Road Tax Information

Since 1 January 2026, the Icelandic government charges a road tax (kílómetragjald) on all vehicles driven in Iceland, regardless of who owns them. The road tax replaces the old fuel taxes and funds the maintenance and development of Icelandic roads.

How much is it?

  • The road tax is calculated from the exact number of kilometers driven.
  • The government rate is 6.95 ISK per km.
  • SIXT charges it in euros at EUR 0.06 per km, which includes an administration fee for processing and reporting the information to the authorities.

Example: If you drive 1,000 km, the charge is EUR 60.

Why does SIXT charge it?

As the user of the vehicle, the renter is legally responsible for the road tax. This is a government tax, not a SIXT fee – SIXT only collects it on behalf of the Icelandic authorities and transfers it to them in full.

When is it charged?

The total distance can only be confirmed when the vehicle is returned, so the road tax is not shown on your initial rental agreement. It is charged automatically to the card used for the rental after the vehicle is returned, usually within 72 hours.

Official information: vegirokkarallra.is/en

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