Reykjavík · Iceland

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.

Currency: Icelandic Króna (ISK) (1 $ ≈ 123 kr)
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Daily Budget

How much to budget per person per day in Reykjavík

Budget

$138

per person /day

Mid-Range

$528

per person /day

Luxury

$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

Oslo Reykjavík is slightly more expensive than Oslo; while both have high food and alcohol costs, Iceland's remote nature makes transport and guided tours significantly pricier.
London Reykjavík is considerably more expensive than London, particularly regarding budget dining and basic transport, with a daily solo budget starting around $138 / 16,998 kr compared to London's $100–$112 / 12,317 kr–13,766 kr.

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 kr

Downtown/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 kr

Skólavörðustígur · 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 kr

Laugavegur · 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 kr

Hlemmur · 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 kr

Frakkastígur · Bakery

The famous cinnamon rolls are a perfect breakfast for ~$6.12 / 754 kr.

Rainbow painted street with colorful road markings in downtown city center, Reykjavík, Iceland

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.

Strætó Capital Area Single Ticket $5.12 630 kr
Flybus Official Airport Transfer $35 4,298 kr
Taxi Start Price (Day Rate) $6.74 830 kr
Fixed Airport Transfer (Keflavik-Reykjavik) $183 22,497 kr

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.

Dorm bed in a central hostel $69 8,499 kr
Mid-range hotel room (Double) $341 41,995 kr
Luxury hotel suite (The EDITION) $1,178 144,980 kr

Accommodation Budget in Reykjavík

Budget

$59 /night
Typical Range: $53 – $65

Hostels, budget hotels, shared facilities

Most Popular

Mid-Range

$135 /night
Typical Range: $118 – $153

3-star hotels, boutique stays, great locations

Luxury

$266 /night
Typical Range: $224 – $306

5-star hotels, suites, premium amenities

💡 Prices vary by season. Book 2-3 months ahead for best rates.

Where to Stay

See hotels, apartments & rentals around Reykjavík – live prices from Booking.com, Expedia, Vrbo and more

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.

Hidden Costs

Surprise expenses that catch tourists off guard

Hidden Costs
Item Amount
Lodging Tax (Hotel/Guesthouse) Official tax per night per accommodation unit. It is ~$6.47 / 797 kr. $6.5 / 800 kr/night
Distance-based Road Tax Applies to rental cars. A 300km drive adds ~$17 / 2,087 kr to your trip. $0.06 / 7 kr/km
Parking in Central Zone P1 P1 is the most expensive central zone. Parking is free on Sundays. $4.87 / 600 kr/hour
Public Toilet Fee Found at major tourist sites like Hallgrímskirkja or Thingvellir. Card only. $1.62 / 200 kr/use

Common Scams & Ripoffs

Watch out for these tourist traps

  • Bottled Water Ripoff: Retailers often sell bottled water to tourists for $3.53–$5.89 / 435 kr–725 kr, despite the fact that the free tap water is identical or higher in quality.
  • Overpriced 'Northern Lights' Tours: Some operators will take tours out even when cloud cover is 100% and chances are zero; always check the aurora forecast and the company's re-run policy before booking.
  • P1 Parking Zones: Avoid parking in P1 zones in the city center without checking the time; while Sunday is free, the high hourly rates are strictly enforced via cameras and can result in heavy fines.
  • Standard Taxi Transfers: Taking a taxi from the airport without a fixed price can result in a bill exceeding $188 / 23,186 kr, whereas the Flybus is a fraction of the cost at $35 / 4,298 kr.

Seasonal Pricing

When prices rise and fall throughout the year

Peak Season

Jun, Jul, Aug

+30-50%

Cheapest

Nov, Jan, Feb

-20-35%

Best Value

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
The Blue Lagoon geothermal spa with milky blue water and steam rising, iconic Iceland attraction near Reykjavík, Iceland

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.

$422 51,992 kr

Sky Lagoon Ritual (Pure Pass)

The 7-step ritual overlooking the ocean is more intimate than Blue Lagoon. Costs ~$105 / 12,897 kr.

$105 12,898 kr

Helicopter Tour: Fire and Ice

Aerial views of volcanic craters and glaciers are unbeatable for ~$771 / 94,916 kr.

$772 94,987 kr

Popular Activities

Top-rated tours and experiences in Reykjavík

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Day Trip Costs

Popular day trips from Reykjavík and what they cost

Golden Circle (Gullfoss, Geysir, Þingvellir)

Getting Around

$89 / 10,989 kr by bus

Entry

Free

Total Cost

$122 / 14,998 kr

South Coast (Skógafoss & Reynisfjara)

Getting Around

$134 / 16,498 kr by bus

Entry

Free

Total Cost

$171 / 20,997 kr

Payment & Money

How to pay and what to know about money

Currency

Icelandic Króna (ISK)

1 $ ≈ 123 kr

Cash Needed

No

Card Acceptance

Everywhere—Iceland is virtually 100% cashless, including street food and toilets.

Tipping

Not expected. Service is always included in the bill. Rounds of drinks or great meals don't require an extra € tip.

ATM Tips

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.

Strokkur geyser erupting with powerful water column shooting into air in Golden Circle, near Reykjavík, Iceland

Why you can trust this guide

Headshot of Jan Křenek, founder of GoTripzi
Jan Křenek

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.

Methodology:
  • 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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Frequently Asked Questions

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.
How much does Reykjavík cost per day?
A trip to Reykjavík costs $138 / 16,990 kr per day on a budget, $528 / 65,006 kr for mid-range, and $1,584 / 195,019 kr for luxury. These include accommodation, food, transport, and activities per person.
How much does a trip to Reykjavík cost?
A 7-day trip to Reykjavík costs approximately $966 / 118,932 kr (budget), $3,695 / 454,921 kr (mid-range), or $11,085 / 1,364,764 kr (luxury) per person, excluding flights.
What is the cheapest month to visit Reykjavík?
The cheapest months to visit Reykjavík are November, January, February, with prices -20-35% lower than peak season. 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.
What are the hidden costs in Reykjavík?
Common hidden costs in Reykjavík include Lodging Tax (Hotel/Guesthouse), Distance-based Road Tax ($0.06 / 7 kr/km), Parking in Central Zone P1 ($4.87 / 600 kr/hour). 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 can I save money in Reykjavík?
Top tips for saving money in Reykjavík: Drink the tap water for free; it is among the cleanest in the world and buying bottled water is an unnecessary expense. Visit the Duty-Free store at Keflavík Airport immediately upon arrival to stock up on alcohol, as prices in the city are significantly higher. Eat at local hot dog stands like Bæjarins Beztu Pylsur for a quick meal that is significantly cheaper than a sit-down restaurant.