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Rental Agreement New Road Tax in Iceland: What You Need to Know

New Road Tax in Iceland: What You Need to Know

How the new Icelandic road tax affects your trip, and where you actually save money.

Rey

Last Update hace 3 meses

 Why Was This Introduced? 

As more vehicles travel around Iceland each year, including rental cars used by visitors, the need for sustainable road funding has increased. The new road tax ensures that all road users contribute fairly to maintaining safe and reliable infrastructure across the country.

How It Affects Your Rental

At Viking Wheels Car Rental, we are required to collect this road tax as part of your rental.

  • The road tax is 1,590 ISK per rental day.
  • This amount goes entirely to the Icelandic government.
  • Viking Wheels does not keep any portion of this fee.

The tax is collected on-site at vehicle pickup. You do not need to pre-pay the amount. Any valid debit or credit card is fine, as is cash.

How Do I Pay The Road Tax?

Depending on how and when you made your rental, the road tax may be paid at the time of booking, between the time of booking and pick up, or at your pick up of the car in Iceland.

Bookings made through The Viking Wheels Website

When you make a new booking on the Viking Wheels website, the road tax is automatically calculated onto your total.

You can choose between paying the rental and road tax at the time of booking, or at pick up of the vehicle, in Iceland. Either way is fine.

Bookings Made Before 2026

If you booked your rental before 2026, you will pay the road tax at the end of your rental. We have reached out to all guests who booked before the tax was introduced to notify them of how this will happen.

This applies to bookings made directly on the Viking Wheels website and on Guide To Iceland.

Bookings Made on Guide To Iceland

If you booked your rental through Guide To Iceland, in 2026, we will charge the daily road tax at pick up.

A Positive Change: Lower Fuel Prices 

At the same time the new road tax was introduced, the tax previously applied to petrol was removed. This has significantly reduced fuel prices by roughly a third, making it much more affordable to drive around Iceland.

For most travellers, this is great news! While there is now a daily road tax fee, the lower cost of fuel can help balance overall trip expenses, especially if you are planning to explore extensively and cover longer distances during your stay.

In Summary


  • The road tax is a government-imposed fee.

  • It supports road maintenance and infrastructure in Iceland.

  • The previous petrol tax was removed, significantly lowering fuel prices.
  • Viking Wheels only collects the fee on behalf of the government.

If you have any questions about this charge, we are always happy to explain further. We believe in full transparency and want you to feel confident about every part of your rental experience.


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