How does the new road tax affect rental cars in Iceland? ( 2026 Guide)
This guide gives a clear summary of how car rental agencies apply road taxes under Iceland’s new 2026 law. It also clarifies why these charges are added and how Lotus Car Rental manages them. The road tax is computed per kilometer at 6,95 ISK for all vehicles under 3,500 kg (7,716 lbs). This guide will explain why the law was introduced and how rental cars handle the related costs tied to your rental.
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