Europe · Reykjavik
Cost of living in Iceland
Iceland is 4% more expensive than the US, ranking #6 of 203 countries we cover for cost of living.
World Bank data through 2024 · last reviewed 2026-06.
What drives the cost here
Price levels by category, where the world average = 100. Above 100 is pricier than the global norm; below it is cheaper.
In Iceland, housing & utilities is the priciest category relative to the world (220), while food & groceries is the most affordable (163).
Category price levels: World Bank ICP 2021 (world average = 100) · source
What your money is worth here
A $100,000 US lifestyle would cost roughly $103,500 in Iceland.
Quality of life
97/100 · #13 of 198Beyond cost — health, safety, and connectivity. The score is a transparent, equal-weight composite of the verified metrics below (see methodology).
About Iceland
Settled by Norwegian and Celtic (Scottish and Irish) immigrants during the late 9th and 10th centuries A.D., Iceland boasts the world's oldest functioning legislative assembly, the Althingi, which was established in 930. Independent for over 300 years, Iceland was subsequently ruled by Norway and Denmark. Fallout from the Askja volcano of 1875 devastated the Icelandic economy and caused widespread famine. Over the next quarter-century, 20% of the island's population emigrated, mostly to Canada and the US.
Read the full background
Denmark granted limited home rule in 1874 and complete independence in 1944. The second half of the 20th century saw substantial economic growth driven primarily by the fishing industry. The economy diversified greatly after the country joined the European Economic Area in 1994, but the global financial crisis hit Iceland especially hard in the years after 2008. The economy is now on an upward trajectory, primarily thanks to a tourism and construction boom. Literacy, longevity, and social cohesion are first-rate by world standards.
Background from the CIA World Factbook (public domain), archived 2026-06-03.
Frequently asked
Is Iceland expensive to live in?
Iceland is 4% more expensive than the US, ranking #6 of the 203 countries we track. Its most expensive category relative to the world is housing & utilities; food & groceries costs the least.
How much money do you need to live in Iceland?
A lifestyle that costs $100,000 in the United States would cost roughly $103,500 in Iceland, going by overall price levels. The salary translator turns your own figure into a local equivalent.
Is Iceland cheaper than the United States?
No. Its overall price level is 103.7, against 100 for the United States.
What is the quality of life in Iceland?
Iceland scores 97 out of 100 on our quality-of-life index (#13 of 198), a composite of life expectancy, safety, health, and connectivity, with life expectancy around 83 years.
Every number, sourced.
We cite the exact source and year for each figure. Derived values are computed at build time, never hand-entered.
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