Toll Roads in Iceland – What Car Hire Customers Need to Know 🚘

If you’re planning to explore Iceland with a rental car, you’ll be pleased to know that Iceland has no traditional toll roads. The only exception is the Vaðlaheiði Tunnel (often called Vaðlaheidargöng), located near Akureyri in the north of Iceland.

For most journeys, including the famous Ring Road (Route 1 / Hringvegurinn / Þjóðvegurinn) that circles the island, driving is toll-free. But if your trip takes you through the Vaðlaheiði Tunnel, there are important rules to know – especially when hiring a car.

What is the Vaðlaheiði Tunnel?

• Opened: December 2018

• Location: East of Akureyri, linking Eyjafjörður and Fnjóskadalur

• Length: 7.4 km

• Purpose: Safer alternative to a dangerous stretch of the Ring Road in winter

• Time saving: Cuts 13.6 km off the journey compared to the old Route 1

• Toll introduced: April 2019

The tunnel was built to improve safety and convenience in winter. It’s a huge time-saver, but it does come with a toll.

How Much is the Vaðlaheiði Tunnel Toll?

• 1,500 ISK if paid online within 3 hours

• 2,500 ISK if not paid in time (late payment automatically charged to the registered owner)

💡 Tip for car hire customers: If you don’t pay on time, the fee goes to your rental company, who will add an admin charge – meaning you could pay even more. Always pay directly to avoid extra costs.

How to Pay the Vaðlaheiði Toll

There are no toll booths. Payment is only available online or via the official app.

Options:

• One-off payment: Enter your number plate on veggjald.is/en

• Account: Regular visitors can set up an account for automatic payments

• Rental car payment: Use the “Payment for Rental Cars” option – just input your rental car’s number plate, no registration required

Discounts for Multiple Trips

If you’re staying in the north of Iceland and using the tunnel often, discounted bundles are available:

• 10 trips = 12,500 ISK (1,250 ISK each – 16% saving)

• 40 trips = 36,000 ISK (900 ISK each – 40% saving)

• 100 trips = 70,000 ISK (700 ISK each – 54% saving)

Can You Avoid the Toll?

Yes – you can still take the old Route 1 road, which goes around the tunnel and is toll-free.

• Pros: No cost, scenic views

• Cons: Longer journey (adds 13.6 km) and can be dangerous in winter

If you’re driving in snowy or icy conditions, the tunnel is the safer choice. If you plan to take the old road in winter, we recommend booking a 4x4 rental car from Rhino Car Hire.

Car Hire Advice for Driving in Iceland

1. Pay the toll promptly to avoid late fees and rental company admin charges.

2. Keep documents handy – driving licence, rental agreement, and insurance.

3. Choose the right car – a 4x4 is highly recommended for winter driving.

4. Check your rental T&Cs – some agents include tunnel information when you pick up the car, but it’s still your responsibility to pay.

5. Plan ahead – if your route includes Akureyri, decide whether you’ll take the tunnel or the toll-free road.

Final Word

Driving in Iceland is an unforgettable experience, and aside from the Vaðlaheiði Tunnel, the country is toll-free for rental cars. With Rhino Car Hire, you’ll have the flexibility to explore the Ring Road, discover waterfalls, glaciers, and volcanoes, and travel at your own pace.

👉 Book your Iceland car hire with Rhino Car Hire today and hit the road knowing you’re fully prepared for tolls, tunnels, and everything this stunning country has to offer.