller teams or in their first season may earn $500,000 to $2 million annually. Only the top 8 to 10 drivers at competitive teams earn salaries in the millions. The majority of the 20-driver grid earns between $1 million and $10 million per year.
Can a driver negotiate their salary mid-season?
Rarely. Contracts are typically fixed for the duration of the season. However, if a driver is performing exceptionally well or a team wants to extend their contract early, renegotiation can happen. Most salary changes occur during the off-season when contracts are renewed.
Does a driver's salary change if they switch teams?
Yes, almost always. A driver moving to a top team usually earns more because those teams have larger budgets. A driver moving to a smaller team typically earns less. The new team's financial situation and the driver's market value at the time of the move determine the new salary.
How much of an F1 driver's income comes from sponsorships versus their team?
This varies widely. Top drivers may earn 30 to 50 percent of their total income from personal sponsorships and endorsements, with the rest from their team salary. Drivers with smaller social media followings may earn 80 to 90 percent from their team salary and only a small amount from outside sponsorships.
Is the reported salary figure what the driver actually takes home?
No. Reported salaries are gross figures before taxes, agent fees, and other deductions. Drivers pay income tax in their country of residence, which can be substantial. They also typically pay their agent 10 to 20 percent of their earnings. The actual amount a driver receives is lower than the reported salary.