Iceland Toll Roads: What Drivers Need to Know in 2026

There is no better way to explore Iceland than by road-tripping around the country. In a country with fairy-tale-like settings, it’s understandable for those planning on visiting the island soon to wonder if any trolls may be collecting tolls along the way. If you’re one of these wondering about any potential Iceland toll roads, this article is for you.

We tell you everything you can expect from potential (and often unexpected) fees along the way, which includes tolls, parking, and “strange” access fees. So, without further ado, here’s what you can expect so you can plan and prep accordingly.

Are There Toll Roads in Iceland?

Are there toll roads in Iceland? Yes and no. Throughout your travels, you will find that most roads are free to use here in Iceland, unless you’re planning on taking a little tour of the north and going through the Vadlaheidargöng Tunnel.

Luckily, paying the toll is simple and fast and can, quite literally, be done from anywhere. Ultimately, toll roads in Iceland won’t be your biggest problem when it comes to sudden fees and charges along the way.

Iceland Tolls at a Glance

The Vadlaheidargöng Tunnel: (Technically) Iceland’s Only Toll Road

Since Vadlaheidargöng is the only toll to look out for, here’s what you need to know:

Location and Purpose

The Vaðlaheiðargöng Tunnel sits on our popular Ring Road route (aka Route 1), just east of Akureyri (the so-called capital city of the north). The tunnel is roughly 7.5 kilometers (4.7 miles) and runs beneath the Vikurskard Mountain. The tunnel serves multiple purposes:

1. It’s a massive shortcut (which works well for those with limited time on the island or those traveling for other reasons than pleasure).
2. The road this tunnel sidesteps is a steep and narrow mountain road. While this road is absolutely breathtaking, given you have enough time to appreciate it and the right vehicle to take it on, it’s pretty much off-limits during the colder months of the year (it is in our harsher north, after all). 

So, in short, if you’re very busy or in a hurry, or you’re visiting between October and April, the Vaðlaheiðargöng Tunnel is probably the best route to go (literally!)

Updated 2026 Tunnel Toll Prices by Vehicle Type

If you read a travel blog or website content that was created before 2025, you’ll see that 1500 ISK ($12.25/€11.00) was pretty much the magic number for a number of years. Unfortunately, there’s been an increase in the Vaðlaheiðargöng Tunnel toll in early 2025. So, below are the new updated prices as of the time of writing:

 Prices can of course change. Check the official payment page for the latest rates.

How and When to Pay the Tunnel Fee

There are essentially two main ways of paying the Vaðlaheiðargöng toll (unless your rental agent has alternative processes in place):

• Via the Vaðlaheiðargöng mobile app

While you do get up to 24 hours after passing through the tunnel to pay the toll, we highly recommend paying beforehand if you’d like the ultimate peace of mind (rather get the admin out of the way, so you can focus on the journey). Also, if you’re thinking of doing a “runner,” we’d reeeeaaaallly advise you to rethink that strategy.

The tunnel is fitted with smart cameras that scan the license plate number of each vehicle that passes through. And the consequences of not paying? Well, you’re looking at a few scenarios. You will either get whacked with additional penalty fees from your rental agent when you return your rental.

Or you’ll start getting very threatening emails from the Icelandic authorities and get hit with a fine. Also, keep in mind that the country’s doors will shut quicker than an open window mid-winter if you become known as someone not upholding our rules and regulations.

Can You Avoid the Vaðlaheiðargöng Tunnel?

As we already mentioned, the tunnel serves as a shortcut, meaning that you can use the alternative route to avoid paying the toll. However, as we also mentioned, this route can either be closed due to bad weather conditions during the colder months of the year, or you’ll need nerves of steel to traverse it. Just for the peace of mind alone during the colder months, the $15 to $20 toll is an absolute steal.

What Happened to the Hvalfjördur Tunnel Toll?

The Hvalfjördur Tunnel is another famous tunnel here in Iceland. It’s 5.7 kilometers (3.5 miles) long and runs underneath the Hvalfjördur fjord, dropping to 163 meters (0.1 miles) below sea level! The tunnel also sits on Route 1 and serves as a shortcut between the capital city of Reykjavik and the western and northern parts of the country.

But these days, the Hvalfjördur Tunnel can also help you sift through blogs and travel companies. That’s because the Hvalfjördur Tunnel also used to charge a toll fee. But in Iceland, our tolls are not to make some kind of profit, but simply to cover construction fees.

So, after all construction costs for the tunnel were recouped, the toll fee fell away in 2018. Yet, many blogs and travel companies will still report on the Hvalfjördur Tunnel toll, highlighting the importance of authentic insider information.

Rental Car Tolls in Iceland: Who Pays and How to Avoid Extra Fees

Getting a surprise charge after your Iceland road trip is never fun. The good news? Toll fees in Iceland are rare and avoiding extra admin fees is simple when you know how the system works. Here's exactly what you need to know about paying tolls with a rental car.

Who Pays the Toll When You Rent a Car?

You are responsible for paying the toll yourself. Many rental companies in Iceland, and we at Cars Iceland, do not automatically bill you for tolls. Instead, they expect you to pay online before or shortly after driving through the Vaðlaheiðargöng tunnel, which is the only major toll road most visitors encounter.

What Happens If You Don't Pay?

If you don't pay, we may pay it on your behalf and later charge you. When this happens, an administrative fee is usually added to cover their processing costs.

How to Avoid Charges

Needless to say, we’ve already gone through the potential consequences of trying to gippo toll payments, and none of them are gone. Save yourself the unnecessary stress and ensure you make payment beforehand (or at least within the 24-hour window provided). Either:

• Online
• Via app

Final Thoughts: Are Toll Costs in Iceland a Concern?

Except for the Vaðlaheiðargöng Tunnel, there are not a lot of tolls to be concerned about when coming to explore the Land of Fire and Ice. However, there are a few unexpected charges that you’ll need to budget for.

Use our article as a guide, and you’ll not only come to the island prepared but also armed with a few hot tips on how to save some money along your road trip. So, what are you waiting for? Leave those toll fee worries behind, rent your car in Iceland, and begin the journey of a lifetime!