F1 Driver Salaries: How Much Do Champions Earn?
Complete ranking of Formula 1 driver pay for 2025
Introduction
F1 Driver Salaries: How Much Do Formula 1 Stars Earn?
F1 driver salaries represent the highest pay in world motorsport. In 2025, Max Verstappen sits at the top with a contract estimated at $55 million annually, while rookies start around $1 million. This disparity reflects the exceptional market value of champions in a sport where talent, results and brand image drive negotiations.
Unlike other sports, driver salaries are not subject to the $135 million budget cap imposed on teams. This is one of the few expenditure items exempt from this limit, allowing top teams to attract the best drivers without budget constraints.
F1 Salary Rankings 2025
Here are the estimated salaries of all 20 drivers on the grid for the 2025 season, based on available information and specialist media reports.
Top 10 Highest-Paid Drivers
| Rank | Driver | Team | Estimated Salary |
|---|---|---|---|
| 1 | Max Verstappen | Red Bull | $55M |
| 2 | Lewis Hamilton | Ferrari | $50M |
| 3 | Charles Leclerc | Ferrari | $25M |
| 4 | Lando Norris | McLaren | $20M |
| 5 | Fernando Alonso | Aston Martin | $18M |
| 6 | George Russell | Mercedes | $15M |
| 7 | Carlos Sainz | Williams | $12M |
| 8 | Oscar Piastri | McLaren | $8M |
| 9 | Sergio Pérez | Red Bull* | $8M |
| 10 | Pierre Gasly | Alpine | $5M |
*2025 position uncertain
Other Grid Drivers
| Rank | Driver | Team | Estimated Salary |
|---|---|---|---|
| 11 | Lance Stroll | Aston Martin | $4M |
| 12 | Esteban Ocon | Haas | $4M |
| 13 | Yuki Tsunoda | Racing Bulls | $3M |
| 14 | Alexander Albon | Williams | $3M |
| 15 | Kevin Magnussen | Haas | $2M |
| 16 | Nico Hülkenberg | Kick Sauber | $2M |
| 17 | Valtteri Bottas | Kick Sauber | $2M |
| 18 | Zhou Guanyu | - | - |
| 19 | Liam Lawson | Racing Bulls | $1M |
| 20 | Jack Doohan | Alpine | $1M |
Estimated total driver salaries 2025: ~$240 million
Structure of an F1 Driver Contract
A Formula 1 driver contract is far more complex than a simple annual salary. Here are the different components.
Base Salary
This is the guaranteed fixed remuneration, paid monthly or quarterly. It typically represents 60-70% of the driver's total earnings.
Determining factors:
- Track record (world titles, wins)
- Marketing value (followers, personal sponsors)
- Market demand (other interested teams)
- Age and future potential
Performance Bonuses
Contracts include results-based bonuses:
| Bonus Type | Typical Amount |
|---|---|
| Race win | $50,000 - $500,000 |
| Podium | $20,000 - $100,000 |
| Pole position | $10,000 - $50,000 |
| Championship point | $5,000 - $20,000 |
| Constructors' title | $1 - $5M |
| Drivers' title | $2 - $10M |
Example: Max Verstappen reportedly earned approximately $15 million in bonuses for his 2023 title, on top of his base salary.
Image Rights
Drivers negotiate a share of revenue generated by their image:
| Use | Typical Driver Share |
|---|---|
| Team merchandise | 5-15% |
| Team sponsor appearances | 40-60% |
| Personal contracts | 100% |
| Social media | 100% |
Salary Evolution: From Schumacher to Verstappen
Salaries have evolved considerably over the decades.
History of Highest-Paid Drivers
| Era | Driver | Salary (inflation adjusted) |
|---|---|---|
| 1992 | Ayrton Senna | ~$35M ($12M nominal) |
| 2000 | Michael Schumacher | ~$50M ($25M nominal) |
| 2007 | Kimi Räikkönen | ~$60M ($40M nominal) |
| 2015 | Fernando Alonso | ~$40M ($35M nominal) |
| 2020 | Lewis Hamilton | ~$50M ($40M nominal) |
| 2025 | Max Verstappen | $55M |
Factors Driving Evolution
Overall increase:
- F1 revenue growth (Liberty Media)
- New markets (USA, Middle East)
- Increased media value
Growing disparities:
- The gap between highest and lowest paid driver has gone from 1:10 (1990s) to 1:55 today
Salaries and Budget Cap: A Grey Area
The $135 million budget cap introduced in 2021 created a particular situation regarding driver salaries.
What's Included in the Cap
| Included | Excluded |
|---|---|
| Technical staff | Top 3 highest-paid driver salaries* |
| R&D | Marketing |
| Manufacturing | Driver travel expenses |
| Electricity, rent | Engines (up to a ceiling) |
| Staff bonuses (capped) | Driver bonuses |
*Only salaries above a threshold (~$1 million) are excluded.
Advantage for Big Teams
This exclusion of driver salaries means wealthy teams can:
- Attract the best drivers without impacting development
- Offer unmatched financial packages
- Create asymmetry with smaller teams
Ongoing debate: Some suggest including a portion of salaries in the cap for greater fairness.
Off-Contract Income
Beyond their team contract, drivers generate substantial additional income.
Personal Sponsors
The most marketable drivers have personal sponsors:
| Driver | Personal Sponsors | Estimated Revenue |
|---|---|---|
| Lewis Hamilton | Tommy Hilfiger, Monster, IWC | $10-15M/year |
| Max Verstappen | Ziggo, Jumbo, CarNext | $5-10M/year |
| Charles Leclerc | Giorgio Armani, APM Monaco | $3-5M/year |
| Lando Norris | Quadrant, JD Sports, Wix | $3-5M/year |
Investments and Business
Many drivers diversify their income:
| Driver | Company | Sector |
|---|---|---|
| Lewis Hamilton | Dawn Apollo Films | Film production |
| Lando Norris | Quadrant | Gaming, esports |
| Fernando Alonso | Kimoa | Fashion, lifestyle |
| Max Verstappen | Team Redline | Sim racing |
| George Russell | - | Tech investments |
Social Media Value
Digital presence influences marketing value:
| Driver | Instagram Followers | Estimated Value/Post |
|---|---|---|
| Lewis Hamilton | 35M+ | $200-400K |
| Charles Leclerc | 20M+ | $100-200K |
| Lando Norris | 10M+ | $50-100K |
| Max Verstappen | 12M+ | $60-120K |
Comparison with Other Sports
How do F1 salaries compare to other major sports?
Average Annual Earnings (Top 5 Athletes)
| Sport | Top 5 Average | Maximum |
|---|---|---|
| NBA | $50M | $60M (Curry) |
| Football/Soccer | $80M | $130M (Ronaldo/Messi) |
| NFL | $55M | $60M (Mahomes) |
| F1 | $35M | $55M (Verstappen) |
| Tennis | $30M | $40M (Alcaraz) |
| Golf | $25M | $35M (Scheffler) |
F1 specificity: Drivers are few (20) and irreplaceable, but F1 generates less revenue than football or the NBA.
Salary/Sport Revenue Ratio
| Sport | Global Revenue | Athlete Share |
|---|---|---|
| NBA | $10B | ~51% |
| NFL | $18B | ~48% |
| F1 | $3B | ~8% |
| Football (Top 5 leagues) | $35B | ~62% |
F1 drivers capture a much smaller share of global revenue than in other sports, primarily because technical costs are enormous.
Negotiations: Who Has the Power?
Contract negotiations in F1 are a complex chess game.
Negotiation Factors
For the driver:
- Offers from other teams (major leverage)
- Recent performance
- Personal sponsors brought in
- Remaining contract length
For the team:
- Need for stability
- Young driver development program
- Budget constraints
- Sponsor pressure
Recent Case Studies
Lewis Hamilton (2024): The surprise Ferrari transfer reportedly involved:
- Minimum $50M/year salary
- Guaranteed number one driver role
- Control over certain marketing aspects
Max Verstappen (2022): Extension to 2028 negotiated from a position of strength after his first title:
- Increase from $25M to $55M/year
- Exit clauses linked to Red Bull performance
- Input on teammate choice
Pay Drivers: The Other Extreme
At the opposite end from superstars, some drivers pay to race.
The "Pay Driver" Concept
A pay driver brings sponsors who finance part or all of their seat:
| Type | Contribution | Examples |
|---|---|---|
| Partially sponsored | $5-15M/year | Several current drivers |
| Fully sponsored | $20-30M/year | Some rookies |
| Owner's son | Variable | Lance Stroll |
Impact on the Sport
Arguments for:
- Allows teams to survive financially
- Opens F1 to new markets
- Some pay drivers become excellent (Pérez, Stroll)
Arguments against:
- Blocks access for deserving drivers
- Can affect team performance
- Creates economic barrier to entry
FAQ: F1 Driver Salaries
Who is the highest-paid F1 driver in history?
In inflation-adjusted terms, Michael Schumacher remains near the top with his Ferrari contracts from the 2000s (equivalent to ~$70 million today with bonuses). However, Max Verstappen with his current $55 million base contract could surpass this record including his performance bonuses and external income.
Do drivers pay taxes on their salaries?
Yes, but many optimize their taxation by residing in low-tax countries like Monaco (no income tax), Switzerland or Dubai. A driver residing in France or the UK would pay up to 45% of their salary in taxes.
How much does a rookie driver earn?
A rookie without major personal sponsors earns between $500,000 and $2 million for their first season. If they bring significant sponsors, they may even "pay" for their seat rather than being paid. Academy drivers (Ferrari, Red Bull, Mercedes) often have favorable contracts negotiated by their junior program.
Are salaries public?
No, exact salaries are confidential and protected by non-disclosure clauses. Published figures are estimates based on leaks, industry sources and comparative analysis. The variance from reality can be 20-30%.
Can a driver be fired mid-contract?
Yes, but it's expensive. The team usually has to pay out the rest of the contract or negotiate a severance package. Recent cases: Nyck de Vries (fired by AlphaTauri after a few races), Daniel Ricciardo (McLaren buyout 2022). Contracts often include performance clauses allowing easier termination.
Salaries are just one part of the economic equation in F1. To understand other financial stakes, check out our articles on F1 car cost and the budget cap.
