Iceland car tax calculator (bifreiðagjald + kílómetragjald)
Iceland car tax calculator (bifreiðagjald + kílómetragjald)Keeping a car in Iceland costs bifreiðagjald — 21,260 kr per half-year, plus a charge per gram of CO₂ above the threshold — and, from 2026, kílómetragjald of 6.95 kr per kilometre on every car up to 3.5 tonnes, whatever its fuel.
Worked example · Total per year
With Registered CO₂ emissions of 150, this model computes Total per year 125,920 ISK. See the full working.
✓ Verified against 6 self-test cases Updated for 2026 · sources checked 2026-10-12
How bifreiðagjald in Iceland is calculated
**Bifreiðagjald** is charged twice a year. A car of up to 3,500 kg pays a **21,260 kr** base fee per period, plus **154 kr per gram of CO₂** above 204 g/km on a WLTP registration (or 188 kr per gram above 168 g/km on an older NEDC one). A 250 g/km WLTP car pays 28,344 kr a period, 56,688 kr a year. Heavier vehicles are charged by weight instead, and cars older than 25 years are exempt.
**Kílómetragjald is new for 2026.** Since 1 January 2026 every vehicle pays a distance charge, **6.95 kr per kilometre** for cars and jeeps up to 3.5 tonnes, whatever the fuel. For electric cars, which pay only the base vehicle fee, it is now the bigger number: 15,000 km a year is 104,250 kr.
The charge is billed monthly on an estimate built from your odometer readings, recorded at least once a year on Ísland.is or at an inspection. Fail to record for more than a year and the estimate rises to 60 km a day with a 20,000 kr late-registration fee. Estimate, not tax advice.
Worked example
ShowHide the full working: 5 inputs, 4 computed steps
| Inputs | |
|---|---|
| CO₂ test standard on the registration | WLTP (most cars registered since 2018–2020) |
| Registered CO₂ emissions (g/km) | 150 |
| Vehicle weight (kg) | 1,600 |
| Kilometres driven per year | 12,000 |
| Car older than 25 years at the start of the year | no |
| Computed by the engine | |
| Bifreiðagjald per half-year period ✓ pinned | 21,260 ISK |
| Bifreiðagjald per year (two periods) ✓ pinned | 42,520 ISK |
| Kílómetragjald ✓ pinned | 83,400 ISK |
| Total per year ✓ pinned | 125,920 ISK |
Every computed row comes from the engine, run on the inputs above. Rows marked ✓ pinned are also fixed by a published self-test, so a change to the model that moved them would fail its own tests.
Frequently asked questions
How much is bifreiðagjald in 2026?
21,260 kr per half-year period for a vehicle up to 3,500 kg, plus 154 kr per gram of CO₂ above 204 g/km (WLTP) or 188 kr per gram above 168 g/km (NEDC). It is charged twice a year.
What is kílómetragjald?
A distance charge introduced on 1 January 2026 for every vehicle, whatever its fuel: 6.95 kr per kilometre for cars and jeeps up to 3.5 tonnes, rising with weight for heavier vehicles.
Do electric cars pay car tax in Iceland?
Yes. They pay the bifreiðagjald base fee and, from 2026, the kilometre charge like every other vehicle.
Are old cars exempt?
Cars older than 25 years at the start of the year are exempt from bifreiðagjald, but not from the kilometre charge.
Sources
- Skatturinn — Bifreiðagjald: base fee per period, the CO₂ thresholds and per-gram amounts (WLTP / NEDC), the rule for vehicles over 3,500 kg and the 25-year exemption · checked 2026-10-12
- Skatturinn — Kílómetragjald: 6.95 kr per km for cars and jeeps up to 3.5 tonnes from 1 January 2026, whatever the fuel · checked 2026-10-12
Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 6 self-test cases; the sources support that the formula matches the rules.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 6 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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