Short answer: Not expected. Tipping is not customary in Iceland. Service and VAT are included in prices at restaurants, hotels, taxis and hairdressers, and staff are paid full wages. A tip for exceptional service is welcome but never expected.
Is service included?
No separate service charge appears on the bill, because service is already built into menu prices.
How much to tip in Iceland
| Who | Usual tip | Notes |
|---|---|---|
| Restaurants (sit-down) | Not expected | Service is included in the price, even at upscale restaurants. |
| Cafes and bars | Not expected | Tip jars are optional; leave small change if you like. |
| Taxis and rideshare | Not expected | Fares include service; rounding up is optional. |
| Hotel housekeeping | Not expected | The room rate covers staff wages. |
| Hotel porters | Not expected | Optional small tip for extra help. |
| Tour guides | Optional | Appreciated after a great tour, especially a long private one; some suggest 5 to 15%. Varies. |
| Hairdressers and spas | Not expected | Service is included in the price. |
| Food delivery | Optional | No firm custom; small tip if you like. |
Amounts are in the local currency (ISK). They are common customs, not rules: tip more for great service and less where it was poor.
How to tip
If you do want to tip, cash in Icelandic krona is best, for example a note in a cafe tip jar or handed to a tour guide. Foreign notes in a major currency are a second choice; avoid foreign coins, which banks cannot exchange.
What to avoid
Do not feel you must add a percentage to the bill; it is not the custom and service is already paid for.
Work out a tip
The tip calculator is set to Iceland and the local currency: enter the bill, pick a percentage and split it between the table.
Tipping with no cash
When you have no local cash, ask whether a tip can go on the card. More and more guides, drivers and performers show a QR code instead: point your phone camera at it and you can tip by card, Apple Pay or Google Pay without installing anything.
Street performers
Tipping a busker is always optional. If you enjoy the show, a coin or a note in the case is the custom, and more performers now show a QR code so you can tip by card. Rules for buskers by city:
Sources
- Visit Reykjanes: The tipping culture in Iceland
- Nordic Visitor: Iceland, other useful information
- Blue Car Rental: A guide to tipping in Iceland
Checked in October 2026 against the sources above. Customs change and vary between cities and venues.
Common questions
Is tipping expected in Iceland?
Not expected. Tipping is not customary in Iceland. Service and VAT are included in prices at restaurants, hotels, taxis and hairdressers, and staff are paid full wages. A tip for exceptional service is welcome but never expected.
How much should you tip at a restaurant in Iceland?
Not expected. Service is included in the price, even at upscale restaurants.
Is a service charge added to the bill in Iceland?
No separate service charge appears on the bill, because service is already built into menu prices.
Do you tip taxi drivers in Iceland?
Not expected.
How much do you tip hotel housekeeping in Iceland?
Not expected.
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