The Real Cost of Driving in Iceland in 2026: Kilometre Fee, Parking, Tolls and Fuel

By the Zimno guide team · Last checked: 4 November 2026

Iceland changed how drivers pay in 2026. Fuel taxes were replaced by a per-kilometre fee, a new toll started on the Ring Road in September, and paid parking has spread to most of the stops on a classic itinerary. None of it is expensive on its own, but it adds up, and much of it is paid in apps or billed later by your rental company. Here’s what each item costs, how you pay it, and what three typical trips really cost.

What changed in 2026

• Kilometre fee instead of fuel tax (1 January). All vehicles up to 3.5 tonnes now pay 6.95 ISK for every kilometre driven, whether they run on petrol, diesel or electricity. In return, the old petrol and diesel road taxes were scrapped, and pump prices fell by a quarter to a third overnight (Húsavík.com). The Transport Authority still expected total running costs for many drivers to rise by 7–20% (Northbound).
• A new toll on Route 1 (1 September). The new Ring Road section through Hornafjörður, near Höfn, opened in June and has been tolled since September (Icelandic Road and Coastal Administration).
• More paid parking. Snæfellsjökull National Park started charging in August 2026, and Landmannalaugar parking had to be pre-booked in summer (Happy Campers).

The kilometre fee: 6.95 ISK per km

You never pay the road fee yourself. The car’s owner pays the state, so your rental company counts your kilometres and charges you for them. How they do it differs, so look for it in the quote:

• Per kilometre on top of the rental. Hertz Iceland, for example, charges the 6.95 ISK fee plus its own service fee of 1.40 ISK per km plus VAT, shown on the final invoice (Hertz Iceland).
• A daily rate or included in the price. Some companies spread it over the rental days or build it into the price. Reykjavik Cars bills it from the 6.95 ISK base rate, by day or by kilometre depending on the car model (Reykjavik Cars).
• Electric cars pay too. The fee is the same for every fuel type, so an EV no longer saves you road tax, only fuel.

As a rule of thumb, every 1,000 km costs about 7,000 ISK in road fee before any service charge. Still choosing a car? We recommend Reykjavik Cars and, for campervans, Motorhome Iceland. Ask either how they bill the kilometre fee before you book. More options on our car rental page.

Fuel and charging

• Petrol: about 284 ISK a litre and diesel about 336 ISK in early November 2026. Both are well up from the 2026 low in March (210.7 and 229.4 ISK), and diesel is now the more expensive of the two (fuel-prices.eu, Gasvaktin data, 4 Nov 2026).
• What it means: a petrol car using 7 litres per 100 km spends about 2,000 ISK on fuel for every 100 km.
• Paying: most stations are self-service. Foreign cards work, but some pumps ask for a PIN, so know yours, or buy a prepaid fuel card inside the station.
• Electric: fast chargers cost roughly 45–55 ISK per kWh and slow AC chargers 25–35 ISK, through apps such as ON Power, Ísorka and N1. Some stations add an idle fee if you stay plugged in for hours (Reykjavík Rent a Car).

Parking at the big stops

Most of the famous stops now charge 750–1,500 ISK per car. There’s rarely a barrier or a person: cameras read your number plate, and you pay in an app or online.

• Apps: most sites use Parka; a few use EasyPark, checkit.is or Glaze. Install Parka and add your card before you leave Reykjavík, because mobile signal at some car parks is weak.
• One ticket, one day: Þingvellir’s ticket covers all its car parks for the day, Jökulsárlón’s is valid until midnight, and Skaftafell is 50% off if you visit Jökulsárlón the same day (Go Campers).
• If you don’t pay: some sites add up to 5,000 ISK if you don’t pay on arrival, and an unpaid fee goes to your rental company, which passes it on with its own admin fee (Happy Campers).
• Reykjavík: street parking in the centre (zone P1) is 630 ISK an hour, for up to 3 hours. The city garages are cheaper.

Tolls and tunnels

• Hornafjörður, Route 1 near Höfn: 1,500 ISK per trip for cars under 3.5 tonnes. Cameras read the plate; pay the single trip on spolur.is within 24 hours, or your rental company is billed and charges you later (Vegagerðin). On a full Ring Road trip you pass it once.
• Vaðlaheiðargöng, near Akureyri: 2,216 ISK each way since 2 March 2026. Pay on veggjald.is within 24 hours before or after you drive through. If you miss it, the rental company adds its own fee, which can be bigger than the toll (Go Car Rental).
• Hvalfjörður tunnel, north of Reykjavík: free since 2018. Older guides that mention a toll are out of date.

Three trips, costed

These assume two people in a petrol car using 7 litres per 100 km at 284 ISK a litre, and the 6.95 ISK kilometre fee without any rental service charge. They don’t include the rental itself, insurance, food or entrance tickets other than those listed.

• Golden Circle from Reykjavík (about 250 km): road fee about 1,740 ISK, fuel about 4,970 ISK, parking at Þingvellir and Geysir 2,000 ISK, and Kerið 600 ISK per person. About 9,900 ISK in total.
• South Coast to Vík and back (about 370 km): road fee about 2,570 ISK, fuel about 7,360 ISK, parking at Seljalandsfoss, Skógafoss, Sólheimajökull and Reynisfjara 3,750 ISK. About 13,700 ISK.
• Ring Road in 8–10 days (about 2,000 km): road fee about 13,900 ISK, fuel about 39,800 ISK, around 15 paid car parks at about 1,000 ISK each, and the Höfn toll 1,500 ISK. About 70,000 ISK, or about 72,000 ISK if you take the tunnel at Akureyri one way.

When a guide is worth more than the savings

Driving yourself is usually the cheapest way to see the roadside sights. But some of the costs of a self-drive day aren’t on any receipt, and a certified guide earns their fee in these situations:

• You want to step onto a glacier. Parking at Sólheimajökull is 750 ISK, but walking onto the ice without a guide, crampons and a rope is how visitors get hurt. Glaciers have hidden crevasses and moulins, and the ice changes every week.
• It’s winter. In December there are only 4–5 hours of daylight, roads can close at short notice, and wind is the real danger, not snow. A guide drives, watches the forecast on umferdin.is and vedur.is, and changes the plan.
• You’re a group of four or more. On a private tour, transport, fuel and parking are included, and the cost per person drops with every seat you fill.
• You want the Northern Lights. Stopping on the road shoulder at night is dangerous, and often not allowed. A guide knows where to park safely.

Our tours that replace the drive

• Private Golden Circle Tour: 8 hours with hotel pickup at 9:00, by SUV (up to 4) or van (up to 15). Transport, parking, the greenhouse visit and a photo package included. From 169,000 ISK.
• South Coast Private Tour: about 10 hours from your hotel: Seljalandsfoss, Skógafoss, Reynisfjara, Vík and Sólheimajökull, parking included, with an optional glacier hike. From 179,000 ISK.
• Private Glacier Hike, meet on location: drive yourself to Sólheimajökull and walk on the ice with an AIMG-certified guide and all the gear. 3–4 hours, from 129,000 ISK.
• Northern Lights Private Tour: with a professional photographer, from 159,000 ISK.

Every tour can be guided in English or in Polish. See all our tours.

Before you go: a 1-minute checklist

• Ask your rental company how it bills the kilometre fee, and whether it adds a service fee
• Photograph the odometer and fuel gauge at pickup and return
• Install the Parka app and add your card before you leave Reykjavík
• Know your card PIN for unmanned fuel pumps
• Driving through Höfn? Pay the 1,500 ISK toll on spolur.is within 24 hours
• Using the Akureyri tunnel? Pay on veggjald.is within 24 hours, each direction
• Check road conditions on umferdin.is and the weather on vedur.is every morning

2026 price list

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