How Much Does it Cost to Go to Iceland From the US in 2026?

Iceland might be on your bucket list but the biggest concern most people have is how much it costs. Since Iceland is an island and most goods are imported, it’s always been a pricier destination — and inflation hasn’t helped. So just how much does it cost to go to Iceland? Here’s a breakdown of what I spent on my four day trip, plus updated costs for 2026.

How Much Does it Cost to Go to Iceland?

When I started planning my trip to Iceland I knew I wanted to enjoy myself but I also didn’t want to break the bank. And while things cost more than many North American destinations, I personally found it to be comparable with cities like New York, Miami and even London in the UK.

Outside of hostels, hotels generally cost $250 and up for a night. Car rentals cost more because of the liability and the potential for bad weather to cause damage. Of course, you have to factor in fuel costs too.

Food in restaurants costs more but I found the food at the grocery stores and even gas stations to be a good alternative and a way to save a buck or two. Buying food at the grocery store not only saves money but you’ll have snacks on hand when the restaurants are few and far between.

How Much Does a Plane Ticket Cost to Go to Iceland?

I decided to visit Iceland when I was already in upstate New York attending a conference. Tickets from the New York City area are much more affordable than tickets from my home airport of Atlanta. Not to mention the travel time was way less from Newark, NJ (EWR) to Reykjavik (KEF) and that worked with my limited time.

In 2026, ticket prices are a bit more. A quick search on Expedia.com shows plane tickets, midweek for the same time of the year (September) are approximately $850-$1000 USD from Atlanta on multiple airlines. A ticket from JFK in New York City is about $550 USD and flights from Boston are around $450. Clearly, departing from the northeast is best.

Depending on where you live in the United States ticket prices can vary greatly. The best advice is to be flexible with your dates and visit in the off season. Use the price tracking on Expedia or set a low price alert from Google Flights. When I decide to travel to Iceland again, I will plan a layover when I’m in route to Europe or I’ll travel when I’m already in the northeast like I did this time.

Sadly – even though it’s pretty irrelevant at this point – here’s what I spent on my plane ticket to Iceland:

• Round trip to Reykjavik from Newark, $219.98 USD
• Regular window seat, $7.99 USD each way
• Carry on, $49.99 USD each way USD
• Total $335.94 USD

How Much Does a Rental Car Cost in Iceland?

In my opinion, a rental car is the way to go in Iceland. With expensive taxis, no rideshares and limited public transportation around Reykjavik, if you want to really see the island, you need a car. The only time I wouldn’t rent is if I visited in winter and wasn’t sure of the weather.

After I booked my plane ticket, I began to research tours. Even though prices were reasonable, the more I looked, the more it became clear that I would never be able to see what I wanted to see in four days with group tours alone. Renting a car and driving myself was the only way. Best decision ever.

After looking at options, I ended up booking a small four door Fiat through Green Motion. Their office is located a couple of kilometers from the airport and staff will meet you at the airport and take you over in a shuttle van. While you wait to pick up your car, you can enjoy the comfy couches and the free lattes. You can also use DiscoverCars.com to search for vehicles.

If you want to save money on a rental — and just in general — it’s best to plan to visit Iceland in the spring or fall. That’s low season and the weather is milder. That means a four wheel drive vehicle, which is usually costs more, isn’t necessary. In September, I had no issues getting around in my little Fiat in rain and even a bit of sleet.

Auto Insurance

When I picked up my rental car in Iceland, I did end up spending a bit more money on insurance than I had anticipated. Why? Because, I decided to play it safe and purchase the full coverage insurance the agency offered.

Iceland is a very windy country. The insurance on basic insurance policies don’t include damage due to blowing sand and ash. Yes, that’s a thing. Broken headlights, broken windshields, damage to the undercarriage and tire damage aren’t covered either.

Unsure of what exactly my credit card would cover in case of an incident, I added a full-coverage policy that included everything except the doors being blown off by the wind. It was explained to me that no one covers that – ever. Also, not that I was planning on doing anything stupid, but my piece of mind and not having to worry was more important that my wallet.

All in all, I spent a little over a $100 USD a day for the car, including insurance. That’s not cheap, but it’s also not the most I’ve ever paid for a rental either. I paid well over $100 USD a day, for a car in Boston one summer — pre-pandemic — and that didn’t include gas.

Still, renting a vehicle was the best thing I could have done. Having a rental really maximized my four days in Iceland. I saw way more driving myself than I could have seen on tours.

Unfortunately, the price of rental cars has also increased. A quick search for September shows that this same car at Green Motion – with the insurance – would cost about double what I paid. Here’s exactly what I spent.

• Four day rental, $117 USD
• Extra Insurance, $167 USD
• Total $278 USD

Southerner Says: many of the small cars in Iceland have manual transmissions. If you don’t know how to drive a manual make sure your vehicle is an automatic when you book it. There were a couple of people there that most clearly did not know how to drive a manual but that’s all that was available.

Fuel Costs in Iceland

Your rental needs fuel. What does gas cost in Iceland? In the U.S., fuel prices are priced by the gallon. In Iceland, it’s per liter. The first time you see the price in Icelandic Krona (ISK) at a gas station you’ll freak out a little. For reference, there are 3.785 liters in a gallon.

I paid $233.3 ISK per liter for gas. That’s about $2.11 USD a liter. That comes out to approximately $7.50 USD a gallon. As of April 2026, gas per liter is $180–226 ISK depending where you are. That’s approximately $1.44-$1.82 USD a liter or $5.45–$6.90 USD USD a gallon. Gas is actually a bit less now due to some tax restructuring in the country.

In four days I drove 1000 miles and went just about everywhere I wanted to go. I spent approximately $150 USD on gas. By my calculations, I would have spent at least $300 USD just on on basic tours. Use this converter to help plan out gas costs.

What I spent on gas in Iceland:

• Gas $150 USD

How Much are Hotels in Iceland?

There’s pretty much something for every budget in Iceland but it won’t be cheap. I would have loved to have stayed in a Reykjavik hotel or a cozy cabin somewhere, it just wasn’t doable this time since I was traveling alone. When I researched hotels for September — even in the low season — prices were just too much for me as a solo traveler. I decided a hostel would be my best bet.

Since there are quite a lot of affordable hostels in Reykjavik to choose from, I let the location and an all-female room make the decision for me. And B14 Rooms and Apartments checked both boxes.

B14 actually has two Reykjavik locations. I stayed at the east side location, which has both hostel rooms and private rooms — perfect if you’re planning to spend most of your time out of the city road tripping. It’s easy to get downtown from there and free parking is a bonus you’ll appreciate. Their second location is closer to the city centre if you’d rather be in the middle of everything.

I know hostels aren’t for everyone but in a place like Reykjavik, they are a good option. Trust me, you won’t be there much. I was so busy, I was literally only there to sleep. Like most things in Iceland, they aren’t as affordable as in other cities but for solo travelers they are more affordable than a hotel. Reykjavik also has some fancy ones like this.

What I spent on my accommodations in Iceland:

• Room $35.04 USD x 3 nights
• Tax and fees $12.72 USD
• Total $117.84 USD

(Price was for three nights because I had a 9pm flight the last night)

What Does Food Cost in Iceland?

Since most things are imported, food can be expensive in Iceland. To save some money, purchased food and snacks at the popular grocery store Bonus. In the states, I would compare Bonus to Aldi’s. Conveniently, there’s a Bonus located about five kilometers from the airport, on route 41 that goes to Reykjavik.

On my first stop, I bought a sandwich, some water — because I forgot my refillable bottle — and chocolate. The sandwich was a pre-made sandwich that I wouldn’t even consider buying at home. My first meal in Iceland wasn’t glamorous but it was cheap and helped me get on the road quickly. Lunch, my water — which lasted the entire trip — and the chocolate cost me $12 USD.

I did end up stopping again, at a smaller store in a rural area and then another time at a different Bonus to buy meat, cheese, crackers and more of that delicious chocolate. Don’t judge me.

If you opt to dine out, Reykjavik has plenty of restaurant choices but once you leave the city, the options are less. One night I waited too late to find something open and ended up buying a burrito from a to-go place in an N1 gas station. Like all things Icelandic – it was surprisingly good for what it was.

All in all, I was okay with my food plan. It wasn’t the best but I didn’t go to Iceland for the food. And honestly it wasn’t much different from the way I eat on my road trips in the states. The restaurants I went to definitely weren’t gourmet but I don’t eat gourmet when I travel at home either.

One more thing of note is that Iceland is essentially cashless and tipping is not customary — your bill is your bill so you won’t have that added expense. They actually pay their hospitality people a decent wage.

What I spent on food in Iceland:

• Pizza and one beer at Eldofninn in Reykjavik night 1 dinner $33 USD
• Burrito at Serrano at an N1 gas station night 2 dinner $14 USD
• Burger and one beer at Smidjan Brugghus in Vik night 3 dinner $37 USD
• Chicken pasta salad and wine from Mathus (closed) at the airport night 4 dinner $24 USD
• Food from Bonus and other stores $30 USD
• Coffee and breakfasts $30 USD
• Fish-n-chips for lunch on the last day $25 USD
• Total $187 USD

How Much I Spent on Activities in Iceland

When I made the decision to rent a car, I also decided I would forego organized tours. What’s the point in renting a car if you’re going to pay someone else to take you? I already had an idea of the things I wanted to do and I figured I could just fit in what I could and save tours for the next time.

You can read more about what I did in my road tripping from Reykjavik article but briefly here’s the highlights:

I drove the Golden Circle, with multiple stops. I also toured the southern portion of Highway 1 or the “Ring Road” to Jokulsarlon or Glacier Lagoon and visited Diamond Beach. Just that alone is approximately five hours, one way, from Reykjavik.

I spent two different half days exploring the Reykjanes Peninsula and I wandered around Reykjavik. Everything I did was free and the only time I paid for parking was in Reykjavik.

One thing I didn’t have a chance to do — that I really had planned on doing — was hot springs. I went to the Blue Lagoon on the first day but it was super crowded. Then, I thought I would try some other hot springs or come back to the Blue Lagoon and it just never worked out. Next time.

What I spent on activities in Iceland:

• $0

Phone Service

One cost I was pleasantly surprised by was phone service. I used my Verizon international plan and paid a flat daily rate — less than renting a hotspot and no surprises on my bill when I got home. Check with your carrier before you go and see what international options they offer. An eSIM, like Airalo, is another good option — you can download it before you leave home and it works the minute you land.

Calculating the Cost for a Trip to Iceland

So, how much does it cost to go to Iceland? For one person I spent just over $1000 USD for four days. I realize that’s kind of expensive at $250 a day.

However, keep in mind, I was alone. If I’d had someone with me, then we could’ve split the car expenses and that would have saved a lot of money. The same goes for accommodations. I could have upgraded to a hotel or Airbnb and have probably spent about the same if I was sharing with someone.

Here’s the final breakdown of how much money I spent in Iceland:

• $336 USD ticket to Icleand
• $435 USD car rental and insurance
• $118 USD accomodations for three nights
• $187 USD food
• $0 tours
• Total $1076

Ready to Start Planning Your Iceland Trip?

Unfortunately, due to inflation, the cost of traveling to Iceland is definitely more 2026 since airfare, rentals have gone up. However, I still believe you get your money’s worth.

If you consider the destination and exactly what you are investing, I don’t know of another country, for that cost, where you can experience the unique things Iceland has to offer. It’s a wonderful place and worth every penny in my opinion. And yes, I would do it all over again tomorrow.

If you’re ready to make it happen for you, I’d love to help plan it. Fill out this form and I’ll be in touch.

And if you’re still researching, here are a few good places to start:

• The Golden Circle Itinerary: What to See in One Day
• Don’t Miss These 15 Things to Do in Reykjavik
• Four Days in Iceland: Road Tripping From Reykjavik

Takk Fyrir — and Góða Ferð.

See you on the road!