F1 | 2026 budget cap rises to $215 million: Audi granted extra for high Swiss wages. From 2026, the F1 budget cap will increase to $215 millioni.

F1 budget cap set at $215 million from 2026, Audi gets extra for Swiss salaries

Formula 1 is preparing for its biggest regulatory revolution to date. In 2026, chassis and cars will change completely, and power units will be restructured, removing the MGU-H and balancing power output between the electric and internal combustion components.

Audi will make its F1 debut, completing its acquisition of Sauber, and will operate across three locations: Hinwil in Switzerland, Neuburg in Germany for power unit assembly, and the recently inaugurated facility in Bicester, UK. Meanwhile, the grid will expand from 10 to 11 teams with the arrival of Cadillac, which will use Ferrari power units. Ferrari will continue to supply two customer teams: Haas and the new Cadillac entry replacing Sauber.

Budget cap adjustments explained

According to racingnews365.com, which interviewed Federico Lodi, FIA’s head of financial regulations, from 2026 the budget cap will rise to $215 million. Audi will receive an extra allowance to account for the significantly higher salaries at its Hinwil facility, where wages are 35-45% higher than in other locations.

“We have made some adjustments in defining the maximum spending cap, considering inflation since 2021, with the cumulative effect taken into account in the cap level,” Lodi said. “So the $215 million cap set for teams from 2026 is essentially the result of two factors: the current budget cap plus accumulated inflation, and the effect of costs currently outside the scope that we have introduced. Overall, this isn’t really an increase in capital; it’s simply a different way of calculating the cap. It doesn’t result in higher spending for teams because these costs are already being incurred—they are just now included within the cap. Setting the rules is complex because there are 10, now 11 teams with different programs, priorities, and perspectives. Ideally, the regulation might have been slightly different if drafted independently, but we had to seek convergence to gain consensus among all teams.”

Exceptions for top salaries and drivers

The top three salaries in each team will continue to be excluded from the budget cap, as will drivers’ wages. This ensures that while the cap accounts for broader team costs and inflation, star personnel remuneration remains outside its limits.