Tipping in Iceland: what to expect
Tipping in Iceland isn’t generally expected. Service and taxes are already included in prices, so a tip is optional. So how does that play out in a restaurant, a taxi or on a tour?
Is tipping expected in Iceland?
Generally, no. Menu prices and prices at the till already include service and VAT, and a separate service charge on the bill is unusual. Tipping isn’t part of everyday life for most people here.
If someone goes out of their way for you, a tip is welcome. It’s a thank-you and nothing more.
Tipping, place by place
In restaurants and cafés it isn’t expected. If the service was great, rounding up or leaving something in the tip jar is a nice gesture, but it’s optional. The same goes for bars. In a taxi, pay what’s on the meter. Hotel staff don’t expect tips either, at reception or for housekeeping.
Tipping isn’t usual at swimming pools and spas (more on those in our guide to Reykjavík’s pools). On tours, a tip isn’t expected either. If a guide was great and you want to show it, that’s up to you. On our food tour, every tasting is included, and tips are optional and never expected.
How to tip if you want to
If you want to tip by card, ask whether it can be added to the payment. For cash, use Icelandic krónur. Icelandic banks can’t exchange foreign coins, so a tip in foreign coins mostly leaves someone with a pocket of change they can’t use.
Cards are widely accepted, and many visitors get through a whole trip without cash.
Is it rude to tip in Iceland?
No. A tip isn’t expected, but it isn’t considered rude either. If you’d rather say thanks without money, a warm “takk fyrir” (thank you) works too, and our guide to saying hello in Icelandic has a few more words.
Where to save instead
A few ways to keep costs down: lunch menus often cost less than dinner, tap water is free in restaurants, and budget grocery stores are fine for snacks and picnics. For the rest of your days, see our things to do in Reykjavík.
Why Iceland works this way
Wages in Iceland are set through collective agreements, and service is treated as part of the price rather than something added on top.
Quick answers
Do you tip in restaurants in Iceland?
Generally not. Service and VAT are already in the menu prices. You can leave something extra for great service, but it’s optional.
Should I tip a tour guide in Iceland?
It isn’t expected. If you felt the tour deserved one, a tip is a kind gesture, but it’s entirely optional.
Is it rude to tip in Iceland?
No. A tip isn’t expected, but it isn’t rude either. A friendly “takk fyrir” (thank you) is appreciated too.
Do I need cash in Iceland for tips?
Not usually. Cards are widely accepted, and you can ask whether a tip can be added to a card payment. For cash tips, use Icelandic krónur.
Sources
Written by Elfar Tjörfi Steinason. We checked the facts in this article against these sources on 19 October 2026:
