How cashless is Iceland?

Iceland is an almost cashless society, with nearly every purchase made by credit and debit cards. You won't need much cash at all for your trip. However, there are some important things that you need to know about paying in Iceland before you arrive.



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Most of Iceland is extremely card-friendly. Even small local stores will typically accept card payments, so you won't need to rely on cash. Most locals pay with card as well.

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Most locals only use card payments instead of cash, and you likely won't run into any small businesses in any of the small Icelandic towns that only take cash, no matter how small your purchase is. Again, for the most convenience, opt to bring your credit and debit cards with you to Iceland and pay that way.

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No, you don't need any cash in Iceland. And yes, you can pay everywhere by debit or credit card. Note that some places (such as unmanned petrol stations) only accept credit cards with a 4-digit pin.

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Iceland is an almost cashless society, with nearly every purchase made by credit and debit cards. You won't need much cash at all for your trip. However, there are some important things that you need to know about paying in Iceland before you arrive.

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Tipping isn't mandatory or customary in Iceland, but it is always appreciated. The standard rate of tax on Icelandic products is 24%, with some products and services, including books, food and accommodation, taxed at a reduced rate of 11%.

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It is always best to pay using Icelandic króna or using your credit or debit card where possible. As with travelling in any location, we'd recommend always carrying your credit or debit card in addition to an adequate amount of local currency in cash.

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Prohibited articles
  • Narcotics and dangerous drugs.
  • Various weapons, e.g. daggers with blades exceeding 12 cm, switchblade knives and flick stilettos, knuckles and various truncheons, crossbows and handcuffs.
  • Finely powdered snuff.
  • Moist snuff to be used orally, also available in bags.


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If you are travelling to Iceland from the United States or anywhere else in the world you will probably need to buy an Icelandic Sim Card. You will also need to make sure that you have an unlocked phone to put it in. Have a chat to your home network provider about international plans first though.

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The best currency to take to Iceland is the local currency, the Icelandic króna. US dollars are also highly exchangeable at local banks and currency exchange offices. However, instead of converting physical banknotes, the cheapest way to pay in Iceland is to use a multi-currency travel debit card like Revolut or Wise.

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