How Much Does it Cost to Go to Iceland? Average Iceland Travel Costs in 2026

Understanding Iceland travel costs is one of the most important parts of planning a trip. In this 2026 travel budget guide, we break down the average cost to travel to Iceland, explain why prices fluctuate, and show exactly how much you should budget for flights, accommodation, food, rental cars, fuel, and activities.

As Iceland’s local car rental provider, Hertz Iceland works with travelers planning real road trips across the country every day. Because transportation is one of the largest contributors to the overall cost of travel in Iceland, we see firsthand how seasonal demand, vehicle choice, mileage, fuel prices, and new policies like the 2026 kilometer-based road tax affect what visitors actually pay. The cost ranges in this guide are based on current market pricing and real booking patterns, not generic averages or outdated estimates.

Iceland is famous for its dramatic landscapes and unique cultural heritage, and it also has a reputation for being expensive. While that reputation is largely accurate, Iceland’s travel costs are usually predictable once you understand where the money goes. With realistic expectations and careful planning, it is possible to budget confidently and avoid unexpected expenses. For many itineraries, self-drive travel offers the best balance of cost, flexibility, and access to Iceland’s free natural attractions.

Table of Contents

• Calculating the Cost of Traveling in Iceland: What Affects the Cost?
  • Seasonality and Its Impact on Costs
    • Travelling time
    • Traveling method/Travel style
    • Stay duration 
    • Group size 
    • Type of experience 
• Breakdown of Costs for a Trip to Iceland
  • How Much Does a Flight Ticket Cost?
  • How much does it cost to stay in Iceland? Estimated price per night
  • How much does it cost to eat in Iceland? Estimated price per person
  • How much does it cost to travel around Iceland? 
  • How much does it cost to rent a car in Iceland? 
  • How much does gas cost? 
  • How much to budget for other expenses? Are attractions in Iceland free?
• Why is Iceland an Expensive Country?
• Budget Saving Tips

Iceland Travel Cost Summary (2026 Estimates)

Based on average daily spending per person (excluding flights).

Expense Category	Shoestring Budget (Backpacker/Camper)	Mid-Range Budget (Couples/Families)	Luxury Budget (Premium Hotels/Tours)
Accommodation	7,000 – 15,000 ISK	22,000 – 45,000 ISK	55,000+ ISK
Food & Dining	3,000 – 5,000 ISK (Groceries)	7,000 – 12,000 ISK (Eating out once/day)	25,000+ ISK (Fine dining)
Transport (Car + Fuel)	9,000 – 14,000 ISK (Small 2WD)	16,000 – 28,000 ISK (Med SUV)	40,000+ ISK (Large 4X4)
Activities	Free nature sites, low-cost stops	5,000 – 15,000 ISK	30,000+ ISK
Total Daily Cost	~18,000 – 30,000 ISK (Approx $144 – $240 USD)	~40,000 – 65,000 ISK (Approx $320– $520 USD)	~120,000+ ISK (Approx $960+ USD)

These ranges assume advance booking. If you book late in peak summer or travel during the solar eclipse week in August 2026, costs can increase significantly.

Breakdown of Costs for a Trip to Iceland

Now, let’s break down the costs of each aspect of a trip to Iceland so you can effectively budget how much you will need to spend. 

Accommodation Costs in Iceland

Different types of accommodation are available in Iceland, from hostels and guesthouses to hotels and apartments. Prices vary by season and by location.

Hotels 

• Summer: ISK 22,000–45,000 ($176–360) per person (private room)
• Winter: ISK 15,000–30,000 ($120–240) per person

Premium hotels can go higher, especially in peak summer and during high-demand weeks.

Hostels

• Summer: ISK 7,000–18,000 ($56–144) per person
• Winter: ISK 5,000–12,000 ($40–96) per person

Hostels in Iceland can be more expensive than in many other countries, but they are still one of the best value options.

AirBnb 

• Shared space: ISK 7,000–15,000 ($56–120) per person
• Entire unit: ISK 20,000–50,000+ ($160–400+) per night, depending on size, location, and season

Camping 

Camping in Iceland is a great way to experience the country. For campervans or tenting, the cost for a campsite is between ISK 1,508 ($10) and ISK 4,000 ($32) per person, per night. Camping during winter in Iceland is not recommended due to severe weather and limited campsite availability. But during the summer in Iceland, it’s one of the most inexpensive accommodation options. 

Food Costs in Iceland

Food in Iceland can be expensive compared to many European destinations. Many travelers say food is where they overspend without realizing it. Here is a breakdown of the average cost of food in Iceland so you know what to expect.

• Groceries only: ISK 2,500–4,000 ($20–32) per day (Check out our Iceland grocery guide here).
• Restaurant meal: ISK 7,000–12,000 ($56–96) per meal
• Fine dining: ISK 15,000–20,000+ ($120–160) per meal

Cheaper options still exist:

• Casual meals can cost around ISK 5,000–8,000 ($40–64)
• Icelandic hot dogs are still one of the best-value meals, often around ISK 800–1,200 ($6.50–9.60), depending on location

Transportation Costs in Iceland

Public transportation in Iceland is limited outside Reykjavík and is not designed for flexible sightseeing. City buses in Reykjavík cost around ISK 570–650 per ride, while long-distance buses, which mainly operate in summer, typically cost ISK 5,000–12,000 one way depending on distance. Taxis are available in cities and at the airport, but they are expensive, with short city rides often costing ISK 3,500–6,000 and airport transfers between Keflavík and Reykjavík usually ranging from ISK 18,000–25,000.

Guided tours are a common option for visitors who prefer not to drive. Popular day tours such as the Golden Circle or South Coast generally cost ISK 19,000–30,000+ per person, depending on the tour type and season. While tours include transportation and a guide, booking multiple tour days can quickly increase the overall cost of travel in Iceland.

For most itineraries, renting a car offers the best balance of cost and flexibility. Many of Iceland’s most famous natural attractions are free to visit, and self-drive travel allows you to reach them without paying daily tour fees. For longer trips or multi-stop routes, rental cars are often more economical overall, especially when costs are shared between travelers. Detailed rental car and fuel costs are covered in the following sections.

Rental Car Costs in Iceland 

Rental cost varies based on vehicle type, season, and how early you book. Budgeting by category is more accurate than relying on one specific model.

Average Daily Rental Prices

Vehicle Type	Summer (Jun – Aug)	Winter (Oct – Apr)	Best for
Small 2WD	ISK 14,000–22,000	ISK 9,000–14,000	Reykjavik, Golden Circle, summer road trips
Compact 4WD	ISK 18,000–30,000	ISK 13,000–22,000	Ring Road, mixed conditions
Mid-Size SUV 4WD	ISK 22,000–38,000	ISK 16,000–28,000	Winter travel, comfort, longer trips
Large 4X4	ISK 35,000–65,000	ISK 28,000–50,000	Highlands, groups, heavy luggage
Campervan	ISK 18,000–45,000	Limited	Transport + accommodation combined

Kilometer-Based Road Tax and Fuel Prices

As of January 1, 2026, Iceland has introduced a kilometer-based road usage tax (kílómetragjald). Instead of funding roads mainly through fuel taxes, drivers now pay based on how far they drive.

For rental cars, this tax is applied per kilometer driven and appears as a separate, itemized charge on your rental agreement and final invoice. The charge includes the mandatory government road tax and a small administrative service fee handled by the rental company. Renters do not need to register or report anything themselves.

The good news is that fuel prices have dropped as a result of this change, since taxes have been shifted away from the pump. For most travelers, overall driving costs remain predictable and often similar to previous years, especially for standard itineraries like the Golden Circle or Ring Road.

This road tax covers public road usage only. Tunnel tolls, parking fees, entrance fees for attractions and lagoons, and traffic fines are still charged separately and should be budgeted for as before.

Fuel Costs in Iceland

Fuel prices in Iceland fluctuate and are priced per liter in Iceland. Gas prices in Iceland have dropped significantly following the introduction of the new kilometer-based road usage tax. Because road funding is no longer built primarily into fuel prices, petrol and diesel are now noticeably cheaper at the pump than in previous years.

As of early 2026, the current average prices are:

• Gasoline: around ISK 183 per liter
• Diesel: around ISK 204 per liter

For context, average fuel prices previously hovered closer to ISK 300 per liter or more, making this a substantial reduction. While drivers now pay a separate per-kilometer road tax through their rental agreement, lower pump prices help balance overall driving costs for most travelers.

Fuel prices can fluctuate, so for live, up-to-date gas prices across Iceland, travelers can check bensinverd.is, which tracks current rates by station and region.

Attraction Costs in Iceland

Most attractions in Iceland are free when travelling around the island via Route 1 Ring Road, only a few classic attractions, for example the black sand beach, Seljalandsfoss waterfall, thingvellir National park, they do charge a small parking fee. But if you want to visit some museums during your time spend in Reykjavik, that will cost.

Shopping Costs in Iceland

When visiting Iceland, shopping for souvenirs is a delightful way to preserve memories of your trip. The prices for common souvenirs vary, with typical items like Icelandic wool sweaters, locally made crafts, and Viking-themed memorabilia.

For instance, a classic Icelandic wool sweater can cost anywhere from ISK 10,000 to ISK 25,000, depending on the quality and design. For more budget-friendly options, tourists can look for smaller items like keychains, postcards, or volcanic rock jewelry, typically ranging from ISK 500 to ISK 4,000.

To find value-for-money purchases, it is advisable to shop at local markets or stores away from main tourist areas, where prices are often inflated. Places like Kolaportið, Reykjavik’s flea market, offer a wide range of items at more reasonable prices compared to souvenir shops at popular tourist destinations.

Entrance Fees for Popular Tourist Spots in Reykjavik: from 6,990 ISK

Iceland is home to numerous attractions, and while many natural wonders like the famous black sand beach at Reynisfjara are free to visit, some popular spots do have entrance fees.

For example, a visit to the Blue Lagoon, one of Iceland’s most iconic geothermal spas, can cost 14990 ISK for a standard package, including a silica mud mask and use of a towel. Other notable attractions include the Perlan Museum in Reykjavik, where entrance fees are around ISK 6,890 per adult, and the Whale Museum in Husavik, which charges about ISK 2,500 per adult.

Additionally, some of the national parks and protected areas might have parking fees or charges for guided tours, although access to the park itself is typically free. It’s always a good idea to check for updated prices and book tickets in advance for popular activities in Iceland, especially during the high tourist season, to avoid last-minute price surges and ensure availability.

Cost of Flights to Iceland

In the summer, when crowds are always at their highest, flight tickets from North America to Iceland typically cost between ISK 84,504 ($600) and ISK 211,260 ($1,500), while flights from Europe would cost between ISK 60,203 (€400) and ISK 135,457 (€900). 

During the offseason in winter, flight tickets from North America to Iceland typically cost between ISK 70,420 ($500) and ISK 169,008 ($1,200), while flights from Europe would cost between ISK 30,101 (€200) and ISK 90,304 (€900). 

• Read more about: Iceland flights: airlines, airports, and destinations guide

Calculating the Cost of Traveling in Iceland: Why Iceland Travel Costs Vary

Several factors can influence how much you will spend on your trip to Iceland, including the time of year you visit, how you travel, and how many paid experiences you add. These factors are worth understanding because they explain most price swings.

Seasonality

Traveling time & The 2026 Solar Eclipse

• High Season (June–August): Prices for hotels and rentals peak. Note for 2026: A total Solar Eclipse will occur on August 12, 2026. Expect extremely high demand and prices during this week. We strongly recommend booking 6–12 months in advance for August 2026.
• Shoulder Season (May & Sept): Moderate prices, decent weather.
• Low Season (Oct–April): Lowest prices (often 30–50% cheaper), but requires a 4×4 vehicle for safety.

The most significant factor impacting the costs of a trip to Iceland is the time of year you choose to travel, as different seasons will have different cost implications. Since the summer period is high in traffic from tourists, prices of most goods and services tend to increase due to supply and demand. In the Iceland winter months and during off-season, prices are generally cheaper due to reduced crowds.

That said, you will need a more sturdy and well-equipped 4X4 vehicle to handle the winter road conditions, which could come with an increased price. It’s also important to note that you may want to book a longer stay during the winter as you will need to account for delays due to bad weather and build some extra buffer time into your itinerary. Additionally, the week of Christmas and New Year’s will typically be more expensive than the rest of the winter months. 

Travel Style

How you travel will also impact how much you spend while in Iceland. Renting a car is the cheaper and preferred option since it costs way less than going on multiple tours. Plus, it allows you to plan your itinerary and change your mind without incurring further expenses than originally planned.

Many of the top attractions in Iceland are free to visit, but you’ll need a car to get there. Tours will always cost you money and will also limit the places that you can actually visit. 

Stay duration 

How long you choose to stay in Iceland is another important factor in determining how much your trip to Iceland will cost. Regardless of season or vehicle choice, longer stays mean more money spent on expenses like food, lodging, rental cars, and gas. 

Group Size

A great way to save money when traveling to Iceland is by traveling in a group, which allows you to compile resources for shareable expenses like accommodation, food, transportation, and even some experiences and attractions. In addition to creating lasting memories with loved ones, sharing the costs is one of the best ways to make your trip more budget-friendly. 

Type of experience 

Ultimately, deciding how much you will spend on a trip to Iceland depends on how much you have available in your budget. Solo travel on a shoestring budget at the right time of the year would cost about ISK 12675 ($90) per day, while an all-expense luxurious trip would set you back up to ISK 40,843 ($290) per day. On average, however, people spend around ISK 27,531 ($195) daily on trips to Iceland, excluding airfare.

In-Depth Exploration of Iceland’s Cost Factors

Local Economic Factors Affecting Prices

Iceland’s geographical isolation significantly impacts the cost of goods in the country. Located in the North Atlantic, far from mainland Europe and North America, Iceland relies heavily on imports for many of its essential and non-essential goods. This reliance on importation naturally leads to higher costs. Everything from food items to consumer goods must be transported over long distances, often incurring substantial shipping fees, which are then passed on to the consumer in the form of higher retail prices.

Additionally, the limited local production capacity in various sectors means that the country cannot offset these costs by producing more goods domestically. This situation results in a higher cost of living compared to many other countries, affecting both residents and tourists alike.

Contrary to what one might expect, Iceland’s energy costs, predominantly sourced from renewable resources like geothermal and hydroelectric power, play a unique role in its economy. While these renewable sources provide relatively cheap and abundant energy, the initial infrastructure setup for harnessing these natural resources involves high costs.

These expenses, in turn, can contribute to the overall cost of services and goods in Iceland. However, it’s also noteworthy that the abundance of renewable energy has attracted energy-intensive industries to the country, which positively impacts the economy but can also lead to increased competition for resources.

Impact of Tourism on Iceland’s Economy

Tourism has become a cornerstone of the Icelandic economy. The breathtaking landscapes, unique geological features, and the allure of the Northern Lights have turned Iceland into a popular tourist destination. This influx of tourists has led to increased demand for accommodation, food services, and travel-related services, driving up prices due to the high demand, especially during peak travel seasons. The revenue generated from tourism significantly contributes to the national economy but also results in a cost structure that caters to tourists, often at premium prices.

Sustainable Tourism and Its Costs: Iceland has been a proponent of sustainable tourism, aiming to preserve its pristine natural environments while catering to tourists. Sustainable tourism initiatives often involve investing in environmentally friendly infrastructure, promoting responsible travel practices, and ensuring that tourism does not adversely affect local communities and ecosystems.

These initiatives, while crucial for long-term preservation, often come with higher operational costs. These costs, necessary for maintaining the balance between welcoming tourists and preserving natural beauty, are reflected in the pricing of tours, accommodations, and other tourist-related services in Iceland.

Iceland Travel Budget Tips

Despite having a reputation for being an expensive destination, there are several ways that you can save money on your trip to Iceland. 

• Consider visiting during the off-season and shoulder seasons, when the crowds will be significantly less than during the summer. This will save costs on flight tickets, accommodation, car rentals, and even food and activities. 
• Always book in advance. Get your essentials, like Iceland flight tickets and rental cars, ahead of schedule as much as possible. This way, you can avoid any last-minute price hikes and also ensure that you don’t miss out on availability and end up unable to book your preferred options.
• With the price of restaurant meals in Iceland, the most budget-friendly way to dine is to cook your own food. Many hostels, Airbnbs, campgrounds, and campervans have provisions for cooking, and grocery stores are never far away. So, with a little effort, you can spare yourself the cost of an expensive restaurant meal and make food to your taste.
• If your accommodation or itinerary does not allow you time or space to cook meals, then this could be the time to embrace the fast food options in Iceland; after all, it is a vacation. But if you have it in the budget, we do recommend trying out some local Icelandic cuisine. 
• Enjoy free activities and attractions as opposed to tours and paid entertainment. For example, instead of going to a paid Iceland hot springs or geothermal bath, you can opt for more remote, free hot springs enjoyed by locals while also getting a more authentic experience.
• There are also several accessible black sand beaches, glacier lagoons, Iceland waterfalls, and hiking trails that satisfy your thirst for adventure in Iceland without costing more than gas money or transportation to reach these areas since they are free to access. 
• Bring your own water bottle. A simple water bottle will save you money that you would have otherwise spent on bottled water, as you can safely drink tap water in Iceland and fill your water bottle at rest stops instead of buying water at different venues and public attractions. 
• Consider traveling with a friend or family member to split the costs. Many essentials like gas, food, rental cars, and accommodation can be divided between two or a larger party to break heavy expenses into lighter loads for each individual. 
• Eat in local markets and food halls in Iceland is not just a culinary adventure; it’s a smart way to keep your dining budget in check. These places offer a diverse array of Icelandic specialties at prices that are much more wallet-friendly than what you might find in upscale restaurants. For instance, at Reykjavik’s Grandi Food Hall or Hlemmur Food Hall, you can savor everything from traditional Icelandic snacks to international dishes, all without breaking the bank.
• Making the Most of Tax-Free Shopping. This is particularly beneficial for tourists planning to make substantial purchases. Look for stores displaying the “Tax-Free Shopping” signage, and remember, your total purchase needs to be at least ISK 6,000 to qualify. Keep your receipts and fill out the tax-free form provided by the store. When you’re heading home, show these forms along with your items at the airport or port customs for validation, and you can claim your refund right there in the departure area. This process effectively reduces the cost of your shopping, giving you more value for every dollar spent.

Iceland Travel Cost FAQs

• • How does the 2026 Road Tax work for tourists?
    It is simple. You pick up your car as usual with unlimited mileage included. At the end of your trip, the tax is calculated based on the exact distance you drove (approx 6.95 ISK per km + service fee) and charged via your rental agreement. This ensures you only pay for the road usage you actually consume.

• • Is Iceland expensive to visit in 2026?
    Yes, Iceland remains a premium destination. However, the exchange rate has been relatively stable. By traveling in the shoulder season (May or September) or choosing a campervan, you can significantly reduce daily costs.

• • Do I need cash in Iceland?
    No. Iceland is almost entirely cashless. You can pay for everything—from parking meters to public toilets—with a credit card, Apple Pay, or Google Pay.

• • Is the Blue Lagoon worth the cost?
    Admission starts around 14,990 ISK ($108). While iconic, there are budget-friendly alternatives like the Secret Lagoon or local municipal pools (Sundhöllin) which cost only ~1,300 ISK.

• • Is water free in Iceland?
    Yes! Never buy bottled water. Icelandic tap water is some of the cleanest in the world. Bring a reusable bottle and fill it up at any tap for free.

Cost Guide to Iceland

This cost guide to Iceland has provided detailed information on how much it costs to go to Iceland, along with key details on the average cost of trip essentials and factors that could cause those prices to change throughout the seasons. By following our tips on the best ways to save money while on vacation in Iceland, you can keep your trip within your budget, regardless of what that is. 

One of the best ways to save money on your trip to Iceland is to book a rental car online and in advance with Hertz Iceland to lock in the rental rate before it fluctuates. By securing your rental car prior to your trip, you can ensure you get the best deal and the perfect vehicle to explore the wondrous landscapes of Iceland.