A Quick Guide to Tipping in Iceland: How & Where
Tipping etiquette varies by country and can confuse visitors on how much and where to tip. This quick guide provides the answers you need on tipping in Iceland.
You may have heard that tipping in Iceland is not expected. The service charges and wages are high, making it unnecessary to tip. Although Icelanders do not expect tips, certain situations are appropriate for tipping.
The general value-added tax rate is 24%, as stated by the PwC, a worldwide tax summary site.
For visitors this number seems steep – so let’s cover what this rate doesn’t include. Many of the following services have gratuity included in the cost, for example, accommodations, transportation, books, and food have this included. The tax rate on these services is around 11%.
When To Tip In Iceland:
It can be a bit daunting when you receive a bill at a restaurant and you see the “tip” section. Typically you can review the service charge when you pay and see if a gratuity was included or not.
For Americans, tipping is a part of the culture and norm, however, this is not the case for Iceland. If you leave a restaurant feeling guilty about not leaving a tip, just remind yourself of the cultural differences. If you aren’t able to pass that feeling, leaving a small tip is cherished by the service workers.
Below are some quick answers for when to tip:
✅ Restaurants: Fine dining restaurants or a restaurant with great service and food is a the perfect place to leave a tip.
While I was in Iceland and ate at Sumac Bar & Grill, I was taken aback by how phenomenal the service was. From the moment we sat down, the waitress gave recommendations and answered any questions we had. The food was some of the best I have ever had. Plus, they have delicious wine. This was the perfect place to tip!
✅ Tour Guide: Guided tours are a common place for visitors to tip.
I snorkeled with DIVE.IS in the Silfra Fissure and was impressed with how knowledgeable and fun the guides were. Once we were out of the water, I thanked my guide and provided him with a tip to show my appreciation.
Tour guides can easily make or break your experience, I believe that when you have a great tour guide, it’s important to leave a tip. Doing so provides extra motivation for them to continue going above and beyond while sharing their passion with all.
✅ Hotels: Some hotels go above and beyond by providing shuttle service, setting up tours, or top-notch room service. A small tip is a great thank you. Another way to thank the staff is to leave a note in the hotel or thank the front desk before you leave.
✅ Cafes: Most cafes have tip jars or have an electronic payment system that allows you to leave a tip. If you enjoy the service, coffee, or atmosphere, leaving a tip, even if it is only $1 is a great way to say thank you.
When Tipping In Iceland Isn’t Necessary:
It isn’t mandatory to tip in Iceland due to service charges and wages. Don’t feel bad if you don’t tip in Iceland for these reasons.
Knowing the unwritten rules of tipping in cultures can save you some money in various countries. Well, saving money on extra tips when those charges are already included.
Tipping In Iceland FAQ:
Can you tip in U.S. Dollars?
Yep!
The currency in Iceland is the Icelandic krona, which is another way to tip if you prefer to use local currency.
How much do you tip?
This varies per service and your experience. If you round up 10% on the service this is an easy way to skip the math and give a generous tip.
Conclusion
Tipping in Iceland is not expected, but is appreciated by service workers.
When you see that one of these Icelandic workers is extra thoughtful, provides good service, or goes above and beyond, a 5-10% tip shows you are thankful for them.
Happy Trails,
Mindful PNW Travels
Ready to book your trip to Iceland?! Here are some of my favorite resources for best prices:
- Guided Tours: GetYourGuide
- Hotels: Booking.com
- Car Rentals: Rentalcars.com
