Road Tolls and Parking Fees in Iceland

Are There Toll Roads in Iceland?

Yes, but not many! Unlike some European countries, Iceland doesn't have a widespread toll road network. Most roads, including the majority of the famous Ring Road (Route 1), are free to drive.

However, there are currently two locations where drivers must pay a toll:

Prices are for passenger vehicles under 3.5 tonnes, as of October 2026.

Both toll roads offer a shorter and more convenient alternative to existing free routes. They're particularly useful during winter, as the alternative roads can be more challenging to drive and may receive less winter maintenance.

The good news is that you don't have to pay these tolls if you prefer to take the free alternative roads, provided they're open and conditions allow safe travel.

Both tolls operate electronically, meaning there are no toll booths where you can stop and pay. Instead, cameras record your vehicle's registration number, and you pay online.

Important: Each toll is charged per crossing. If you travel through the same location twice, you'll need to pay for both journeys.

Where Are Iceland's Toll Roads Located?

The two toll locations are on different sections of the Ring Road:

• Vaðlaheiði Tunnel: East of Akureyri, on the road towards Goðafoss and Lake Mývatn.
• Hornafjarðarfljót Bridge: Near Höfn in Southeast Iceland, on the Ring Road between the Jökulsárlón area and Höfn.

If you're planning to drive the entire Ring Road, you'll likely encounter both locations unless you choose the free alternatives.

There's also the Hvalfjörður Tunnel, north of Reykjavík, but this tunnel has been free to use since 2018.

Vaðlaheiði Tunnel Toll in North Iceland

The Vaðlaheiði Tunnel is located in North Iceland, around 10 minutes' drive from Akureyri. Opened in 2018, the 7.5-kilometre tunnel connects the Eyjafjörður area with the eastern side of the Vaðlaheiði mountain.

If you're driving from Akureyri towards Goðafoss, Lake Mývatn or Húsavík, you'll likely come across it.

Before the tunnel opened, drivers had to cross the Víkurskarð mountain pass, a winding road that can be challenging during winter.

The tunnel provides a shorter, more direct route that avoids the mountain pass and generally offers better driving conditions, particularly during periods of snow, ice or strong winds.

_{Photo by tunnel.is}

How Much Does the Vaðlaheiði Tunnel Cost?

The price depends on your vehicle's weight.

Most rental cars, SUVs and smaller campervans fall into the first category.

For example, if you drive from Akureyri through the tunnel towards Lake Mývatn and later return through the same tunnel, you'll pay 4,432 ISK in total.

How Do You Pay the Vaðlaheiði Tunnel Toll?

There are no payment booths at the tunnel entrance or exit. Instead, you must pay electronically.

You can pay online through the official websites:

• www.tunnel.is
• www.veggjald.is

You can pay up to 24 hours before or 24 hours after driving through the tunnel. To make your payment, you'll need your vehicle's registration number and a valid payment card.

If you've rented a car in Iceland, you'll find the registration number on the vehicle and in your rental documents. We recommend paying shortly after your journey so you don't forget.

What Happens If You Don't Pay the Tunnel Toll?

Cameras automatically record your vehicle's registration number when you pass through the tunnel.

If the toll hasn't been paid within the permitted period, a payment claim is sent to the vehicle's registered owner. If the claim remains unpaid by its due date, additional collection charges may apply.

For rental cars, the claim is normally sent to the rental company. The company may then charge the renter for the outstanding toll and any applicable administration fees.

To avoid additional charges, it's best to pay directly on the official website within the 24-hour payment window.

Is the Vaðlaheiði Tunnel Worth Taking?

In most cases, yes, particularly during winter. However, taking the tunnel isn't compulsory. If you'd prefer to avoid the toll, you can use the old Víkurskarð mountain road instead.

The best option depends on three factors.

1. Weather and road conditions

During summer, Víkurskarð can be a pleasant alternative when the road is open and conditions are good.

In winter, however, snow, ice and poor visibility can make the mountain pass considerably more difficult. The road may occasionally close because of hazardous conditions.

The Vaðlaheiði Tunnel is generally the safer and more reliable choice during challenging winter weather, although drivers should always check current road conditions.

2. Cost

Víkurskarð is free to drive, while the tunnel costs 2,216 ISK for a standard passenger car.

If you're travelling on a budget and the mountain road is safe and open, taking Víkurskarð allows you to avoid the toll.

3. Driving time

The tunnel shortens the journey by approximately 16 kilometres and can save around 10–15 minutes compared with the mountain pass.

It also avoids the winding mountain road, making the drive more straightforward.

Our recommendation: If you're visiting Iceland in winter or during poor weather, the tunnel is usually worth the additional cost for a shorter and more comfortable journey. In summer, the free Víkurskarð route can be a good alternative when conditions are favourable.

Always check umferdin.is for current road conditions before setting off.

Hornafjarðarfljót Bridge Toll in Southeast Iceland

Since September 2026, Iceland has had a second toll location on the Ring Road.

The new Hornafjarðarfljót crossing is located in Southeast Iceland, near the town of Höfn.

The new road was developed to improve driving conditions and shorten journeys through the Hornafjörður area. It reduces the Ring Road distance by approximately 12 kilometres and replaces a longer route that included several single-lane bridges.

For travellers driving between Jökulsárlón Glacier Lagoon and Höfn, it's an important addition to be aware of.

How Much Does the Hornafjarðarfljót Toll Cost?

The toll depends on the weight of the vehicle.

Most travellers renting a standard car, SUV or smaller campervan will pay 1,500 ISK per crossing.

If you drive across the bridge twice, you'll need to pay for both journeys.

How Do You Pay the Hornafjarðarfljót Toll?

Like the Vaðlaheiði Tunnel, the Hornafjarðarfljót toll uses an electronic payment system.

There are no toll booths or payment machines at the crossing. Cameras automatically record vehicles passing through.

Rental car customers can pay online at: www.spolur.is

You must pay within 24 hours after crossing.

Simply enter your vehicle's registration number and follow the instructions to complete your payment. If you don't pay within this period, the rental company will receive the charge and may add an administration fee when passing it on to you.

Is There an Alternative Free Route?

Yes! Just like the Vaðlaheiði Tunnel, the new Hornafjarðarfljót crossing is optional.

If you'd prefer to avoid the toll, you can use the former Ring Road, now called Hornafjarðarvegur (Road 987).

However, there are a few differences worth considering.

1. Driving distance and time

The new toll road shortens the journey by approximately 12 kilometres, saving around 15–20 minutes depending on the route and conditions. The free alternative is longer and follows the older road through the area.

2. Road conditions

The new road offers a more modern route, with improved infrastructure and fewer single-lane bridges.

The older route remains available, but it doesn't receive the same level of winter maintenance as the new Ring Road. This means that during winter, the free alternative may be more difficult to drive, particularly in snow or icy conditions.

3. Cost

The old road is free to drive, while the new crossing costs 1,500 ISK for a standard passenger car. If you're travelling during summer and the weather is good, the free route may be worth considering.

Our recommendation: The new Hornafjarðarfljót crossing is generally the more convenient option, especially in winter. However, if you'd prefer to save money and the conditions are suitable, the old road remains a free alternative.

Iceland's 2026 Road Tax: What Rental Car Drivers Need to Know

In addition to toll roads, Iceland introduced a new nationwide road usage tax on 1 January 2026.

This is different from the tolls charged at Vaðlaheiði and Hornafjarðarfljót.

The kilometre-based road tax, known locally as kílómetragjald, applies to vehicles using Iceland's roads, regardless of whether they run on petrol, diesel, electricity or another energy source.

How Much Is the Road Tax in Iceland?

For standard passenger cars and SUVs weighing up to 3.5 tonnes, the national rate is 6.95 ISK per kilometre.

However, the way this tax is charged to rental car customers can differ between rental companies.

Some companies calculate the charge according to the distance driven, while others apply a fixed daily fee.

How Does Lava Car Rental Charge the Road Tax?

At Lava Car Rental, the road tax is charged at a fixed rate per rental day.

This makes it easier to plan your travel budget, as you know the daily charge in advance rather than calculating the tax for every kilometre of your journey.

The road tax is separate from your rental vehicle price and is also separate from toll road and parking charges.

When comparing rental car prices in Iceland, it's worth checking how each company handles this tax so you understand the full cost of your booking.

Parking Fees at Popular Attractions in Iceland

Beyond road tolls, parking fees are another expense to consider when planning your Iceland road trip.

Many of Iceland's natural attractions are free to visit, but parking is increasingly subject to a charge.

These fees help support visitor facilities, maintain parking areas and manage the growing number of people visiting popular locations.

You will commonly encounter parking fees along the Golden Circle, the South Coast and at national parks.

Iceland Attraction Parking Fees at a Glance

Here are some popular attractions where parking charges apply.

Prices are indicative for standard passenger vehicles with up to five seats, as of October 2026. Fees may change and can vary by vehicle category, parking area or length of stay. Check the signs or official payment platform when visiting.

Let's take a closer look at what you need to know about parking at each location.

Þingvellir National Park

Þingvellir National Park is one of the three main attractions on the Golden Circle and a UNESCO World Heritage Site.

Although the national park is free to visit, parking charges apply at the main designated parking areas.

For a standard passenger car with up to five seats, the fee is 1,000 ISK. One payment generally allows you to use the park's designated paid parking areas throughout the same day.

You can pay at the available payment machines or online through checkit.is.

Remember to enter your vehicle's registration number correctly when paying.

Seljalandsfoss Waterfall

Seljalandsfoss is one of South Iceland's most famous waterfalls, known for the walking path that takes visitors behind the falling water when conditions allow. The waterfall itself is free to visit, but the main parking area is subject to a fee.

You can pay using the payment facilities provided at the car park. Check the current amount displayed on arrival, as parking rates may change.

During winter, the path behind the waterfall may be closed because of slippery or dangerous conditions, so always follow the signs and local safety advice.

Reynisfjara Black Sand Beach

Located near Vík on Iceland's South Coast, Reynisfjara is famous for its dramatic black sand, basalt columns and powerful Atlantic waves. Parking charges vary depending on which car park you use.

The parking area closer to the beach generally costs around 1,000 ISK for a standard vehicle, while the upper parking area is approximately 750 ISK.

Parking is usually charged in three-hour periods, and payment can be made through Parka.

Safety reminder: Reynisfjara is known for dangerous sneaker waves that can unexpectedly reach far up the beach. Always keep a safe distance from the ocean, follow warning signs and respect any closures.

Skaftafell, Vatnajökull National Park

Skaftafell is a popular hiking destination within Vatnajökull National Park, known for its glaciers, mountain scenery and walking trails.

Parking costs 1,110 ISK for a standard passenger car with up to five seats.

The fee is valid until midnight on the day of payment. You can pay through the available payment facilities or through Parka.

Money-saving tip: If you visit both Skaftafell and Jökulsárlón on the same day, you may qualify for a 50% discount on the second regional parking fee.

Jökulsárlón Glacier Lagoon

Jökulsárlón is one of Iceland's most memorable natural attractions, where large icebergs float through a glacier lagoon before making their way towards the Atlantic Ocean.

The nearby Diamond Beach is another popular stop. Parking at Jökulsárlón costs 1,110 ISK for a standard passenger car with up to five seats.

The regional parking fee is valid until midnight on the date of payment.

If you've already paid an eligible regional fee at Skaftafell earlier that day, you can benefit from the 50% discount when visiting Jökulsárlón. The same principle applies when visiting these attractions in the opposite order.

Fagradalsfjall Volcanic Area

The Fagradalsfjall area on the Reykjanes Peninsula became internationally famous following volcanic eruptions beginning in 2021.

Today, the wider volcanic landscape attracts visitors interested in seeing Iceland's extraordinary geology and relatively recent lava fields.

Parking charges apply at designated visitor parking areas, although the exact fee depends on the location.

Before heading there, check the latest accessibility information, as volcanic activity, gas hazards and changing safety restrictions can affect which hiking routes and areas are open.

Never enter restricted areas or walk on recent lava fields.

Landmannalaugar

Landmannalaugar, in the Icelandic Highlands, is famous for its colourful rhyolite mountains, hiking trails and geothermal scenery.

During the summer visitor season, parking reservations are required for private vehicles arriving during designated daytime hours.

For the 2026 season, the parking and service fee was 1,500 ISK for standard passenger cars with up to five seats. Reservations can be made through the official reservation service or Parka.

Important: Landmannalaugar is accessible by Highland roads that require a 4x4 vehicle. These roads are normally open only during the summer months, depending on conditions.

How to Pay for Parking in Iceland

Paying for parking in Iceland is generally straightforward, although methods differ depending on the location.

Some parking areas have payment machines, while others use mobile apps or online payment systems.

Using the Parka App

One of the most useful apps for driving around Iceland is Parka.

The app allows you to pay for parking at many popular attractions and other designated parking areas around the country.

To use Parka:

1. Download the app or visit the website.
2. Select the parking location.
3. Enter your vehicle's registration number.
4. Choose the appropriate parking option and complete your payment.

Some parking areas also allow you to pay after leaving, but payment deadlines vary.

We recommend paying while you're still at the location to avoid forgetting.

Paying at Parking Machines

Some attractions have payment machines where you can pay directly using a credit or debit card. These machines may ask you to enter your vehicle's registration number rather than display a physical parking ticket.

Always check that you've entered the number correctly and follow the instructions displayed.

Automatic Number Plate Recognition

Many Icelandic attractions now use cameras to record vehicles entering and leaving their parking areas. This means you might not encounter a traditional parking barrier or ticket machine when arriving.

However, that doesn't necessarily mean parking is free! Always look for signs explaining the parking rules, fees and payment methods.

If parking is chargeable and you leave without paying, you may receive an additional fee.

Parking in Reykjavík

Parking in Reykjavík works differently from parking at tourist attractions.

The city has several paid parking zones, commonly identified as P1, P2, P3 and P4, each with its own hourly rates and charging periods.

Parking closer to the city centre is generally more expensive. You can pay using designated parking machines or supported payment apps.

Some areas offer free parking outside their charging hours, but the rules depend on the zone.

For more detailed information, read our guide to parking in Reykjavík.

What Happens If You Don't Pay a Toll or Parking Fee in Iceland?

Forgetting to pay a toll or parking fee in Iceland can result in additional charges.

Many toll roads and tourist parking areas use automatic number plate recognition, which allows operators to identify vehicles that have not paid.

If you miss a payment, the operator may send a payment claim to the registered owner of the vehicle, sometimes with an additional collection or penalty fee.

When using a rental car, that registered owner is normally the rental company.

What Happens If Lava Car Rental Receives an Unpaid Fine?

When renting a car with Lava Car Rental, you're responsible for paying road tolls, parking charges and any fines incurred during your rental period.

If Lava Car Rental receives a fine or unpaid charge linked to your rental vehicle while it was in your possession, we will pass the outstanding amount on to you, along with an additional handling service fee of 4,500 ISK.

This fee covers the administration involved in processing unpaid charges.

You can find more information in our Terms & Conditions.

Make Things Easier: Add Road Tolls to Your Lava Car Rental Booking

Don't want to worry about remembering to pay the Vaðlaheiði Tunnel or Hornafjarðarfljót Bridge tolls during your holiday?

At Lava Car Rental, we make things easier by allowing you to add road tolls directly to your booking.

With this optional service, we take care of the toll payments on your behalf, so you don't have to worry about visiting different payment websites or missing a payment deadline.

It's a convenient option if you're planning to drive around Iceland and would rather focus on enjoying your trip.

You can select this option when booking your rental car with us.

How to Avoid Additional Charges

A few simple habits can help you avoid unexpected expenses during your road trip:

• Pay tolls promptly. Don't leave payments until the end of your holiday, especially when different toll locations have different payment rules.
• Consider adding tolls to your booking: If you're renting with Lava Car Rental, our optional toll service can take care of these payments for you.
• Check parking signs. Even if there are no barriers or machines, parking might still be chargeable.
• Use the correct registration number. Double-check your rental vehicle's licence plate when making a payment.
• Keep payment confirmations. Save receipts or email confirmations in case you need them later.
• Check the rental agreement. Familiarise yourself with any administration fees that may apply to unpaid charges.

Taking a few minutes to pay as you travel can save you money and unnecessary hassle.

Explore Iceland with Confidence

A little preparation goes a long way when planning an Iceland road trip. By knowing where road tolls and parking fees apply, and how to pay them, you can avoid unexpected charges and spend more time enjoying the journey.

Remember, Iceland's toll roads are optional. Both offer shorter and generally more convenient routes, especially in winter, but free alternatives are available if you'd prefer to avoid the extra cost and conditions allow.

Before setting off, make sure to check the latest road and weather conditions, particularly if you're travelling during winter or visiting more remote parts of Iceland.

At Lava Car Rental, we believe exploring Iceland should be simple and stress-free. As a local, family-owned company, we're here to help you feel confident on the road, from choosing the right vehicle to preparing for your adventure.

Whether you're planning a short Golden Circle trip, exploring the South Coast or driving the entire Ring Road, we'll help you find a vehicle suited to your journey.

Explore our rental cars and start planning your Iceland road trip today.