Driving in Iceland: Parking Fees and Road Tolls [UPDATED 2023]

The vast majority of destinations in Iceland offer free parking, and you can drive without worrying about paying any parking fees or road tolls. However, there are some places where the fee is mandatory, and sometimes travelers forget to look around to see if they parked in a paid parking spot. Generally, you can expect to pay in such places as national parks (Skaftafell or Thingvellir), downtown Reykjavik, and some most popular destinations, such as the Geldingardalir (Fagradalsfjall) volcano and Seljandarfoss waterfall. As for the road tolls, there is only one tunnel in the North that collects parking fees.  

Parking in Reykjavik 

In downtown Reykjavik, there are four parking zones – P1 (red), P2 (blue), P3 (green), and P4 (yellow). Parking is free in the evenings and on Sundays. 

The easiest way to pay for parking is through the Parka app (Download: Google Play | App Store)or website parka.is 

On top of on-street parking, you will also find a few parking garages, all connected to the Parka app (Essential apps for traveling in Iceland).

Parking in Akureyri

The city center is divided into two main parking zones, P1 and P2. Whichever zone you decide to park in, our charging hours are the same from Monday to Friday between 10:00 – 16:00. Want to learn more about our parking areas and pay zones? Here’s a helpful overview.

In both parking zones P1 and P2, you’ll find specifically marked areas along the streets. Known as ‘Temporary parking zones’, these areas have a maximum parking time of 2 hours. They are easily identifiable by their distinctive street signs displaying maximum parking times. You can spot them on the city map, marked by black dotted lines.

Looking to pay for your parking? For parking zone P1, each hour will set you back by ISK 200, while it’s just ISK 100 per hour for zone P2. The easiest way to pay is with your mobile phone – EasyPark (www.easypark.is) or Parka (www.parka.is). There are also a few payment stations in the city center.

Parking at tourist destinations

As I mentioned, most parking next to tourist destinations is free. However, we strongly advise you to always look around for any signs indicating any fees. As Iceland builds more infrastructure and service houses, sometimes the landowners choose to collect fees for maintenance. You can pay with bank cards, or through a special website. For example, places like Fagradalsfjall volcano, Skaftafell, Reykjanes lighthouse uses the Parka app, but there are also payment booths in the parking lots.

Some places still run on the honor system, and you will find boxes for cash to pay for facilities on site. It is probably the only place you won’t be able to pay with your card, so it is good to have some cash or coins. 

The Vaðlaheiði tunnel

The Vadlaheidi Tunnel, located near Akureyri in North Iceland, is a 7.5 km (4.7 miles) long tunnel on the Ring Road. It goes through the Vikurskard Mountain Passage, which is dangerous for driving in bad weather. The payment system for the only road toll often confuses people. There are no booths where you will be charged; you can only pay online at the tunnel.is You have 24 hours to pay the fee. If the weather is good, you can avoid the fee and take the mountain road. But make sure the road is passable (check road.is for conditions).  

What happens if I don’t pay 

If you fail to pay, you risk getting a fine on top of a missing parking ticket. The authorities will contact you or the rental company, and you will be charged on your credit card. So, if you notice some charge after your trip, it is most likely a parking fee. You are always welcome to inquire via email to confirm.  

If you find a parking ticket on your car, you can pay it at the nearest bank or bring it with you to your rental company and they will help you sort it out.