Starting January 1, 2026, a kilometer fee shall be paid for all vehicles, regardless of their energy source. The fee is determined by the vehicle's weight.
The fee is 6.95 ISK per kilometer for passenger cars and SUVs up to 3.5 tons.
Owners of electric cars, plug-in hybrids, and hydrogen cars who have previously logged the odometer reading in the past 2 years shall continue to log the odometer reading at least once a year.
Important dates for the first logging
January 20, 2026 - Last logging date The odometer reading must be logged on My pages on Ísland.is or in the Ísland.is app no later than this date if no registration has been made in the year 2025.
February 1, 2026 - First due date The due date for the kilometer fee for driving in January. The invoice is based on the calculated average driving or the Directorate of Internal Revenue's average driving estimate if two odometer readings are not available. The final due date is 14 days later.
April 1, 2026 - Non-registration fee A Non-Registration Fee of 20,000 ISK will be imposed on those who have not logged the odometer reading. If no reading has been logged before April 1, you can no longer log electronically and must take the car to an inspection station to have the meter read. The fee will be waived if you attend an inspection station within 30 days of the fee being imposed.
Fee
The fee is ISK 6,95 per kilometer for vehicles and SUV up to 3,5 tons.
The fee increases progressively based on the weight of the vehicle.
The fee is similar to how utility bills for electricity and hot water are charged. An estimate of your average driving is based on your readings. You are billed according to that estimate until you log again. With each log, a new estimate of average driving is created, and at the same time, your account is settled for the last period.
by making an appointment at an inspection station; Aðalskoðun and Frumherji offer such a service
Frequency and Implementation of Readings
Motorcycles and Passenger Vehicles, Trailers, and Tractors up to 10 tons
Frequency: At least once a year, but you are allowed to log a reading every 30 days.
Implementation: Logging shall be done by the owner or custodian of the vehicle, a certified inspection site, or during a regular inspection.
Trucks, Buses, Trailers, and Tractors Heavier than 10 tons
Frequency: At least every 6 months, but logging is permitted at any time.
Implementation: At least once a year, the reading must be performed by a reading provider, for example, during the main inspection. The other reading can be done by the owner or custodian themselves or by ordering a reading from a certified inspection site.
Rental Cars
Frequency: At least every 6 months, but logging is permitted at any time.
For renters of rental cars in long-term lease who are registered as custodians in the vehicle registry, the general rules regarding the frequency and implementation of readings apply.
A reading that is logged on the last day of the month takes effect the following day.
If you enter the wrong number, you can re-enter on the same day, and the second number will apply. At midnight, entries will close for the next 30 days. You may log a reading every 30 days.
If the entry is not corrected within the day and an excessively high odometer reading is logged, the vehicle must be taken for a reading at an inspection station or certified inspection site in order to log the correct status.
Subsequently, a reading must be logged again 30 days later on My pages on Ísland.is or the Ísland.is app, in order to establish two correct odometer readings (which are required to calculate the average driving distance)
If more than a year has passed since the last logging:
you can no longer log (the reading) yourself and must have the status logged at a certified inspection site)
your estimate will increase to higher benchmark figures (60 km/day for individuals and 165 km for companies and institutions).
a Non-Registration Fee will be imposed, amounting to 20,000 ISK for cars up to 10 tons and 40,000 ISK for cars heavier than 10 tons.
Upon change of ownership or registration of a new custodian of a vehicle in the vehicle registry, the odometer reading must be logged.
The buyer or new custodian must agree to the logged odometer reading. Upon the change, a settlement is sent to the seller.
The new owner or custodian takes over the payment of the kilometer fee the day after the registration of the change of ownership.
When a vehicle is moved out of the country and later deregistered without being brought back to Iceland, the odometer reading does not need to be logged upon deregistration if the odometer reading was logged upon export.
In order to surrender license plates, you must log the odometer reading. The settlement for the last period will occur at the end of the next month.
It is prohibited to register the vehicle back into traffic unless the outstanding kilometer fee (and, where applicable, the Non-Registration Fee, default interest, and collection costs) has been paid.
The condition for the exemption is that the liable owner or custodian logs the odometer reading of the vehicle:
upon departure from the country
upon arrival back in the country
along with specifying that the transfer out of the country is temporary.
Toll authorities are permitted to verify the logging of the liable party.
If a vehicle is 10 tons or more in total weight, toll authorities will read the meter upon departure and arrival of the vehicle to confirm the correct logging of the liable party.
A special application for the cancellation of the kilometer fee due to driving abroad must be submitted to the Directorate of Internal Revenue after the vehicle has returned to the country. Confirmation of the temporary export must be presented.
Settlement upon transfer out of the country
When logging the odometer reading due to the transfer of the vehicle out of the country, the kilometer fee from the last logging must be settled up.
Loggings that apply to the kilometer fee calculation:
Every time the following changes are made to the registration in the vehicle registry:
Vehicle is temporarily decommissioned from traffic.
A change in vehicle usage is registered.
Change of ownership is reported, or a change is made to the registration of a custodian.
Vehicle is newly registered, deregistered, or a refund of a vehicle deposit is applied for.
Loggings that do not apply to the calculation (settlement):
When vehicles go in for repair.
When insurance damage occurs.
When the police deem it necessary, for example if a driver has been stopped during traffic control/inspection.
Monthly payment
Estimate of average driving
The amount of the kilometer fee is based on an estimate of your average distance driven, which is compiled from the available data.
If there two odometer readings from the current owner are available, the estimate is based on the average distance driven during that period. Example: If the average last period was 30 km/day, it is assumed that you will continue to drive 30 km/day and you will receive a bill based on that.
The kilometer fee is to be paid monthly. The fee is a provisional payment until the next logging. A notice will be sent to the payer's online bank.
Due Date and Final Due Date
Payment is due on the first business day of each month, and the final due date is 14 days later.
If the final due date falls on a weekend or public holiday, it is moved to the next business day. Default interest is calculated from the final due date.
If the kilometer fee is unpaid on the final due date, you cannot take the vehicle to an inspection. Police are authorized to seize the vehicle's license plates for storage until the fee has been paid.
Settlement
Tax assessment based on actual driving
When you log an odometer reading, a settlement is made that adjusts your payments retroactively. The difference between the estimated driving and actual driving during the period is settled.
Example: If 100 days have passed between loggings and you drove 4,000 km, then the average driving is 40 km per day for the period.
If the estimate assumed that the average driving was 50 km/day, then you have a credit. If you owe the government, the credit will go towards the debt.
If the estimate was based on an average driving of 30 km/day, then you have underpaid and will receive an invoice for the difference.
If you do not log a reading within the time limits, the estimate of average driving will increase from that time according to The Directorate of Internal Revenue's average driving estimate.
Settlement payment
With each logging of actual driving, a settlement is made.
The kilometer fee is charged retroactively, and a payment slip is sent to your online bank.
Two Bills
If the estimate of average driving was too low in the last period, two bills will be sent after the settlement has been made:
A bill for what was lacking based on actual driving in the last period.
A bill according to the new estimate of average driving.
Due Date and Final Due Date
The due date for the settlement is the first day of the second month after the last registration, and the final due date is 14 days later. If the final due date falls on a weekend or public holiday, it is moved to the next business day. Default interest is calculated from the final due date.
Example: If you log a reading on March 24, the estimate for March is based on that logging. The settlement for the preceding periods will be sent on May 1.
Owners of electric cars, plug-in hybrids, and hydrogen cars have logged the odometer reading and paid the kilometer fee since 2024. Logging the odometer reading of these vehicles in 2026 calls for a settlement of the average distance driven for periods since the last logging. This may extend to periods in 2025.
The procedure for the settlement depends on what the fee amount was at that time.
The kilometer fee in 2025 was:
6 ISK per kilometer for electric cars and hydrogen cars.
2 ISK per kilometer for plug-in hybrids
Payer
The registered owner is generally the one responsible for paying the fee. If the vehicle is under a lease agreement (such as a property- or finance lease or long-term lease), the liability shifts to the registered lessee in the vehicle registry.
However, the owner and the custodian (lessee) bear undivided responsibility for the payment of the kilometer fee, fines, and other costs, meaning that the collector can pursue either party.
Amendments and Sanctions
Amendment of the estimate or imposition of the kilometer fee
The assessment of the kilometer fee and the Non-Registration Fee may be appealed to The Directorate of Internal Revenue within 30 days of publication in the digital mailbox.
The Directorate of Internal Revenue has three months to make a decision.
Appeal to the Tax Appeals Committee
It is permissible to appeal the ruling of The Directorate of Internal Revenue and reassessment to the Tax Appeals Committee according to the provisions of the law regarding the Tax Appeals Committee.
If you do not log the odometer reading at least once a year, a Non-Registration Fee will be imposed on the vehicle owner, and they will be called in for a reading of the odometer status at an inspection site.
Amount of the Non-Registration Fee
20,000 krónur for a vehicle under 10 tons.
40,000 krónur for a vehicle of 10 tons or heavier.
The Non-Registration Fee is reduced by 50% if you pay the fee and have the status logged at a certified inspection site within 30 days.
If registration has not been completed three months after the imposition of the Non-Registration Fee, the police may remove the registration plates. The plates will be returned after logging at a certified inspection site has taken place.
The owner and the custodian bear undivided responsibility for the payment of the Non-Registration Fee, meaning that the collector can approach either party.
Other Rules Applied in 2024 and 2025
Consequences of failing to log the odometer reading at least once every year:
A Non-Registration Fee in the amount of ISK 50,000 is collected after January 30th. The owner is called in for a reading of the odometer status at an inspection site.
The Non-Registration Fee decreases by 50% if you have the odometer status logged at a certified inspection site within 15 days.
If logging has not been done three months after the assessment of the Non-Registration Fee, the police may remove the registration plates. The plates are returned after logging at a certified inspection site has taken place.
Consequences of Failing to Pay the Kilometer Fee
Refusal of Routine Inspection. If an overdue invoice for the kilometer fee is past the final due date, the inspector shall refuse inspection.
No Change of Ownership. The seller's kilometer fee must be paid so that a change of ownership can be registered.
License Plates May Be Removed. Police may seize license plates for storage if the kilometer fee has not been paid by the final due date or if the Non-Registration Fee has not been paid within three months and the odometer reading is still unlogged.
Forced Sale May Be Demanded. Unpaid kilometer fee, Non-Registration Fee, default interest, and collection costs rest as a statutory lien on the car. This lien (debt) has priority over other liens that might be on the car, for example, unpaid car loans. This means that a forced sale of the car may be demanded to cover the debts without a court judgment, settlement, or judicial seizure.
Distraint May Be Executed. It is also permissible to collect overdue debts related to the kilometer fee and Non-Registration Fee by distraint (seizure of assets) from the registered owner or custodian/lessee without a court judgment, settlement, or judicial seizure.
The Directorate of Internal Revenue monitors the basis for the kilometer fee assessment and other matters intended to ensure the correct submission of data and information. This applies both to parties liable for the fee and those liable for reporting, such as inspection sites and repair shops.
Violations of the law regarding the kilometer fee can lead to fines, and severe violations may result in imprisonment.
Do you have a question about the kilometer fee? Drop us a line at km@skatturinn.is
