The cost of transportation in Iceland can vary greatly depending on the mode of transport, with a monthly transit pass costing around $134 USD and taxi start rates ranging from $8-$10 USD.
Quick Facts
Monthly Transit Pass($134 USD)
Taxi Start Rate($8-$10 USD)
Fuel (per liter)($2.50 USD)
Ride-Hailing Available(Yes — BSR, Hopp, and CabDirect)
CurrencyISK
Getting Around Overview
Iceland has a relatively small population, and as a result, the public transportation system is not as extensive as in other European countries. However, the main transportation modes in Iceland include buses, taxis, and ride-hailing services. The quality of public transit is generally good, with modern buses and a reliable schedule. Most people in Iceland get around by driving their own cars, as the country's geography and lack of public transportation in rural areas make it difficult to rely solely on public transport. The capital city, Reykjavik, has a more comprehensive public transportation system, with buses connecting the city center to the surrounding neighborhoods and suburbs.
The bus system in Iceland is operated by several companies, including Strætó and Reykjavik Excursions, which offer routes throughout the country. The buses are modern and comfortable, with free Wi-Fi and ample legroom. However, the frequency of buses can be limited in rural areas, and it's often necessary to plan ahead and book tickets in advance. Taxis and ride-hailing services are also widely available, although they can be more expensive than public transportation. Ride-hailing apps like BSR, Hopp, and CabDirect are popular in Reykjavik and offer a convenient way to get around the city.
Public Transportation
Transport Type
Single Fare (USD)
Monthly Pass (USD)
Notes
City Bus
$3-$4
$134
Good coverage in Reykjavik, limited in rural areas
Metro / Subway
N/A
N/A
Not available in Iceland
Minibus / Shared Taxi
$10-$15
N/A
Limited routes, mainly in rural areas
Commuter Train
N/A
N/A
Not available in Iceland
Taxi & Ride-Hailing
Service
Base Fare (USD)
Per km (USD)
Typical City Ride (USD)
Notes
Metered Taxi
$8-$10
$2-$3
$15-$25
Available throughout the country
Ride-Hailing App
$5-$7
$1.50-$2.50
$10-$20
BSR, Hopp, and CabDirect available in Reykjavik
Airport Transfer
N/A
N/A
$40-$60
To city center, depending on traffic
Fuel & Driving Costs
Item
Cost (USD)
Notes
Gasoline (per liter)
$2.50
Diesel (per liter)
$2.20
Car Rental (per day)
$60-$100
Economy car, depending on the rental company and season
Parking (per hour, city)
$2-$5
Limited parking spaces in Reykjavik, free parking in rural areas
Toll Roads (typical)
$5-$10
Some roads, like the Ring Road, have tolls
Intercity & Long-Distance
Route Type
Cost Range (USD)
Notes
Intercity Bus (4-5 hrs)
$30-$60
Reykjavik to Akureyri or Hofn
Domestic Flight
$100-$200
Reykjavik to Akureyri or Egilsstadir
Train (long-distance)
N/A
Not available in Iceland
Transport Tips
To save money on transportation, consider purchasing a monthly transit pass or using ride-hailing apps instead of taxis.
Download the Strætó or Reykjavik Excursions app to plan your bus route and track your journey in real-time.
Be aware of the limited public transportation options in rural areas and plan ahead to avoid getting stranded.
Always negotiate the fare with the taxi driver before starting your journey, especially for longer trips.
Consider renting a car for a day or two to explore the countryside, but be mindful of the high fuel costs and limited parking options.
Use the BSR, Hopp, or CabDirect app to book a ride-hailing service, which can be more convenient and affordable than taxis.