Table of Contents
- Key Takeaways: Iceland Trip Cost in 2026
- How Much Does a Trip to Iceland Cost in 2026?
- Flight Costs to Iceland in 2026
- Rental Car Costs in Iceland
- Accommodation Costs
- Activities & Tours
- Food & Drink Costs
- Taxes, VAT & Refunds
- Key Factors Influencing Prices in 2026
- Sample 7-Day Iceland Travel Budget
- How to Save Money on Your 2026 Iceland Trip
If you’re considering a trip to Iceland in 2026, chances are likely that you’re wondering just how much it’s going to cost you. The country isn’t known as a necessarily budget-friendly travel destination, historically. However, the cost of an Iceland trip in 2026 may end up being even pricier than normal, thanks to both inflation and increased demand related to the August total solar eclipse.
To help you plan in advance, we’re breaking down the travel cost in Iceland for 2026, including flights, accommodations, activities, food and rental cars.
Key Takeaways: Iceland Trip Cost in 2026
- For a 7-day trip, most travellers can expect to spend roughly €865–1,730 / $925–1,855 / ISK 130,000–260,000 - per person on ground costs (car, fuel, accommodation, food, activities) – based on two people travelling together and sharing a double room – before flights, depending on season and travel style.
- August 2026 (eclipse month) will be the most expensive time to visit, with higher prices and limited availability on flights, hotels and rental cars.
- On average, you’ll spend around 30–45% of your budget on your rental car and insurance, and 30–40% on accommodation, with the rest split between food, fuel, tours and parking.
- You can save significantly by travelling in the shoulder seasons (spring or autumn), choosing a smaller car you genuinely need, mixing restaurant meals with self-catering and focusing on free natural sights.
- Booking your rental car, flights and accommodation as early as possible is essential for 2026, especially if you’re planning to travel in July or August.
How Much Does a Trip to Iceland Cost in 2026?
Your total cost of an Iceland trip in 2026 will depend on a few key factors:
- What time of year you decide to travel
- What kind of accommodations you prefer
- Which activities you’re coming to Iceland for
- What rental car you book and how far you drive it
It’s worth noting that there’s one big event also influencing costs in Iceland in 2026. The solar eclipse on August 12th, 2026, is expected to bring in a large number of tourists, as much as two weeks prior to and following the event.
As such, if you’re planning to visit Iceland at any time during August, you should expect your travel costs to be higher, and demand to be greater. You’ll need to book as far in advance as possible to get the best travel prices and to ensure you can actually book things like a hotel room and rental car at all, before they sell out.
When putting together a budget for your upcoming trip, these are the costs you’ll want to include:
- Flights
- Rental car booking
- Fuel or EV charging for the rental car
- Accommodations
- Food and drink
- Activities and tours
- Road fees and parking
- Rental car insurance
- VAT and potential refunds
Flight Costs to Iceland in 2026
Expect flight costs to Iceland in 2026 to vary heavily throughout the year, with prices changing according to the season, where you’re visiting from, demand and how early you book your flights.
As always, you can expect the highest prices throughout the summer, as that’s Iceland’s peak travel period, but even more so, this year, around the August eclipse.
If you’re looking for the cheapest flight deals possible, try to book your trip and flight for early spring 2026 or late fall 2026.
✈️ Approximate Round-Trip Flight Costs to Iceland (Typical ranges; prices vary with season and departure city.)
| Departure Region | Approx. Round-Trip Cost (per person) | Notes |
| North America – East Coast | €370–740 / $400–800 / ISK 60,000–120,000 | Summer months push prices up; booking early helps. |
| North America – West Coast | €460–920 / $500–1,000 / ISK 75,000–150,000 | Longer distance = higher fares; best to book in advance. |
| Europe | €200–400 / $215–430 / ISK 30,000–60,000 | Shorter flights and good off-peak deals. |
| Asia / Southeast Asia | €745–1,400 / $800–1,500 / ISK 120,000–230,000 | Long-haul with connections; wide variation by departure city. |
Whenever your expected travel dates, though, be sure to book as far in advance as you can.
Rental Car Costs in Iceland
The cost of a rental car in Iceland in 2026 will likewise vary according to when you’re travelling, but, no matter the season, a car rental will often be your most budget-friendly way of getting around the island.
You’ll find that public transit isn’t really an option in Iceland, unless you stay in Reykjavik exclusively. For getting around otherwise, your only other option beyond a rental car is to purchase guided or group tours. These typically cost 30–100% more than renting a car, particularly if you’re planning on exploring around the island for multiple days. Additionally, if you’re travelling with others, you can split the cost of the rental, fuel and similar.
Plus, renting a car in Iceland just comes with the extra added benefit of more freedom, as you can travel where you want, when you want, at your own pace.
Vehicle Options & Price Ranges
You’ll have four primary vehicle options when booking your Iceland car rental:
Small economy cars are an excellent choice for driving around the Ring Road in the summer months, as either a solo traveller or with one other person, while saving a little bit of money.
Meanwhile, 4x4 vehicles are a must for winter months or if you want to visit the Highlands during the summer. Note that 4x4 vehicles are actually required by law whenever driving through the Highlands.
Then, campervans are great if you want to bundle the cost of your rental car and accommodations into one price, or if you’re just interested in the Iceland camping experience.
Lastly, electric vehicles are becoming increasingly popular as a cost-effective option that helps you save on fuel.
🚗 Approximate Rental Car Prices in Iceland (Per day, per vehicle. Prices vary by season and availability.)
| Vehicle Type | Summer (Jun-Aug) | Shoulder (Apr-May, Sep-Oct) | Winter (Nov-Mar) | Notes |
| Small 2WD (economy/compact) | €75–120 / $80–130 / ISK 11,000–18,000 | €55–95 / $60–100 / ISK 8,000–14,000 | €40–80 / $45–85 / ISK 6,000–12,000 | Ideal for paved roads and summer travel. |
| Compact SUV / Crossover | €110–170 / $120–185 / ISK 16,000–25,000 | €80–130 / $85–140 / ISK 12,000–19,000 | €65–115 / $70–125 / ISK 9,000–16,000 | More space and higher ground clearance. |
| 4×4 (true AWD/4WD) | €150–270 / $160–290 / ISK 22,000–40,000 | €110–200 / $120–215 / ISK 16,000–30,000 | €85–160 / $90–170 / ISK 12,000–24,000 | Recommended for winter conditions and F-roads. |
| Campervan for 2 | €153–253 / $167–275 / ISK 23,000–38,000 | €120–200 / $130–217 / ISK 18,000–30,000 | €100–167 / $109–181 / ISK 15,000–25,000 | “Hotel on wheels”, ideal in summer |
As you can see, your costs can differ greatly depending on which vehicle you choose to rent.
However, think twice before you sacrifice comfort and space in the name of a more affordable rental, particularly if you’re planning an Iceland road trip. If you’re spending hours in your rental vehicle, you’ll be glad you invested in a safe, comfortable car that can easily fit you, your family or friends and all your luggage.
Insurance Costs
The cost of a rental car in Iceland in 2026 furthermore includes the cost of insurance. Car rental insurance ensures you don’t have to pay out of pocket for damage to the vehicle caused by weather, gravel, volcanic ash or strong winds.
There are a few car rental insurance policy options:
- A basic Collision Damage Waiver is usually included in the price of your rental already, and covers all collision damages.
- A Super Collision Damage Waiver is an add-on that lowers your deductible.
- Gravel Protection is an extra that covers you if the vehicle is damaged from gravel flying up off of the road and hitting the car.
- Sand & Ash Protection is an extra that covers you if the vehicle is damaged from blowing sand or ash, a problem that’s particularly an issue in Iceland’s South Coast region.
- A full coverage plan, meanwhile, offers all this and reduces risk and stress.
🛡️ Rental Car Insurance Options in Iceland (Approx. daily cost per vehicle.)
| Insurance Type | What It Covers | Recommended For | Approx. Daily Cost |
| Basic CDW | Collision damage with deductible | All rentals (usually included) | Included / €0–5 / $0–6 / ISK 0–800 |
| SCDW (Super CDW) | Significantly lowers deductible | Longer trips, new or nervous drivers | €10–20 / $11–22 / ISK 1,500–3,000 |
| Gravel Protection |
|
Ring Road trips, gravel routes | €7–12 / $8–13 / ISK 1,000–1,800 |
| Sand & Ash Protection | Damage from sandstorms and volcanic ash | South Coast, spring/autumn travellers | €8–15 / $9–17 / ISK 1,200–2,200 |
| Theft Protection | Theft of the vehicle | Urban parking, peace of mind | €3–7 / $3–8 / ISK 450–1,000 |
| Tire Protection | Punctures, blowouts & repair/replacement of tires | All travellers, especially Highlands or gravel areas | €10–23 / $11–25 / ISK 1,500–3,500 |
As you can see, some of these coverage options cost as little as a few dollars per day, making them well worth it, for the peace of mind they can provide.
If you book your rental car on the Lava Car Rental website, many insurances are already included.
Extras
The cost of a rental car in Iceland in 2026 can additionally include a few extras. Some of these you may need, some of them you may not:
- GPS or Wi-Fi units
- Child safety seats
- Additional drivers on the policy
- Studded tires in winter, though these are often included in the cost your rental
🎒 Average Prices for Car-Rental Extras in Iceland
| Extra | Typical Price Per Day (ISK / EUR / USD) | Notes |
| Additional driver | €6–8 / $7–9 / ISK 1,000–1,200 | Usually charged per extra driver; some companies include one for free. |
| GPS navigation device | €11–13 / $12–14 / ISK 1,600–1,800 | Optional because most travellers rely on their phones. |
| WiFi hotspot / portable router |
|
Typically comes with limited daily data; ideal in remote areas. |
| Child / baby seat | €6–7 / $7–8 / ISK 900–1,000 | Infant seats and larger child seats priced similarly. |
| Booster seat | €3–5 / $4–6 / ISK 450–800 | For older children (usually from 4+). |
| Studded tires | Usually free in winter | Winter tires are fitted automatically from 1 Nov to 15 Apr. |
| Snow chains | Not offered in Iceland | Illegal on Icelandic roads due to surface damage. |
Of these four extra costs, the GPS, if there’s not already one built into the vehicle, and additional drivers on the policy are the most recommended. Additionally, if your child is under 135 centimetres in height, they’re required to use a child safety seat by Icelandic law.
Do note that the prices for these extra options can vary significantly by rental company, but you can pretty much always expect them to cost the same, regardless of demand or season. However, you still need to book extras in advance, as, if demand is high, the rental car company may run out of some of them, like child seats.
Fuel & Charging Costs
The cost of a rental car in Iceland in 2026 will also include fuel or charging. Overall, fuel costs in Iceland currently remain high due to global inflation and transportation expenses. As such, renting an electric vehicle remains the cheaper of the two options, especially if you’re planning on a long-distance road trip.
You can anticipate how much you’ll pay in fuel or charging, based on where you plan to drive during your trip.
⛽ Rough Fuel Math (to plan costs)
| Vehicle |
|
Daily Driving (example) | Estimated Litres/Day | Approx. Daily Fuel Cost | What That Means |
| Small 2WD (petrol) | 5.5–8.5 L / 100 km |
|
11–13 L | €24–29 / $26–31 / ISK 3,600–4,300 | Efficient for Ring Road. |
| Crossover / SUV (petrol) | 7-9 L / 100 km |
|
|
|
More space; higher fuel use. |
| Campervan for 2 | 7-9 L / 100 km | 200 km | 14–18 L | €31–40 / $34–47 / ISK 4,600–5,900 | All-in-one travel and sleeping solution. |
| 4×4 (diesel) |
|
|
15–20 L |
|
Better for winter and F-roads. |
As you plan out how much fuel you can expect to use, keep in mind that remote areas of Iceland may have limited fuel stations, as well as few charging stations for electric vehicles. However, EV usage has been growing so you can expect to find charging stations throughout and around Reykjavik, the South Coast, Akureyri and any other major towns.
Road Fees
You only face one toll road when driving around Iceland, and that’s the road that goes through the Vaðlaheiði tunnel, north of Akureyri. If you don’t drive to this part of the country, it’s not something you’ll need to worry about.
🚧 Toll & Road-Tax Summary in Iceland
| Fee Type |
|
Approximate Amount |
| Vaðlaheiði tunnel toll (car ≤3.5 t) | One-way trip through the tunnel | ISK 2,150 / €14 / $15
|
| Vaðlaheiðargöng tunnel toll (vehicle 3.5–7.5 t) | Larger van or small truck |
|
| Road-tax for EVs (electric cars) |
|
|
| Road-tax for plug-in hybrids | Charged per km driven | 2 ISK/km / €0.01 / $0.01 |
| General roads (most of Iceland) |
|
Free |
The only other toll is a road tax that applies to electric, hydrogen and hybrid vehicles. The tax is 6 ISK/kilometre for electric vehicles and 2 ISK/kilometre for hybrid vehicles.
Parking
And finally, the last cost of a rental car in Iceland in 2026 will be parking.
Paid parking is pretty standard in Reykjavik, and you’ll otherwise find parking fees at some attractions throughout the country. Do note that these attraction-adjacent parking lots can fill up very quickly.
🅿️ Average Parking Fees in Iceland
| Location / Type |
|
Notes |
| Reykjavík – Zone P1 (city centre) | 630 ISK/hour / €4 / $4.50 | Most central and most expensive zone. Pay-and-display or app.
|
| Reykjavík – Zones P2 | 230 ISK/hour / €1.5 / $1.8 |
|
| Reykjavík – Zone P3 & P4 | 230 ISK/hour / €1.5 / $1.8
|
|
| Popular natural sites (Skógafoss, Seljalandsfoss, Þingvellir National Park etc.) | 1,000 ISK/day / €7 / $7.50 | Full-day parking fee (not hourly). |
| Thermal lagoons (Blue Lagoon, Sky Lagoon, etc.) | Usually free | Included with entry unless there’s a special event. |
| Small towns & rural areas | Mostly free | Paid parking mostly in major tourist hot spots. |
Parking tips
You can often pay for your parking using a mobile app like Parka or EasyPark, so be sure to download these apps before you begin your Iceland road trip.
Do note that it is possible to find some free parking in more rural areas, but don’t assume that any parking is ever free. Always look out for signage that will inform you of necessary fees. If you do not pay the fees, you could incur a fine.
Accommodation Costs
When looking at all your costs for an Iceland trip in 2026, the one that’s most difficult to predict is the cost of your accommodations. These costs can vary significantly.
It’s always a safe bet, though, that accommodations will cost more in the summer and you can expect exceptionally high pricing in August, in the weeks surrounding the eclipse.
🏨 Typical Nightly Prices in Iceland for Two People (2026)
| Type |
|
Winter | Summer | Eclipse Period |
| Hostel bed (dorm) | Basic, social, clean |
|
ISK 10,000–16,000 / €70–120 / $76–132 | ISK 14,000–22,000 / €100–160 / $110–176 |
| Guesthouse (double) | Breakfast often included; homely |
|
|
|
| Farm stay / countryside guesthouse |
|
|
ISK 19,000–28,000 / €130–200 / $143–220 |
|
| Mid-range hotel (double) | Good comfort; prices spike in summer
|
ISK 17,000–25,000 / €120–180 / $132–198 | ISK 25,000–36,000 / €180–260 / $198–286 | ISK 36,000–50,000 / €250–350 / $275–385 |
| Cottage / Airbnb (2–4 people) | Strong value for groups; car is essential | ISK 17,000–31,000 / €120–220 / 132–$242 | ISK 26,000–43,000 / €180–300 / $198–330 | ISK 40,000–65,000 / €280–450 / $308–495 |
| Premium / boutique hotel | Modern, stylish, high comfort |
|
ISK 43,000–72,000 / €300–500 / $330–550 | ISK 65,000–100,000+ / €450–700+ / $495–770+ |
It’s advised that you book your stay in advance, for the best deals. Additionally, if you’re specifically looking to stay in a hostel or similarly budget-friendly option, book even faster, as they sell out space quickly.
If you’re travelling in a group, you can often find a better deal by booking a home stay and splitting the cost.
Activities & Tours
Some activities and tours in Iceland are more expensive than others. Often, glacier hikes, ice cave tours and similar guided, winter-only activities are most expensive. Meanwhile, northern lights hunting, whale watching excursions and volcano tours may be more affordable.
Self-guided sightseeing — such as travelling around to all of Iceland’s waterfalls or a bunch of Iceland’s hot springs — is free, though.
🌋 Typical Tour Prices in Iceland (2026)
| Activity |
|
Notes |
| Lagoon entry |
|
Prices vary by package. |
| Northern Lights tour | ISK 11,000–17,000 / €80–140 / $88–154 | Sept–Apr. |
| Whale watching | ISK 10,000–16,000 / €70–110 / $77–121 |
|
| Volcano / lava tour | ISK 11,000–20,000 / €80–150 / $88–165 | Depends on activity. |
| Glacier hike | ISK 14,000–22,000 / €100–160 / $110–175 |
|
| Silfra snorkelling |
|
|
| Ice cave tour | ISK 18,000–30,000 / €130–220 / $143–242 | Mostly in winter. |
If you’re planning on travelling to Iceland around the eclipse, book any guided tours or excursions quickly, before they sell out. You can enjoy 5% savings on all tours, when you use the LAVATOURS discount.
Food & Drink Costs
Food and drink costs in Iceland in 2026 can be relatively high, but you can eat and drink on a budget with a few smart decisions.
🍽️ Typical Daily Food Costs per Person in Iceland (2026)
| Eating Style |
|
Notes |
| Mostly self-catering | ISK 3,000–4,500 / €20–30 / $22–33 |
|
| Mixed meals | ISK 5,000–9,000 / €35–60 / $38–66 |
|
| Eating out daily |
|
|
| Foodie experience | ISK 13,000–22,000+ / €90–150+ / $99–165+ | 3 restaurants with main dish + drink and dessert |
Rather than eating at a restaurant for every meal, go to a supermarket and local bakeries or gas stations for snacks and groceries. If you’ve rented a campervan, you can cook your own meals during a road trip. Some hostels also have cooking facilities that you can use.
Do note that alcohol purchases in Iceland are at a premium, due to taxation.
Taxes, VAT & Refunds
The VAT, or value-added tax, on goods in Iceland is around 24–25%, and this tax is added to the purchase of most items. As a traveller, you can actually claim a refund on this tax, when you leave the country. All you have to do is keep a hold of your receipt, and then the refunds are handled at Keflavik Airport.
While a minimum spend per receipt is required to receive a refund, getting them can absolutely be worth it if you purchased any outdoor gear, clothing or souvenirs during a trip.
Key Factors Influencing Prices in 2026
There are several factors that will continue to influence costs in Iceland in 2026, and the best place to keep an eye on changing economic and inflation trends is via the National Statistics Office.
Inflation
Iceland continues to see elevated inflation, and this inflation affects the cost of food, fuel, accommodations, labour, and similar services. As such, you can expect to pay higher prices in all of these areas, when visiting Iceland.
Seasonal Swings
As always, costs in Iceland in 2026 will continue to be impacted by the seasons and correlating traveller demand.
Summer, June through August, remains the peak season, when the greatest number of travellers want to come to Iceland, driving up prices. Meanwhile, winter remains the low season, except for around Christmas.
However, not all travellers want to visit during the harsh, dark winter months. By travelling to Iceland in the shoulder seasons of May–June or September–October, you can enjoy a blend of nice weather and cost savings.
Taxes on Cars
Vehicle tax policies are influencing rental car pricing in Iceland. Additionally, the nationwide shift to zero-emission vehicles will likely further impact fleet availability among rental car providers and, thus, their prices.
The Total Solar Eclipse in August 2026
Lastly, the biggest factor influencing costs in Iceland in 2026 is the total solar eclipse occurring in August.
As Iceland lies right in the path of totality, it’s expected that thousands upon thousands of visitors who might not normally come to Iceland will all flock to the island at the same time. As such, expect flights, hotels and rental car providers to sell out very early in the year, and that pricing on all of the above will spike for the full month of August.
If you’re planning to visit Iceland in August, book your rental car now.
Sample 7-Day Iceland Travel Budget
A. Budget Duo (2WD, Shoulder Season)
| Item |
|
Unit (ISK) | Total | Notes |
| Car hire (small 2WD) | 7 days |
|
ISK 70,000 / €470 / $500 | Basic cover included |
| Fuel | 7 days |
|
|
|
| Accommodation |
|
|
ISK 98,000 / €650 / $700 |
|
| Food (groceries + snacks) |
|
|
ISK 28,000 / €185 / $200 |
|
| Eating out (2 lunches) | 2 |
|
ISK 20,000 / €135 / $145 | Shared mains + drinks |
| Parking & attractions | - | - | ISK 8,000 / €55 / $57 | Mix of sites |
| Lagoon entrance for 2 | 1 | 8,500 | ISK 17,000 / €120 / $132 | One basic entrance to a lagoon |
| Estimated total (2 ppl) | - | - | ISK 262,000 / €1,755 / $1,884 | ≈ISK 131,000 per person |
B. Mid-Range Couple (Crossover, Summer)
| Item |
|
Unit (ISK) | Total | Notes |
| Car hire (crossover/SUV) | 7 days |
|
ISK 126,000 / €840 / $900 | Popular size for comfort |
| Fuel | 7 days |
|
|
|
| Accommodation |
|
|
ISK 196,000 / €1,310 / $1,400 |
|
| Food (mixed) |
|
|
ISK 49,000 / €330 / $350 |
|
| Eating out (4 lunches) | 4 |
|
|
|
| Parking & attractions | - | - | ISK 12,000 / €80 / $85 | Museums + sites |
| Lagoon entrance and 1 activity | 2 | 20,000 | ISK 40,000 / €280 / $308 | One basic entrance to a lagoon and one popular activity |
| Estimated total (2 ppl) | - | - | ISK 518,500 / €3,475 / $3,728 | ≈ ISK 259,250 per person |
C. Winter Comfort (4×4, Value Stays)
| Item |
|
Unit (ISK) | Total | Notes |
| Car hire (4×4 winter rate) | 7 days |
|
ISK 105,000 / €700 / $750 | Full cover recommended |
| Fuel | 7 days |
|
|
|
| Accommodation |
|
|
ISK 140,000 / €935 / $1,000 |
|
| Food (mixed) |
|
|
ISK 42,000 / €280 / $300 |
|
| Eating out (3 lunches) | 3 |
|
|
|
| Parking & attractions | - | - | ISK 10,000 / €67 / $71 | Mix of sites |
| Lagoon entrance and 1 activity | 2 | 20,000 | ISK 40,000 / €280 / $308 | One comfort entrance to a lagoon and one popular activity |
| Estimated total (2 ppl) | - | - | ISK 414,000 / €2,775 / $2,979 | ≈ISK 207,000 per person |
Over a week-long trip, here’s how your budget basically shakes out:
- You’ll spend 30–45% of your budget on your rental car and insurance
- You’ll spend 30–40% of your budget on accommodations
- You’ll spend 15–25% of your budget on food and drink
- You’ll spend 8–15% of your budget on fuel
- You’ll spend 3–8% of your budget on parking, attractions and miscellaneous costs
Use these guidelines to adjust your travel plans accordingly. If you find that you’re spending more than these percentages in certain areas, look for ways you can reduce your costs. For example, see how you could maybe drive less to save on fuel, or look for alternative accommodations options.
How to Save Money on Your 2026 Iceland Trip
There are a few very easy ways you can save money on your 2026 Iceland trip, as well as common budget mistakes that you should avoid.
Common budget mistakes:
- You didn’t buy enough insurance for your rental car — and now you have to pay extra fees because the car was damaged in inclement weather.
- You upgraded to a 4x4 vehicle when you didn’t really need more than an economy car.
- You ignored weather updates and spent time driving to attractions you couldn’t actually get out and see, meaning you wasted money on fuel.
- You ate out at restaurants for every single meal.
- You switched hotels every night, versus staying in one general area.
- You paid for airport transfers into Reykjavik, rather than picking up your rental car in Keflavik for free.
Overall money-saving tips:
- Book your rental car, flights and hotels as early as possible, particularly if you’re visiting Iceland in July or August.
- Don’t visit Iceland in August unless you’re specifically coming to see the eclipse.
- Don’t plan your entire trip around paid activities and spend plenty of time seeing the free sights as well.
- Use your rental car provider’s offered discounts for tours, fuel and more.
- Consider renting an electric vehicle to save on fuel.
While Iceland will never be the cheapest destination in Europe, with a bit of planning and the right travel dates, a 2026 trip can still fit a reasonable budget.
Need more help planning your trip to Iceland? Check out Lava Car Rental’s guides on renting a 4x4 vehicle, what kind of insurance you need for your trip, renting an electric vehicle and the best Iceland itineraries.
