How Much Does Reykjavík Cost? 2026 Budget Guide | Prices & Tips
Reykjavík is widely considered one of the most expensive capital cities in the world, frequently compared to high-cost hubs like Oslo or Zurich. Travelers visiting for dramatic volcanic landscapes and geothermal wonders should prepare for significant daily expenditures, with solo budgets typically ranging from $138 / 16,998 kr to as high as $1,584 / 194,974 kr per day. The high cost of living is driven by Iceland's remote island location, which necessitates the import of most goods and fuel. While the spectacular nature remains the primary draw, accessing it often involves significant costs for guided tours, gear, or specialized vehicle rentals. By focusing on supermarket meals and prioritizing free natural sites over commercial spas, it is possible to manage expenses, though a "budget" trip here remains higher than in most of continental Europe.
Is Reykjavík expensive to visit?
Reykjavík is an expensive destination where travelers should expect to spend between $138 / 16,998 kr and $1,584 / 194,974 kr per day depending on their choice of accommodation and adventure activities.
On This Page
Daily Budget
How much to budget per person per day in Reykjavík
$138
per person /day
$528
per person /day
$1,584
per person /day
Trip Costs by Duration
Total estimated costs per person, excluding flights
| Trip Costs by Duration | Budget | Mid-Range | Luxury |
|---|---|---|---|
| 3-Day Trip | $414 | $1,583 | $4,750 |
| 5-Day Trip | $691 | $2,639 | $7,918 |
| 7-Day Trip | $966 | $3,695 | $11,085 |
per person — Excludes international flights
Budget Buffer
Recommended contingency for unexpected expenses
It is recommended to maintain a 15% budget buffer to account for the mandatory lodging tax of approximately $6.47 / 797 kr per night and the distance-based road tax for rentals, which adds about $17 / 2,087 kr for every 300km driven.
How Does It Compare?
See how Reykjavík stacks up against other popular destinations
What Things Cost
Real prices for common tourist expenses in Reykjavík
Food & Drink (3)
| Item | Price |
|---|---|
| Meal at an Inexpensive Restaurant Standard for a burger or large soup in a casual cafe. | $28 3,424 kr |
| Large Local Beer (0.5L) Happy hour (usually 16:00–19:00) can reduce this to ~$7.3 / 898 kr. | $13 1,600 kr |
| Cappuccino Expect to pay closer to $6.83 / 840 kr in specialty roasteries like Reykjavik Roasters. | $6.9 849 kr |
Transport (4)
| Item | Price |
|---|---|
| Strætó Capital Area Single Ticket Valid for 75 minutes. Use the Klapp app for easy payment. | $5.12 630 kr |
| Flybus Official Airport Transfer The standard bus transfer. Hotel drop-off costs an additional ~$12 / 1,449 kr. | $35 4,298 kr |
| Taxi Start Price (Day Rate) Day rates apply 08:00–16:00 on weekdays. | $6.74 830 kr |
| Fixed Airport Transfer (Keflavik-Reykjavik) Convenient for groups of 3–4, costing roughly $182 / 22,461 kr total. | $183 22,497 kr |
Accommodation (3)
| Item | Price |
|---|---|
| Dorm bed in a central hostel Prices for dorms in popular spots like Kex or Loft often fluctuate; booking early saves ~$12 / 1,449 kr. | $69 8,499 kr |
| Mid-range hotel room (Double) Includes breakfast in most central locations. Expect to pay ~$341 / 42,024 kr per night. | $341 41,995 kr |
| Luxury hotel suite (The EDITION) High-end luxury experience in the Old Harbour area costing approx. $1,177 / 144,910 kr per night. | $1,178 144,980 kr |
Activities (4)
| Item | Price |
|---|---|
| Hallgrímskirkja Church Tower Tickets The best 360-degree view of the city's colorful rooftops. | $12 1,500 kr |
| Blue Lagoon Comfort Entry (Peak) Prices are dynamic; booking sunset slots or weekends can exceed $141 / 17,389 kr. | $122 14,988 kr |
| Reykjavík City Card (24h) Covers bus travel, thermal pools, and museums like the National Gallery. | $50 6,099 kr |
| Whale Watching (3-Hour Tour) Tours depart daily from the Old Harbour. Winter tours include thermal overalls. | $114 13,988 kr |
Food & Dining
What to eat and what it costs
Dining is a premium expense, where a simple meal at an inexpensive restaurant like a casual cafe costs approximately $28 / 3,424 kr. Alcohol is particularly heavily taxed, with a large local beer (0.5L) averaging $13 / 1,600 kr, though happy hour culture provides a vital window for savings. A standard cappuccino at a specialty shop like Reykjavik Roasters typically costs around $6.9 / 849 kr.
Cheap Eats
Where locals eat — real places, real prices
Bæjarins Beztu Pylsur
$6.09–$12 / 749 kr–1,500 krDowntown/Harbor · Street food
Ask for 'eina með öllu' (one with everything) for the authentic experience for ~$6 / 739 kr.
101 Reykjavik Street Food
$19–$26 / 2,400 kr–3,200 krSkólavörðustígur · Local food
Their fish and chips is one of the best values in the city at ~$21 / 2,608 kr.
Noodle Station
$15–$21 / 1,900 kr–2,600 krLaugavegur · Local chain
One of the few spots where you can get a filling meal for under $18 / 2,174 kr.
Hlemmur Mathöll
$18–$37 / 2,200 kr–4,499 krHlemmur · Food court
Great for groups with different tastes; try the artisan tacos or sourdough pizza.
Brauð & Co
$5.68–$9.75 / 700 kr–1,200 krFrakkastígur · Bakery
The famous cinnamon rolls are a perfect breakfast for ~$6.12 / 754 kr.
Getting Around
Transport costs and the smartest ways to move
Navigating the capital area via the Strætó bus system is efficient, with single tickets priced at $5.12 / 630 kr, but most nature-focused travelers rely on airport transfers or rentals. The Flybus airport transfer costs $35 / 4,298 kr per person, while a fixed private transfer for groups is roughly $183 / 22,497 kr. Taxis are exceptionally pricey, starting at $6.74 / 830 kr during day rates and increasing quickly by distance.
Accommodation Overview
Lodging represents the bulk of a travel budget, with a single dorm bed in central hostels like Kex or Loft costing around $69 / 8,499 kr per night. Mid-range travelers should expect to pay roughly $341 / 41,995 kr for a double hotel room, while high-end luxury suites in the Old Harbour area can reach $1,178 / 144,980 kr per night.
Accommodation Budget in Reykjavík
Budget
Hostels, budget hotels, shared facilities
Mid-Range
3-star hotels, boutique stays, great locations
Luxury
5-star hotels, suites, premium amenities
💡 Prices vary by season. Book 2-3 months ahead for best rates.
Money-Saving Tips
Insider tricks to stretch your budget further
- 1 Drink the tap water for free; it is among the cleanest in the world and buying bottled water is an unnecessary expense.
- 2 Visit the Duty-Free store at Keflavík Airport immediately upon arrival to stock up on alcohol, as prices in the city are significantly higher.
- 3 Eat at local hot dog stands like Bæjarins Beztu Pylsur for a quick meal that is significantly cheaper than a sit-down restaurant.
- 4 Download the 'Appy Hour' app to find bars offering discounted drinks, which can lower a large beer from $13 / 1,600 kr to approximately $7.3 / 898 kr.
- 5 Shop for groceries at budget supermarkets like Bónus or Krónan rather than convenience stores to save on snacks and breakfast items.
- 6 Purchase a 24-hour Reykjavík City Card for $50 / 6,099 kr to get free access to city buses, thermal pools, and various local museums.
- 7 Opt for local public thermal pools like Laugardalslaug instead of the Blue Lagoon to enjoy the geothermal experience for a fraction of the $122 / 14,988 kr entry fee.
- 8 Book accommodation and car rentals at least 4–6 months in advance to avoid the steep price hikes common during the peak summer months.
- 9 Fill up your rental car at self-service gas stations and use loyalty discount tags provided by many rental agencies to save on fuel costs.
- 10 Travel in late September to experience the Northern Lights and pleasant temperatures of 8–10°C (46–50°F) while avoiding peak summer pricing.
Seasonal Pricing
When prices rise and fall throughout the year
Jun, Jul, Aug
+30-50%
Nov, Jan, Feb
-20-35%
May, Sep
Peak summer offers 24-hour daylight but highest prices. Visit in late September for a balance of decent weather (~8–10°C (46–50°F)) and Northern Lights chances.
Events to Watch
- ● Iceland Airwaves (Nov): Hotels +40%
- ● New Year's Eve: Fireworks spikes prices and requires early booking
Free Things to Do
The best experiences that cost absolutely nothing
- 1 Walk the Sculpture and Shore Walk to see the iconic Sun Voyager (Sólfar) sculpture overlooking the bay.
- 2 Explore the architectural interior of Harpa Concert Hall, which is free to enter and offers stunning geometric views.
- 3 Visit the Einar Jónsson Museum Sculpture Garden, which remains free to the public even when the museum is closed.
- 4 Hike up to the Grótta Lighthouse at the edge of the Seltjarnarnes Peninsula for birdwatching and potential Northern Lights sightings.
- 5 Walk through the Öskjuhlíð forest paths surrounding the Perlan building for panoramic views of the city.
- 6 Observe the birdlife at Tjörnin Lake, right in the center of downtown Reykjavík.
- 7 Visit the Reykjavík City Hall to see the massive 3D topographic map of Iceland.
- 8 Browse the Kolaportið Flea Market (open weekends) to soak in the local atmosphere near the Old Harbour.
- 9 Take a dip in the foot-sized geothermal pool, Kvika, located near the Grótta Lighthouse.
- 10 Walk through the colorful streets of the 101 district to see world-class street art and murals.
- 11 Visit the sanctuary of Hallgrímskirkja Church for free (though the tower access costs $12 / 1,500 kr).
- 12 Hike the Reykjadalur Hot Spring River trail near Hveragerði (approx. 45km from the city) for a free natural thermal soak.
Worth the Splurge
Premium experiences that justify the price tag
Inside the Volcano (Thrihnukagigur)
A unique experience descending 120 meters into a dormant magma chamber. It costs ~$421 / 51,878 kr.
Sky Lagoon Ritual (Pure Pass)
The 7-step ritual overlooking the ocean is more intimate than Blue Lagoon. Costs ~$105 / 12,897 kr.
Helicopter Tour: Fire and Ice
Aerial views of volcanic craters and glaciers are unbeatable for ~$771 / 94,916 kr.
Popular Activities
Top-rated tours and experiences in Reykjavík
Day Trip Costs
Popular day trips from Reykjavík and what they cost
Golden Circle (Gullfoss, Geysir, Þingvellir)
$89 / 10,989 kr by bus
Free
$122 / 14,998 kr
South Coast (Skógafoss & Reynisfjara)
$134 / 16,498 kr by bus
Free
$171 / 20,997 kr
Payment & Money
How to pay and what to know about money
Icelandic Króna (ISK)
1 $ ≈ 123 kr
No
Everywhere—Iceland is virtually 100% cashless, including street food and toilets.
Not expected. Service is always included in the bill. Rounds of drinks or great meals don't require an extra € tip.
ATMs are at the airport and downtown, but most travelers never use them. Avoid dynamic currency conversion—always pay in ISK.
Connectivity
eSIM: $53 for 250GB (opens in new tab)
Local SIM: $24 / 2,898 kr for 10GB Starter Pack
WiFi: Excellent—available in every café, hotel, and even some tour buses.
Use Nova's 250GB tourist eSIM for heavy data users or Siminn for the best rural coverage.
Why you can trust this guide
35+ countries • 8 years analyzing travel data
Independent developer and travel data analyst based in Prague. 35+ countries visited across Europe and Asia, 8+ years analyzing flight routes, accommodation prices, and seasonal weather patterns.
- All neighborhoods verified by walking them
- Curated locations based on walkability & safety
- Real-time availability via live partner maps
- Prices based on Booking.com & Numbeo averages
Methodology: This guide combines on-the-ground neighborhood research, current hotel pricing data, and real traveler feedback to provide honest, actionable accommodation recommendations for Reykjavík.
Updated: February 16, 2026
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Where to Stay
Best neighborhoods and hotel recommendations
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Complete Cost Guide
Full budget and cost breakdown