Road tax in Iceland 2026: Everything you need to know
Halldóra
Starting January 1, 2026, Iceland will introduce a new road tax. This includes a daily fee of ISK 1,390 for each day of your rental. 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.
Starting January 1, 2026, Iceland will introduce a new road tax. This includes a daily fee of ISK 1,390 for each day of your rental.
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.
