Follow usFormula 1’s financial landscape is set for a dramatic shift in 2026, with the FIA confirming a substantial increase to the sport’s spending cap. According to the governing body’s financial regulations director, Federico Lodi, the limit will rise from the current $135 million to $215 million per season.
The existing cap, which has been in place since 2023 and adjusted annually for inflation, will see its biggest jump yet as teams prepare for the introduction of a new generation of cars under F1’s revised technical regulations.
One exception will apply to Audi, which is set to enter the grid under its own name in 2026 after completing its transition from Sauber. Due to significantly higher wage levels in Switzerland — estimated at 35 to 45 percent above those in Britain and Italy — the team will be permitted a higher cap to account for additional operational costs.
As before, the financial ceiling will not include driver salaries, the wages of the three highest-paid team employees, or several other designated expenses.
Lodi explained that the dramatic increase reflects both global inflationary pressures and the costs associated with F1’s technological overhaul, ensuring that teams remain competitive as the sport enters a new era.
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