Is Reykjavik expensive? What things really cost in 2026
Short answer
Yes, Reykjavik is one of the most expensive cities in Europe: a budget day costs about ISK 26,000 (roughly €175-180) per person and a mid-range day about ISK 51,000, comparable with Oslo or Zurich. Rooms, restaurant meals, alcohol, tours and car hire with fuel are the big costs; the natural sights themselves (Geysir, Gullfoss, the south-coast waterfalls) are mostly free.
Daily budget: backpacker, mid-range, luxury
| Budget | Mid-range | Comfort | |
|---|---|---|---|
| Bed (per person, sharing) | ISK10,000 | ISK18,000 | ISK40,000 |
| Food & drink | ISK6,000 | ISK12,000 | ISK25,000 |
| Sights & tickets | ISK4,000 | ISK12,000 | ISK25,000 |
| Local transport | ISK6,000 | ISK9,000 | ISK18,000 |
| Per person, per day | ISK26,000 | ISK51,000 | ISK108,000 |
Approximate 2026 prices, two people sharing a room. From our Reykjavik day-cost table.
What things cost
| Item | Typical price* |
|---|---|
| Hot dog (pylsa) from a stand | roughly ISK 700-900 |
| Coffee in a café | roughly ISK 700-900 |
| Public swimming pool (Sundhöll, Vesturbæjarlaug) | about ISK 1,300-1,500 |
| Flybus from Keflavík airport | around ISK 3,500-4,500 |
| Sky Lagoon entry | from about ISK 10,000-12,000 |
| Whale-watching trip (3 hours) | about ISK 12,000-14,000 |
| Rental car per day, summer | from about ISK 10,000-15,000 |
| Mid-range double in 101 Reykjavik | ISK 30,000-45,000 |
* Approximate prices, October 2026. They change with season and exchange rates.
Where the money goes
Accommodation is the biggest cost: even guesthouses outside the 101 centre, often with shared bathrooms, cost ISK 18,000-28,000 a double, and central hotels ISK 30,000-45,000. Food and especially alcohol are expensive in restaurants and bars. The second large item is getting out of the city: tours with pick-up, geothermal lagoons, parking fees and a hire car with expensive fuel. Most landscapes are free to visit.
When it is cheaper
From October to April (except Christmas and New Year), hotel rates and car hire are usually noticeably lower than in June to August, often by a quarter to a third; days are shorter and some roads close in storms.
How to spend less
- Shop at discount supermarkets such as Bónus or Krónan and self-cater for breakfast and lunch.
- Buy alcohol at the airport duty-free on arrival; the state Vínbúðin shops and bars are far pricier.
- Use public swimming pools (about ISK 1,300-1,500) instead of a lagoon on some days.
- Rent a car in a group and drive the Golden Circle and south coast yourself rather than taking tours.
- Drink tap water: it is excellent and free everywhere.
- Travel in September or May for lower prices with reasonable daylight.
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Common questions
How much does a day in Reykjavik cost?
About ISK 26,000 (roughly €175-180) per person on a budget, ISK 51,000 mid-range and about ISK 108,000 for comfort, sharing a double and a hire car.
Why is Iceland so expensive?
High wages, imported goods, high alcohol taxes and strong tourist demand make hotels, food and drink pricey; the landscapes are mostly free.
Do I need cash in Iceland?
Rarely. Cards are accepted almost everywhere, including for small purchases; petrol stations need a card with a PIN.