Iceland: Tolls
A mixed system — which roads charge, how paying works, and what it costs.
LAST VERIFIED 2026-09-13Iceland has essentially one toll, and you can choose not to pay it. The Vaðlaheiði tunnel shortens the Ring Road east of Akureyri, but the old road over Víkurskarð is still there, still open and free — so the charge buys time and a gentler drive in bad weather rather than access. If you do take the tunnel, the payment window is the thing to remember: from 24 hours before your trip to 24 hours after. There is no barrier and nothing to prompt you. Miss that window in a hire car and the rental company settles it and rebills you with a handling fee on top, which turns a small toll into an irritating one.
Toll system
Most roads are toll-free; a small number of tunnels (e.g. Vaðlaheiðargöng in the north) charge a toll, usually paid online within a set window rather than at a barrier.
How to pay
Almost every Icelandic road is free. The exception is the Vaðlaheiði tunnel, a 7.5 km bore on the Ring Road near Akureyri in the north, and it has no barrier and no booth. You pay online at the tunnel operator's site, and the window is narrow: from 24 hours before your trip to 24 hours after it. Miss it and the charge falls to whoever owns the vehicle — for a hire car, the rental company pays and then bills you, usually with its own service fee added on top.
What it costs
The tunnel charge is a fixed amount per passage by vehicle type, with 11% VAT included in the toll itself and 24% VAT on any collection fee. Leaving it to the rental company is the expensive route, since their handling fee is added to the toll. Separately, Iceland has been rolling out a distance-based kilometre fee for vehicles, including those temporarily imported — check the current rules if you are bringing your own car. Figures are indicative — confirm before travelling.