How to pay for parking in Reykjavík - A friendly guide for drivers in Iceland

Stress-free parking in Iceland’s capital

Whether you're popping into a café near Hallgrímskirkja or setting off on a downtown stroll before your next road trip stop, knowing how to pay for parking in Reykjavík can save time, avoid fines, and keep your Icelandic adventure stress-free.

As Iceland’s largest car rental company with decades of local driving expertise, Höldur is here to make your time behind the wheel as smooth as the open road. Let’s dive into everything you need to know about parking in Reykjavík, from apps to zones and local tips to make life easier.

Planning your Icelandic journey? Start with Höldur Car Rental, your trusted travel partner since 1966.

Parking in Reykjavík: the basics

Reykjavík is a walkable and friendly city, but when you're driving, it helps to understand how the city organises parking. Most public parking follows a colour-coded zone system, with paid hours and rates varying by location.

Here’s what to expect:

• P1 Zone (Red - city centre):
  630 ISK/hour.
  Charged 9 AM-9 PM weekdays, 10 AM-9 PM weekends and holidays.
  Max stay: 3 hours
  
  
• P2 Zone (Blue - just outside downtown core)
  230 ISK/hour.
  Charged 9 AM-9 PM weekdays, 10 AM-9 PM weekends and holidays.
  
  
• P3 Zone (Green - residential/museum areas)
  230 ISK/hour for the first 2 hours, then 70 ISK/hour.
  Charged weekdays from 9 AM-6 PM
  
  
• P4 Zone (Orange - outer areas)
  230 ISK/hour
  Charged weekdays from 8 AM-4 PM

Parking is free outside these hours and on official public holidays such as Christmas Day, New Year’s Day, Easter, 1 May, Iceland’s National Day (17 June), and more.

You’ll find a mix of on-street parking, public car parks, and secure garages throughout the city. Always check signage for zone markings, temporary restrictions, or time limits before leaving your vehicle.

For more on Icelandic road rules and driving tips, visit Höldur's Driving Guide.

How to pay for parking in Reykjavík (step-by-step)

Paying for parking in Reykjavík is easy and tech-friendly. Here’s how:

Check the parking zone

Signs near your spot will show the zone (P1-P4) and the hourly rate.

Choose your payment method

You can pay by:

• Parking machine (card or coins)
• Mobile apps (the most convenient)

Most visitors prefer apps because they’re fast, in English, and let you extend parking remotely.

Use a parking app

Parka

Local Icelandic app that supports pay-by-zone. User-friendly and perfect for short stays.
Download Parka

EasyPark

Widely used across Europe. Especially handy if you’re visiting other Nordic countries too.
Download EasyPark

 

Once installed, just enter your licence plate, choose a time, and confirm your zone, no need to display a paper ticket.

Tip: Set reminders in the app to avoid overtime fees.

Understanding Reykjavík’s parking zones (P1-P4)

The city is divided into four parking zones, each colour-coded. You’ll often see these colours displayed on signage and in the Parka or EasyPark apps. We'll include an image of the coloured zones to help you visualise where each one applies.

• P1 zone (Red and Pink): 630 ISK/hour. Covers the city centre including Harpa and Laugavegur. Most expensive and busiest.
• P2 zone (Blue): 230 ISK/hour. Covers areas like Hallgrímskirkja and Hlemmur.
• P3 zone (Green): 230 ISK/hour for the first 2 hours, then 70 ISK/hour. Found on residential edges and near museums.
• P4 zone (Orange): 230 ISK/hour. Located on the outer ring of the city, ideal for parks and longer stays.

For current rates and zone information, see the official Reykjavík site.

 

Parking for Electric Vehicles in Reykjavík

If you’re driving an electric vehicle in Reykjavík, you’ll find a growing number of public charging stations throughout the city. These are typically located near major hotels, car parks, and public buildings, and are clearly marked for EV use. Charging spaces are reserved while actively charging, so it’s important to move your vehicle once your session is complete. You can locate available chargers using apps like ON, PlugShare, or your vehicle’s built-in navigation system. Most stations accept foreign credit cards and offer contactless payment.

 

Forgot to pay? Here’s what happens

Whether you spot a fine on your windscreen or receive notice after your trip, paying a parking ticket in Iceland is straightforward, especially if you act quickly.

Still in Iceland?
You can pay your fine in several ways:

• Online using the city portal by entering your vehicle number and the date of the fine
• At a local bank such as Arion Banki, Íslandsbanki or Landsbankinn
• Using the barcode or reference number provided on the ticket

If anything is unclear, the Höldur team will be happy to assist.

For a deeper look at handling fines, visit Höldur’s guide on how to pay for parking fines in Iceland.

Already back home?
If Höldur contacts you about a fine:

• You'll receive a copy or summary of the citation
• Payment may be processed directly by our team using the card on file
• A clear administrative fee may apply

At Höldur, we aim to make this process transparent and hassle-free, so you can focus on the memories, not the paperwork.

Local tips for smart parking

Reykjavík locals know a few tricks, here are some you can borrow:

• Evenings after 6pm: Many zones stop charging, perfect for dinner reservations (except Zone 1, which charges until 9pm on weekdays).
• Avoid narrow residential streets: Especially if you're in a larger vehicle.
• Don’t block driveways or emergency access routes: Enforcement is strict.
• Use multi-storey car parks if you're unsure about street parking, they’re well marked and often have lower risk of fines.

For tips on safe and legal overnight parking locations, check out our guide on overnight parking in Reykjavík.

 

Frequently asked questions about paying for parking in Reykjavik

How do I pay for parking in Reykjavík?

Use either a parking machine (card/coin) or a mobile app like Parka or EasyPark. Just enter your vehicle plate number, time, and zone.

Is there an app to pay for parking in Reykjavík?

Yes. Parka and EasyPark are the two main apps used across the city.

What happens if I forget to pay for parking?

If you're still in Iceland, you can pay your fine online or at a local bank. If you were fined in Reykjavík, use the official portal to pay. If you’ve returned home, Höldur will guide you through payment, which may include an admin fee.

Can tourists use Icelandic parking apps?

Absolutely. Both Parka and EasyPark are available in English and work with foreign credit cards.

When is parking free in Reykjavík?

Parking is typically free after 6pm (except Zone 1, which charges until 9pm on weekdays), and on public holidays. Major holidays include Christmas Day, New Year’s Day, Easter, and Iceland’s National Day (17 June).

How do I know which parking zone I'm in?

Look for signage where you park. Zones are clearly marked with colours and pricing.

Where is the best place to park in downtown Reykjavík?

Multi-storey car parks or streets just outside Zone 1 offer better availability and more affordable rates.

Can I pay in advance or extend my parking?

Yes. With the apps, you can top up remotely and even set alerts to avoid expiry.