What Changed In 2026?

Iceland used to fund many road costs through fuel taxes, tied to petrol and diesel. As cars become more fuel-efficient, that system brings in less money even when road use stays high.

In 2026, Iceland shifts to a per-kilometer charge. Road use is measured by kilometers driven, not by fuel burned.

What The Road Tax Is In Plain Words

The 2026 road tax is a “pay for what you use” fee. For passenger cars and vehicles under 3.5 tons, the base rate is 6.95 ISK per kilometer. Heavier vehicles pay more per kilometer because they sit in higher weight groups.

Most tourists rent vehicles in the lightest group. Small cars, crossovers, and many standard SUVs usually sit under 3.5 tons. Some vans and heavy campers can fall into a higher group, so the vehicle choice matters for long trips.

How Tourists Pay When Renting A Car

Tourists do not report mileage to the government. The rental company handles the official side and collects the fee through the rental agreement.

Two billing styles show up most. Some rental companies bill per kilometer and settle it at return using odometer readings. Others charge a daily road-tax fee based on expected average driving, so the cost is known upfront.

MyCar uses a fixed daily road-tax fee of 1,390 ISK. This daily amount is based on government calculations of average kilometers driven per day. In most cases, MyCar charges this fee when the car is booked. If a reservation was made before the new law was passed, the road tax is charged at pick-up instead.

Before leaving the lot, get two clear answers. Is the road tax charged per day or per kilometer? When is it settled, at return, at pick-up, or at booking? Those answers turn a surprise fee into a planned number.

A Fast Estimate Before The First Drive

For rentals that use per-kilometer billing, the math is easy. Planned kilometers × 6.95 ISK equals the rough road tax for the trip.

A 1,000 km trip is about 6,950 ISK. Add a buffer if the plan includes lots of side roads, because extra stops add distance fast.

If your rental uses a daily road-tax model, multiply the number of rental days by the daily fee to estimate the total.

Why The Final Bill Can Be Higher Than The Plan

Detours are the big one. The road tax does not care why the distance happened, only that it happened.

Weather is the other common cause. A safer route can be longer, and closures can force backtracking. That pushes the odometer up, and the road tax follows.

Simple Ways To Keep The Cost Predictable

Start with the route plan. Group sights by region so each day moves forward instead of looping back. This keeps the kilometer count closer to the plan and leaves more time for stops.

Then choose the right car for the roads. For towns and the main paved routes, a compact car can be the best choice. MyCar’s Toyota Aygo is built for easy city driving and simple parking, which fits lighter plans.

If the plan includes highlands or F-roads, a true 4x4 matters. F-roads have signs at the start, and driving the wrong vehicle can invalidate insurance and force a long retreat. MyCar’s Toyota Land Cruiser Mountain is a 4WD option listed as allowed on F-roads, so it suits that route.

Follow the basics, because fines ruin trips fast. Drive on the right and use dipped headlights at all times. Wear seatbelts in front and back, and follow typical speed limits: 50 km/h in cities, 80 km/h on gravel, and 90 km/h on paved roads.

Do Not Confuse Road Tax With Other Costs

Road tax is a distance charge for road use. Parking fees and parking fines are separate. Read signs and pay on time, so a stop does not become a bill.

Off-road driving is forbidden in Iceland. If there is no marked track or route, driving is not allowed. It can bring heavy fines and it damages a landscape that takes years to heal.

Why MyCar Makes The 2026 Fee Easier

New rules feel simple when the rental company explains them clearly and answers fast. MyCar promotes 24-hour customer service, and the website shows strong customer ratings that support trust.

MyCar keeps road-tax costs predictable by using a fixed daily fee of 1,390 ISK, based on government average-distance calculations. This amount is usually charged at booking, so most travelers know their road-tax cost before arriving. That approach reduces end-of-trip surprises and keeps budgeting cleaner.

For a 2026 road trip, keep it simple. Book a car that matches the route and confirm how the road tax is billed. When quick support matters, MyCar is set up to help, so the trip stays smooth.

FAQs

Does The 2026 Road Tax Apply To All Rental Cars?

Yes, the 2026 system applies regardless of energy source. Petrol, diesel, hybrid, and electric vehicles are covered. The exact rate depends on the vehicle weight category.

Will Tourists Pay The Road Tax Directly To The Government?

No, the rental company handles the official reporting and payment. Tourists pay through the rental agreement instead. The invoice method depends on whether the company uses per-kilometer billing or a daily fee.

Is The Price Always 6.95 ISK Per Kilometer?

Not always. 6.95 ISK per kilometer is the base rate for passenger cars and vehicles under 3.5 tons. Heavier groups pay more. Some companies, such as MyCar, use a fixed daily road-tax fee instead of per-kilometer billing.

What Should Be Checked Before Driving Away?

The billing method should be clear before the keys are handed over. Confirm if it is per kilometer or per day, and confirm when it is settled. Then focus on safe driving and a smart route, and let the scenery do the rest.