New Iceland Road Usage Fee 2026 Campervan Rental Costs in Reykjavik

🚐 New Road Usage Fee in Iceland | What Campervan Travelers Must Know (Effective January 1, 2026)

Starting January 1, 2026, Iceland has introduced a major change in how road infrastructure is funded. The Icelandic government has replaced much of the traditional fuel tax with a new kilometre-based road usage fee. This impacts Campervan rentals and all self-drive trips around Iceland — including those picked up in capital city Reykjavik or at Keflavik Airport.

📌 Why Is Iceland Changing the Road Tax System?

In the past, Iceland largely funded road construction and maintenance through fuel taxes built into the price of petrol and diesel. However, as electric vehicles (EVs) and hybrid cars became more common, traditional fuel taxes no longer generated equal contributions from all road users.

To ensure fair and sustainable financing for Iceland’s roads, the government now charges drivers based on distance travelled — no matter the type of vehicle. This makes the system fuel-neutral and fairer for both electric and traditional vehicles.

🛣️ What Is the New Kilometre Fee?

Officially known as the “kílómetragjald” (Kilometer Fee), this road-usage charge applies to all vehicles in Iceland. It’s now the primary method of funding road maintenance, replacing a large portion of the fuel tax.

🚘 Key Details:

• Begins January 1, 2026.

• Applies to all vehicles — petrol, diesel, hybrid, and electric.

• Standard rate: ~6.95 ISK per km (about €0.045–0.05/km) for passenger vehicles up to 3.5 tons.

• For heavier vehicles (like larger Campervans), the rate can be higher based on weight.

📅 What This Means for Campervan Rentals in Iceland

If you’re planning a Campervan trip from Reykjavik — either doing the iconic Ring Road drive or exploring the Golden Circle, South Coast or West Iceland — the kilometre fee will now be part of your daily travel costs.

💡 How Rental Companies Handle the Fee

Rather than charging based strictly on every kilometre driven, many Campervan rental companies now:
✔ offer a fixed daily kilometre fee (e.g., ~ISK 1,390/day ~ €9–€10/day).
✔ Include this fee in your rental agreement upfront.
✔ handle payment and remittance to Icelandic authorities — so you don’t need to calculate kilometres at drop-off.

This means:

• The charge is transparent and predictable.

• You know in advance what your road-usage cost will be.

• There are no surprises at the end of the rental.

Many companies apply a daily rate that reflects the average kilometres most travellers drive, but you can also find options where the fee is based on exact miles driven.

🔍 Example: Campervan Cost Impact

Let’s say you’re renting a Campervan for a 10-day trip and plan to travel an average of 200–250 km per day:

• Daily kilometre fee: ~€10/day

• Total road usage fee for 10 days: ~€100

• Fuel tax savings: Petrol and diesel prices have dropped since the fuel tax was removed, helping balance overall costs.

In many cases, total driving costs remain similar to previous years — because fuel is significantly cheaper at the pump now that the older fuel duty has been removed.

🗺️ Why This Is Good for Campervan Travelers

✔ Fair Contribution

Everyone pays for the actual use of the road, regardless of fuel type — perfect for rentals where fuel consumption is varied.

✔ Predictable Budgeting

Knowing the daily or per-km rate ahead of time means you can plan your Iceland Campervan budget more accurately.

✔ Encourages Smart Driving

Travelers who choose scenic detours or longer routes can easily calculate additional cost — and factor it into their route planning.

📌 Final Takeaway

The new Iceland road usage fee starting January 1, 2026, marks a fairer and more modern approach to funding roads for all vehicles — including those iconic Campervans seen touring from Reykjavik to the Highlands and beyond.

For Campervan rentals:

• Expect a daily kilometre charge (~€10/day).

• Fuel prices are lower, helping balance your trip expenses.

• Road tax costs are transparent and easy to plan.

If you’re planning a self-drive adventure in Iceland in 2026 and beyond, this new system makes it simpler to estimate costs while enjoying all the island’s natural wonders 🚐✨.