Tipping in Iceland: Essential Information for Travelers

By Johanna Georgsdóttir Verified Expert

Is tipping customary in Iceland? Many people who are planning to visit the country have this very important question. Tipping in Iceland is often a controversial topic that brings a lot of arguments, some for and some against. Learning about the Iceland tipping culture, or lack thereof, will help you decide how to approach this often sensitive subject.

Is Leaving a Tip Expected in Iceland?

Is it customary to tip in Iceland? The answer is no, it isn’t a custom in Iceland to tip for any type of service. The cost of everything, from tours to meals to accommodations, includes good service. Everything is priced in a way that covers the business costs, so you don’t have to worry about tipping. No one in Iceland is expecting a tip. However, this doesn’t mean you absolutely can’t tip.

So, should you tip in Iceland? The answer is that it depends on what you want to do. Unlike some places, leaving a tip in Iceland isn’t illegal, nor is it considered rude. In fact, you are free to tip for anything if you want to. However, it’s important to remember that you don’t have to. No one will be upset or offended if you choose not to tip.

Tipping by service in Iceland (at a glance)

Now that we’ve answered the question, “Do you tip in Iceland?” it’s important to discuss when it can be appropriate to tip. Keep in mind that a tip is never required, but these are situations when you can feel free to tip if you are so inclined. 

It’s also essential to understand that if you do intend to tip, you will need cash (even though Iceland is mainly a cashless society). The card readers don’t offer the option to add a tip to your card. Should you wish to still leave a tip, a good tip (no pun intended) is that you can always ask if they can enter a rounded total on the card terminal.

Tips for services

Should you tip in Iceland restaurants? What about other services? In general, whenever you are provided with a service, you are free to offer a tip. Some providers may decline the tip, but it will never offend them. Others will welcome the extra funds with appreciation. In the end, the decision to tip lies solely with the consumer. There is no expectation.

As for how much to tip in Iceland, the only correct answer is it’s up to you. There is no standard for an appropriate amount to tip.

Do I Tip a Taxi in Iceland?

Taxi services in Iceland can be costly. If you are expected to add a tip on top of the cost of your ride, getting around Iceland by taxi can be cost-prohibitive. You will not be expected to leave a tip if you take a ride in a taxi. The fare you see on the meter is the only amount you are expected to pay.

Is Tipping Expected at Restaurants in Iceland?

The most common places visitors think they may need to tip are in restaurants. It’s a well-known fact that dining in Iceland can be expensive, but it can feel strange for visitors, especially those from North America, to not leave a tip. However, the price you see on the menu is the cost of your meal, nothing more or less. 

Is Tipping Hotel Staff Customary? 

Some visitors are used to leaving a tip for hotel staff for their room cleaning services. In Iceland, this step is also not required. You don’t have to worry about offending the hotel staff if you choose not to tip. 

Should You Tip Tour Guides?

Finally, you may be wondering whether you should tip guides for any tours you take. The answer depends again on what you feel is right. You won’t be looked down upon for not offering a tip, but if you feel your guide has gone above and beyond, it can be appropriate to tip. Don’t forget to also tip the driver in addition to the guide if you do choose to do so.

In the case of free walking tours, we all know that an optional contribution is expected at the end of the tour. Besides cash, most guides will also accept cards of even use QR codes for convenience.

Cultural Insights on Why Tipping Isn’t Common in Iceland

While it may feel awkward to forgo a tip on your vacation, there are many good reasons why tipping isn’t common in Icelandic culture. First and foremost, by law, prices are shown clearly and include VAT. Tipping is not mandatory or expected. Iceland also has a strong emphasis on social equality, which means people are far more likely to earn a fair wage for their work.

Wage agreements in Iceland are well-regulated and ensure all employees across every industry are paid appropriately for their work. Individuals also take great pride in their work. They don’t need the extra financial incentive to provide better service. 

Practical Advice for Visitors

Do people tip in Iceland? Of course, some individuals choose to tip service providers, such as hotel cleaning staff, wait staff, and guides, but it definitely isn’t a requirement. Most visitors in Iceland pay for things with a credit or debit card, and because cash is required to tip, many find themselves without the cash to do so.

If you are paying in cash, one way you can make it easier to tip is to round up your total. Doing so will help you avoid filling your wallet or pocket with coins. Even if it’s just a little bit, any amount for a tip is generally appreciated.

While it may be tempting to show your appreciation for service with a cash tip, there are other options. Some visitors bring a small token from their home country to give as a tip. A simple “takk fyrir” (Icelandic for thank you) or leaving a positive review can go a long way toward showing your appreciation without paying extra.

Frequently Asked Questions on Tipping in Iceland

Do you tip in Iceland?

Not really. Tipping isn’t expected here since service charges are already built into the price.

Is tipping customary in Iceland?

Nope! Just like in many parts of Europe, tipping has never really been part of the culture.

How much to tip in Iceland?

You don’t have to tip at all, but if you feel like rounding up the bill or leaving a little change, it’s always a nice gesture.

Do people tip in Iceland?

Locals usually don’t, though sometimes they’ll round up for convenience.

Should you tip in Iceland?

No pressure AT ALL, you’re not expected to tip, and the good news is that great service is already included in what you pay.

Enjoy Your Trip With or Without Tipping

Now that you know whether it’s appropriate or expected to tip in Iceland, it’s time to start planning your trip. Knowing whether to tip can help you plan your budget, whether you intend to rent a car in Iceland or travel with tours.