Road tax information
Starting 1 January 2026, the Icelandic government has introduced a road tax (kílómetragjald) that applies to all vehicles driven in Iceland, regardless of ownership. This new tax replaces traditional fuel taxes and ensures that everyone using Icelandic roads contributes fairly to their maintenance and development.
The road tax is calculated based on the exact number of kilometers driven by each vehicle. The current rate is ISK 6.95 per kilometer, this will be charged in EUR at the rate 0,06 including administration fee for processing and reporting this information to the authorities.
As the user of the vehicle, the renter is legally responsible for this tax. Therefore, the amount will be added to the customer’s rental once the total distance driven during the rental period is confirmed.
Please note that this is a government tax, NOT A SIXT FEE. SIXT only collects the payment on behalf of the Icelandic authorities and transfers it to them in full, in accordance with national regulations.
Because the total mileage can only be verified when the vehicle is returned, the road tax and administration fee will be charged after the rental, typically within 72 hours of vehicle return. For this reason, the charge does not appear on the initial rental agreement, but will be added automatically once accurate data is available.
For full details and official information about the Icelandic road tax system, please visit:
