Understanding the Kilometer Fee in Iceland: Enterprise Iceland’s Transparent Approach
Iceland’s Kilometer Fee: What Enterprise Renters Need to Know
From 1 January 2026, Iceland uses a kilometer-based road charge. It applies to vehicles driving on Icelandic roads, including rental cars. It is a government fee, not a rental-company extra.
For Enterprise Rent-A-Car customers, the process is simple. The road charge is 1.390 ISK per rental day and is paid at the counter before you start your journey. This means you know the cost before you drive away, making it easier to plan your travel budget.
What the Kilometer Fee Means
The kilometer fee changes how road use is charged in Iceland. It is not simply a new tax added on top of what drivers were already paying. Previously, road-related taxes were largely collected through the price of fuel. Under the new system, the charge is separated from fuel and linked more directly to road use.
The change reflects the way vehicles and driving are evolving. As cars become more fuel-efficient and electric vehicles become more common, fuel consumption is no longer as effective a way to reflect road use. The kilometer-based system means the charge is no longer tied to how much petrol or diesel a vehicle consumes.
The system applies across fuel types, including petrol, diesel, hybrid, and electric vehicles.
For rental car customers, however, there is no need to calculate the charge for every kilometer driven. Enterprise Iceland keeps the process straightforward with a fixed daily charge.
How the Fee Works With Enterprise Iceland
When renting a vehicle from Enterprise Iceland, the kilometer fee is charged at a fixed rate of 1.390 ISK per day.
The fee is collected at the rental counter before you set off, rather than being calculated based on your final odometer reading when you return the vehicle.
This gives you a clear cost from the beginning of your rental. Whether you are planning a short drive around Reykjavík or a longer Icelandic road trip, you do not need to calculate an additional road charge for every kilometer you drive.
Why Enterprise Iceland Uses a Daily Charge
A fixed daily charge makes the kilometer fee easier to understand and budget for.
Instead of checking the odometer at the end of your trip and calculating a charge based on the distance travelled, you know the amount when you collect your rental car.
That means there is no unexpected kilometer-fee calculation at drop-off. The road charge has already been handled before your journey begins.
What Happens at Pick-Up?
When you arrive at the Enterprise Rent-A-Car rental counter, our team will explain the applicable road charge as part of your rental.
For standard rentals covered by the 1.390 ISK daily charge, the calculation is simple:
1.390 ISK × number of rental days = total road charge
The charge is paid at the counter before you drive away.
This makes it easy to include the road charge in your Iceland travel budget from day one.
Does Driving Further Increase the Daily Charge?
With Enterprise Iceland’s fixed daily approach, the road charge is based on the number of rental days rather than calculating your individual charge from the kilometers you drive.
This can make planning longer road trips simpler because you know the applicable daily cost before setting off.
Of course, driving further can still increase other travel costs, particularly fuel or charging costs. Parking fees, tolls, fines and other charges are also separate from the kilometer fee.
Planning Your Iceland Road Trip
Although you do not need to calculate the kilometer fee for every kilometer you plan to drive, good route planning is still important.
Grouping nearby sights together can reduce unnecessary driving and give you more time to enjoy each stop. It is also important to choose a rental vehicle suited to your route and the season.
Towns and main paved roads may be suitable for smaller vehicles, while winter conditions and certain gravel roads can require more careful vehicle selection. Iceland’s Highland F-roads require an appropriate 4x4 vehicle and are subject to seasonal opening and road conditions.
Always check road and weather conditions before travelling, and remember that off-road driving is illegal in Iceland.
Simple, Predictable Pricing
The kilometer-based road charge may be new, but paying it when renting with Enterprise Iceland is straightforward.
The charge is 1.390 ISK per rental day and is collected at the counter before you begin your journey.
There is no need to calculate your own kilometer charge at the end of the trip, helping you know the cost in advance and focus on enjoying the drive.
Book Your Iceland Rental With Confidence
Understanding your costs before you start your trip makes planning an Iceland road trip easier.
With Enterprise Iceland, the kilometer fee is handled at the counter before departure, with a clear daily charge of 1.390 ISK. Choose the right vehicle for your route, plan your journey and enjoy Iceland knowing this part of your rental cost is already taken care of.
FAQs
How Much Is the Kilometer Fee With Enterprise Iceland?
Enterprise Iceland charges 1,390 ISK per rental day for the kilometer-based road charge.
When Do I Pay the Kilometer Fee?
The charge is paid at the Enterprise Iceland counter before you start your rental journey.
Is the Fee Calculated From How Many Kilometers I Drive?
Enterprise Iceland uses a fixed daily charge of 1.390 ISK, rather than calculating your individual charge from the final number of kilometers driven.
Will I Get an Extra Kilometer-Fee Bill When I Return the Car?
The daily road charge is collected at the counter before departure, so there is no need to calculate this charge from your final odometer reading at drop-off.
Are Fuel, Parking and Other Charges Included?
No. Fuel or charging costs, parking fees, tolls, fines and other applicable costs are separate from the kilometer-based road charge.
Does the Kilometer Fee Apply to Electric Vehicles?
The Icelandic road-charging system covers vehicles regardless of fuel type, including electric vehicles.
