Reykjavik accommodation tax 2026: 800 ISK per night plus 11 percent VAT
by RuinMyTrip Editorial · 2d ago
Iceland's lodging tax is 800 ISK per night for hotels and guesthouses in 2026, and accommodation carries the reduced 11 percent VAT rate, per Iceland Revenue and Customs.
A night in a Reykjavik hotel carries a lodging tax of 800 Icelandic kronur in 2026. Iceland Revenue and Customs lists "800 kr./lodging tax unit" for hotels, guesthouses and similar operations holding a licence in the higher categories, and states that the current amounts apply from 1 January 2025.
Campsites and cruise berths
The same table sets 400 kronur per unit for camp sites and parking spots for motorhomes, trailers, pop up campers and caravan sites, and 400 kronur for cruise ships on domestic voyages. The tax is a flat amount per unit sold, so it does not rise with the room price.
VAT sits on top
The tax authority puts the standard rate at 24 percent and states that "the reduced rate of VAT in Iceland is 11% and applies to the sales of following goods and services: Rental of hotel and guestrooms". Cottages, fishing lodges and hostels also fall under 11 percent when the rent period is under one month.
What a stay costs
Five nights in a Reykjavik guesthouse adds 4,000 kronur of lodging tax on top of the room rate and its 11 percent VAT. Whether the government raises the lodging tax again during 2026 is not stated on the tax authority page.
Sources: https://www.skatturinn.is/english/companies/tax-issues/lodging-tax/ and https://www.skatturinn.is/english/companies/value-added-tax/
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