If you’ve searched phrases like “tipping in Iceland,” “tipping etiquette Iceland,” or “do you tip tour guides in Iceland,” trust me—you’re not alone. These questions come up a lot, especially for travelers used to tipping norms in the U.S. or Canada. And while Iceland has its own style when it comes to gratuity, the good news is this: it’s simple, once you know the local rhythm.
Oh, and while we’re talking money—do you need cash in Iceland? We’ll cover that, too.
Let’s clear it all up.
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Tipping in Iceland? Yes… But Also No.
Here’s the thing: tips in Iceland is not expected. It’s not built into the culture the way it is in many other countries. In fact, most Icelanders don’t even think about it. Why? Because service charges are already included in the price you see. That’s right—waitstaff, bartenders, taxi drivers, hotel staff—they’re all paid a full wage. Tips aren’t what keep them afloat.
That said, tipping isn’t considered rude or offensive either. It’s just… extra. A kind gesture. Something you might do if someone really went above and beyond—but no one’s holding their breath.
And honestly? It’s kind of refreshing. You can actually just enjoy your coffee or that mind-blowing lamb stew without doing tip math in your head.
Do You Tip Tour Guides in Iceland?
Now, here’s where things get a little more nuanced. If you’re asking, do you tip tour guides in Iceland, the short answer is: it’s appreciated, but not required.
Tour guides in Iceland—especially the independent ones leading glacier hikes, puffin-spotting adventures, or Northern Lights safaris—often rely on great reviews and word-of-mouth. But if someone spent 8 hours explaining volcanic history while helping you into crampons and keeping you from slipping on ice… tossing them 1,000–2,000 ISK (~$7–15 USD) as a thank-you? Totally appropriate.
Some people tip with cash, others just leave a nice review or say something kind. Both are cool.
But again—tipping isn’t mandatory, even for guides. Think of it more as a “thanks for making my trip epic” kind of gesture.
Two Highly Rated Tours We Took In Reykjavik:
In Reykjavik, we took two unforgettable walking tours—one dove into the city’s quirky history and Viking roots, while the other was a delicious food tour with stops at five amazing local spots. If you’re wondering should I tip in Iceland, it’s not expected, but appreciated—especially for great Iceland tour guide like ours! Most places include a service charge in Iceland, and while the Iceland krona is the local currency, cards are accepted pretty much everywhere.
What About Cafés, Taxis, and Hotels?
If you’re wondering how tipping etiquette in Iceland works in daily situations, here’s the lowdown:
- Restaurants and cafés: No tip required. Rounding up the bill or leaving small change is fine if you’re feeling generous, but you’ll never be side-eyed for not doing it. Also, we only ever used a car when paying for meals in Iceland.
- Taxis: Don’t stress about tipping here. Most people just pay the fare and say takk (thank you). Rounding up is polite, not necessary.
- Hotels: Bellhop service isn’t common, but if someone helps with your bags or arranges something special, feel free to tip. Still, tipping in Iceland’s hotel scene is very low-key.
- Spas or salons: Again, not expected. Just pay the rate—they’ve already factored in service.
If it feels weird not to tip, just remind yourself that Iceland’s pricing already includes what you’d normally add as gratuity.
Do You Need Cash in Iceland?
This one’s easy: almost everything in Iceland can be paid for with a credit or debit card. Seriously—even remote hot dog stands or roadside farm cafés often have card readers.
So when people ask, do you need cash in Iceland?, the real answer is: probably not—but carrying a small amount (like 5,000–10,000 ISK) isn’t a bad idea. Just in case. On that note, I have been to Iceland twice for a week adventure and have never used cash.
A few reasons to keep some Icelandic krona on hand:
- Rural bathrooms that charge a small fee
- Tiny countryside markets that might not accept foreign cards
- Tipping tour guides—if you decide to give a little extra
And don’t worry about exchanging at the airport. ATMs are available all over Reykjavík, and you can withdraw local currency as needed. No stress.
Icelandic Manners: Kindness Over Cash
You know what matters more than Iceland tipping culture? Being polite. Icelanders take pride in being welcoming but aren’t into exaggerated gestures. A genuine smile, saying “takk fyrir” (thank you), and just being respectful—that’s the good stuff.
If you really want to show appreciation, leave a glowing Google review for a local business. Mention the guide by name. Share your experience. That kind of feedback means more than a few kronur ever could.
Final Iceland Travel Tips: Don’t Overthink It
So let’s recap.
Tipping in Iceland? Not a big deal.
Tipping etiquette in Iceland? Relaxed and easygoing.
Do you tip tour guides in Iceland? Sure, if you want—especially after a great experience.
Do you need cash in Iceland? Not really, but a bit won’t hurt.
General Iceland travel tips? Keep things simple, say thank you, and enjoy the ride.
The real magic of Iceland isn’t in the tip jar—it’s in those jaw-dropping landscapes, the geothermal hot springs, the puffin colonies, the midnight sun. Don’t let tipping stress take up headspace meant for wonder.
Got more questions about tipping etiquette in Iceland or cultural customs? Drop them in the comments or share your own experience—every traveler’s story adds something to the map.
And remember: takk fyrir for reading.
💡 Bonus: Must-Have Travel Gear for Iceland (Trust Me, You’ll Thank Me Later)
While we’re on the topic of Iceland travel tips—especially when it comes to money (yes, cards are widely accepted, but let’s answer it once more: do I need to carry cash in Iceland? Not really, but a little change for small rural spots doesn’t hurt)—let’s talk about the gear that made my trip so much better.
- Waterproof Phone Pouch – Iceland’s waterfalls love to spray. This tiny, inexpensive lifesaver kept my phone dry and photo-ready through misty hikes and rainy strolls. It’s also great so you can take pictures while enjoying one of Iceland’s many lagoons.
- Lululemon Crossbody Bag – Sleek, comfy, and just roomy enough. Great for keeping your card (because again, travel money in Iceland = plastic over paper), phone, and lip balm handy while looking effortlessly cool.
- Collapsible Water Bottle – Iceland’s water is ridiculously pure. Fill up at your hotel or even a stream if you’re hiking (seriously), and this folds flat when empty to save space.
- Keen Hiking Boots – I wore these every day. From lava fields to black sand beaches, they were grippy, waterproof, and zero blisters. If you’re doing any walking beyond Reykjavík, don’t skimp on your footwear.
Throw these in your bag, skip the stress, and focus on what you came for—epic landscapes, geysers, and maybe some hot dogs.