# Bifreiðagjald & kílómetragjald 2026 — Iceland car tax

Source page: https://valem.run/calculators/iceland/car-tax

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.

**Tax year:** 2026

## How it 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

With Registered CO₂ emissions of 150, this model computes Total per year 125,920 ISK.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `co2Standard` | CO₂ test standard on the registration | string |
| `co2` | Registered CO₂ emissions (g/km) | number |
| `weightKg` | Vehicle weight (kg) | number |
| `kmPerYear` | Kilometres driven per year | number |
| `over25Years` | Car older than 25 years at the start of the year | boolean |

## 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](https://www.skatturinn.is/einstaklingar/skattar-og-gjold/bifreidagjald/) (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](https://www.skatturinn.is/einstaklingar/skattar-og-gjold/kilometragjald/) (checked 2026-10-12)

## What this page claims

The Valem engine reproduces this model's formula through 6 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/iceland/car-tax.json
- Compute by URL: https://valem.run/calculators/iceland/car-tax.json
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `iceland/car-tax`)