Road tax in Iceland 2026

Effective January 1, 2026, a new road tax will be implemented in Iceland and charged either as a daily fee of ISK 1,390 per day of rental or as a per-kilometer rate of ISK 6.95.

The road tax will apply to all vehicles in 2026, regardless of whether they run on fuel, electricity, or other energy sources.

In addition, a kilometer-based charge will apply based on the distance you drive. This replaces the current fuel and petrol taxes, which will no longer be charged.

For full details and how these fees apply to your rental, please refer to your rental agreement.