Is Iceland expensive? What things really cost in 2026
Short answer
Yes: Iceland is among the most expensive countries in Europe, with restaurant meals, alcohol, car hire and accommodation all well above Western European levels. A budget traveller needs about 26,000 ISK a day, mid-range about 52,000 ISK and comfort about 102,000 ISK per person, assuming a shared rental car. Rooms, the car and eating out take most of the money, while most natural sights are free.
Daily budget: backpacker, mid-range, luxury
| Budget | Mid-range | Comfort | |
|---|---|---|---|
| Bed (per person, sharing) | ISK10,000 | ISK20,000 | ISK45,000 |
| Food & drink | ISK7,000 | ISK14,000 | ISK25,000 |
| Sights & tickets | ISK3,000 | ISK9,000 | ISK18,000 |
| Local transport | ISK6,000 | ISK9,000 | ISK14,000 |
| Per person, per day | ISK26,000 | ISK52,000 | ISK102,000 |
Approximate 2026 prices, two people sharing a room. From our Iceland day-cost table.
What things cost
| Item | Typical price* |
|---|---|
| Hot dog at Baejarins Beztu Pylsur | about 800 ISK |
| Main course in a restaurant | about 4,000–7,000 ISK |
| Beer in a bar | 1,500–2,000 ISK |
| Public swimming pool (Sundhollin) | about 1,300 ISK |
| Flybus from Keflavik to Reykjavik | about 4,000 ISK |
| Small rental car, per day in summer | about 10,000–20,000 ISK |
| Fuel, per litre | about 300–330 ISK |
| Blue Lagoon entry | from about 11,000 ISK |
* Approximate prices, October 2026. They change with season and exchange rates.
Where the money goes
Accommodation is the biggest cost, from 18,000–30,000 ISK for guesthouses with shared bathrooms to 70,000–200,000 ISK at luxury hotels, with a small accommodation tax per room-night. A rental car with fuel is almost essential outside Reykjavik and adds a lot, especially for solo travellers. Guided activities such as glacier hikes (about 15,000–20,000 ISK), Silfra snorkelling and lagoons are the big extras. Restaurant food and alcohol are heavily priced.
When it is cheaper
Late autumn to early spring, outside Christmas and New Year, has lower car and room prices, sometimes by a third or more compared with July and August. Shoulder months such as May and September are a good middle ground.
How to spend less
- Drink tap water: it is excellent and free everywhere.
- Buy lunch and picnic supplies at Bonus and Kronan supermarkets.
- Choose guesthouses or cabins with kitchens and cook some dinners.
- Buy alcohol at the airport duty-free shop on arrival.
- Use public swimming pools instead of expensive lagoons; they cost a fraction of the price.
- Share a rental car and take gravel protection insurance to avoid costly windscreen claims.
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Common questions
Is Iceland expensive?
Yes, among the most expensive countries in Europe: about 26,000 ISK a day on a budget and 52,000 ISK mid-range per person.
How much does a car cost in Iceland?
About 10,000–20,000 ISK a day for a small car in summer, plus fuel at about 300–330 ISK a litre.
How much is the Blue Lagoon?
From about 11,000 ISK with timed entry; public pools cost about 1,300 ISK.