Iceland’s kilometre fee is not a vignette and is not a charge for a particular road section. From 1 January 2026, Iceland charges according to the distance recorded on the odometer; for a passenger car or SUV up to 3.5 tonnes, the rate is ISK 6.95 per kilometre. It applies regardless of the powertrain, including petrol, diesel, hybrid and electric cars. (island.is)
The key question is whether you are driving a car from an Icelandic rental company or your own vehicle brought over by ferry. With a rental car, the operator deals with the state system, but the rental company may charge the cost to the renter under the agreement.
Who does Iceland’s kilometre fee apply to?
The fee applies to registered vehicles used in Iceland, and the rate depends on the permitted gross vehicle weight. The law covers cars, motorcycles, mopeds, tractors and certain trailers. Narrowly defined exemptions apply, for example, to some emergency or diplomatic vehicles. For cars up to 3.5 tonnes, the basic rate is ISK 6.95/km; for heavier vehicles, the rate increases by weight category. (althingi.is)
Iceland’s kilometre fee therefore does not apply only to electric cars. From 2026, the previous system for electric and plug-in hybrid cars was replaced by a system covering all ordinary vehicle categories. You do not pay at a toll booth: the odometer reading is what matters.
How is the fee calculated?
The calculation is based on the difference between the recorded odometer readings and the rate per kilometre. For 500 km in a passenger car up to 3.5 tonnes, the state fee alone is ISK 3,475. The rental price may nevertheless be affected by how the rental company charges the cost under the rental agreement.
For vehicles registered in Iceland, payment is determined continuously from an estimate of average mileage. After a new odometer reading is reported, the difference is settled and the next estimate is adjusted. The owner or registered operator records the mileage at least once a year; payment is monthly. (island.is)
With a rental car, note the odometer reading when you collect and return it, and check the final invoice. This makes it easier to distinguish the state fee from fuel, parking, tunnels and rental-company services.
Your own car brought to Iceland: fixed amount or payment by kilometre
For a foreign vehicle temporarily imported into Iceland, the amount depends on the length of stay. For a passenger car up to 3.5 tonnes staying for up to 30 days, a fixed road fee is paid before or on arrival: ISK 13,900 for up to 10 days, ISK 20,850 for 11–20 days and ISK 24,325 for 21 days or more. (island.is)
For a stay of more than 30 consecutive days, a kilometre fee based on the actual distance driven is paid on departure. The fixed amount already paid is taken into account, but the final payment cannot be lower than the rate for a stay of 21 days or more. For a car up to 3.5 tonnes, the rate is ISK 6.95/km. (island.is)
Before travelling, record the odometer reading and follow the Icelandic customs instructions sent by email or SMS to the person who arranged the vehicle transport. In the EuroGoPass information for Iceland, you can check other road and route charges that are not related to the kilometre fee.
What to check with a rental car
The kilometre fee is based on driving, not fuel. The rental company can therefore pass the cost on to the renter transparently under its agreement. Before collecting the car, check:
- whether the agreement mentions Icelandic road tax or a kilometre fee;
- whether it is charged by the odometer, per day or included in the price;
- the odometer reading at collection and return;
- whether the route includes a separately charged tunnel, car park or private road section.
The fee does not replace other charges. Before leaving, plan your route with EuroGoPass and review the charges for your chosen route.
Summary: what to do before travelling to Iceland
With a rental car, check the agreement to see how the kilometre fee is charged. If you bring your own foreign-registered car and stay for up to 30 days, you pay a fixed amount based on the length of your visit; for a longer stay, the charge is calculated by kilometres driven. Keep track of the odometer, length of stay and separate charges.
Frequently Asked Questions
Is Iceland’s kilometre fee a vignette? No. It is a charge based on the distance recorded on the odometer.
Do electric cars pay it too? Yes. From 1 January 2026, the system applies to vehicles regardless of their power source.
Do I need to deal with it when renting a car? Yes, check how it is charged in the rental agreement. The rental company usually handles the state administration.
What applies when I stay with my own car for less than 30 days? For a vehicle up to 3.5 tonnes, you pay a fixed amount based on the length of stay, not for each kilometre actually driven.