Iceland has a reputation for being expensive — and that reputation is largely deserved. But with smart planning, you can have a phenomenal trip without spending a fortune. Here’s everything you need to know about money in Iceland.
Iceland's currency is the Icelandic Króna (ISK). Credit cards are accepted almost everywhere in Iceland — even at remote petrol stations and small guesthouses. You rarely need cash, but it's handy to have a small amount for occasional market stalls or tips.
Budget accommodation (hostel dorm): 4,000–8,000 ISK/night. Mid-range guesthouse: 20,000–35,000 ISK/night. Hotel: 35,000–80,000+ ISK/night. Meal at a café: 2,500–4,500 ISK. Restaurant dinner: 5,000–12,000 ISK. Petrol: approximately 300 ISK/litre.
Guided tours are a significant expense in Iceland. Ice cave tours: 15,000–25,000 ISK per person. Glacier hiking: 10,000–18,000 ISK. Whale watching: 11,000–17,000 ISK. Snowmobiling: 20,000–30,000 ISK. Northern Lights tours: 8,000–15,000 ISK. Book in advance to secure the best rates.
Tipping is NOT expected or required in Iceland. Service charges are included in all prices by law. That said, if you receive exceptional service — particularly from a tour guide who went above and beyond — a small tip (1,000–2,000 ISK) is always appreciated but never obligatory.
Cook some of your own meals — supermarkets (Bónus is cheapest) sell affordable food. Visit free natural sites — many of Iceland's best sights cost nothing. Book accommodation and tours well in advance for better rates. Travel in shoulder season (May or September) for lower prices.
The biggest expenses in Iceland are accommodation and guided activities. Save money by choosing guesthouses over hotels, cooking breakfast and lunch yourself, and prioritising 2–3 paid activities over trying to do everything. Quality over quantity is the Iceland mantra.
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