From January 1, 2026, Iceland will implement a road tax; either a daily fee of ISK 1,390 will apply for each day of the rental, or a per-kilometer rate of ISK 6.95 per kilometer will be charged.

This charge will apply to all vehicles in 2026, regardless of energy source.

The kilometer charge is a fee paid for each kilometer driven and replaces fuel and petrol taxes, which will then be discontinued.

Please refer to your contract for further details.