Anyone familiar with Iceland knows that the most beautiful places are rarely right next to the airport. Whether it’s the perfect light in the Westfjords or the remote highlands, we’ll be covering quite a few miles. In 2026, however, it’s not just the miles on the road that require extra planning, but also the time spent at the border.
As of January 1, 2026, Iceland has fundamentally overhauled its tax system for cars. Additionally, since April 10, a new digital border system (EES) has changed the way we enter the country.
For us travelers, the key questions are: Will our trips cost more, and how much extra time do we need to plan for at the airport?
New road fees - The facts: What has changed?
In the past, road construction was financed through fuel prices. Since more and more electric cars are on the island, the government has standardized the system. There is no mandatory vignette; instead, every kilometer driven is billed.
- The base rate: Every vehicle up to 3.5 tons (whether electric, combustion engine, or hybrid) pays 6.95 ISK per km (approx. 0.05€ / $0.06).
- Fuel discount: Fuel taxes have effectively been abolished. Gasoline and diesel have become about 30% cheaper at the pump (from about 300 ISK to about 200 ISK per liter).
- However: An increased CO₂ tax offsets part of this reduction.
The Cost: More Expensive or Cheaper?
1. Rental Cars (The Most Common Option)
Rental companies pass on the fee directly, often with an added service charge. There are two models here:
- The Flat Rate: Many companies (e.g., Blue Rental Car) charge a flat rate of approx. 1,550 ISK (approx. 11€ / $13) per day. This is worth it if you drive a lot (over 220 km/day). If you stay in one place longer, you’ll end up paying more
- Per-kilometer rate: Companies like Hertz often charge the base rate plus an administrative fee (approx. 8.69 ISK/km total). A full lap of the Ring Road (1,500 km) costs approx. 13,000 ISK (approx. 90€ / $105) in tolls.
2. With your own vehicle (ferry)
For photographers arriving by ferry with their own camper or SUV, short stays are more expensive because time-based flat rates apply:
- Up to 10 days: approx. 96€ / $112 (car) and 57€ / $66 (motorcycle)
- 11 to 20 days: approx. 144€ / $168 (car)
- Over 30 days: Only then does the billing switch to a per-kilometer rate.
The “hidden” costs
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RV: If your RV weighs more than 3.5 tons, the cost increases (approx. 6.7 cents/km for vehicles over 3.5 tons; approx. 7.2 cents/km for vehicles over 5 tons).
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Tunnels: The new fee does not replace the tunnel toll! The Vaðlaheiðargöng Tunnel (Akureyri to Húsavík) still costs approx. 2,150 ISK extra per trip. Be sure to register online in advance to avoid penalties.
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Trailers: Good news for trailer enthusiasts: Trailers under 3.5 tons are exempt from the per-kilometer fee.
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Parking fees: In addition to road tolls, almost all top attractions have introduced parking fees in recent years. At many locations, cameras record your license plate as you enter.
Cost: Usually around 1,000 ISK (approx. 7€ / $8) per day/location.
The “Pay-to-View” list (as of 2026):
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South: Seljalandsfoss, Skógafoss (new since 2025), Reynisfjara, Jökulsárlón, Skaftafell, Fjaðrárgljúfur, Sólheimajökull.
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Golden Circle & West: Þingvellir, Geysir, Kerið (per person), Kirkjufell, Ytri-Tunga.
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North: Hverir (often more expensive), Hverfjall, Stuðlagil Canyon.
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Still free (insider tips): Gullfoss and Dettifoss are among the last “giants” that do not yet charge a park fee. The “small” glacier lagoon Fjallsárlón is also often still free.
All important parking fees in Iceland as of April 2026 in a compact and printable DIN A4 format for your trip.
A zero-sum game for internal combustion engines?
For drivers of a traditional 4x4 with an internal combustion engine, the cost balance remains almost neutral: the savings on fuel almost exactly offset the new toll for an average trip around the ring road.
It will be significantly more expensive, however, for electric car users, as they pay the full toll but don’t benefit from cheaper fuel. Motorcyclists are now also paying a distance-based fee for the first time (approx. 2.8 cents/km).
Our Tip:
Pay attention to the fine print when booking a rental car. If you’re planning an intensive scouting tour covering many kilometers, the daily flat rate is often the less stressful option. If you’re staying in one place for extended periods, the per-kilometer billing is a better option.
New in April 2026: Digital Borders and Potential Delays
Besides the new road fees, there is a significant change for international travelers arriving in Iceland. Starting April 10, 2026, Iceland (along with other Schengen countries) has implemented the new digital Entry/Exit System (EES).
What you need to know:
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Biometric Data: The system captures fingerprints and facial recognition data, replacing traditional passport stamps for non-EU/EEA citizens.
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Expect Delays: Initial reports from European hubs like Milan show significant bottlenecks, with some passengers even missing flights due to long queues. As Keflavík (KEF) is the main gateway, processing times during the peak season (May–September) are expected to increase.
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Our Advice: Arrive at the airport significantly earlier than usual for your flight to or from Iceland. If you have a tight connection or a scheduled rental car pickup, factor in at least an extra hour for border processing.
Despite potential extra costs and possibly longer wait times, Iceland is still well worth the trip! We wish you the best of luck on your next photo tour on the island!
Note: All ISK prices are based on April 2026 rates. Since the exchange rate fluctuates, you should check the current rates shortly before your trip.
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