During your road trip, you will need to pay certain mandatory local taxes:
A mandatory tourist tax of €2.50 per person per night applies (i.e. €17.50 per person in total for 7 nights). This environmental tax is imposed by the Icelandic authorities.
- New Road Tax (starting January 2026)
As of January 1, 2026, Iceland will introduce a new road tax for all vehicles. The estimated amount is around €0.05 per kilometre driven, which comes to approximately €10 per day. Final rates will be confirmed by the end of 2025.
Important: This new tax will be offset by a reduction in fuel taxes, so your total travel cost is expected to remain roughly the same.