Skip to content

Stay

Where to Stay in Reykjavik for the Northern Lights (2026/27): The Best Areas, 12 Hotels and the 800 ISK Room Tax

By Sophie, Gently Yonder writer

Where to stay in Reykjavik for the northern lights 2026/27: downtown, harbour, Golden Circle and South Coast, 12 hotels, the 800 ISK room tax and airport buses.

Last updated · 16 min read

Build My Trip Checklist All guides

No one pays to be recommended here, and we say when a free or cheaper option wins. Our promise →

In this guide15 sections
  1. The short answer
  2. The season: what the official sources say
  3. Dark places near the city, and Þingvellir
  4. Reykjavík or the countryside?
  5. Iceland’s accommodation tax: 800 ISK a room a night
  6. Getting in from Keflavík, and driving in winter
  7. Downtown 101 and the hill: the first-trip base
  8. The Old Harbour and Grandi: Harpa, the quays and a spa
  9. Hlemmur and Borgartún: the east side
  10. The Golden Circle side: Þingvellir and the dark sky
  11. The South Coast: farther from the lights
  12. How to book Reykjavík for the northern lights
  13. All 12 at a glance
  14. Before you go
  15. Frequently asked questions

Reykjavík is one of the few capitals where the northern lights can show above the city on a clear, active night, but the town’s own lights work against you. Visit Iceland says the season runs from September to April and that heading away from city lights helps, particularly when the aurora is faint. The hotel bill has its own detail: an accommodation tax of 800 ISK for every room, apartment or separately let bed, every night, on top of 11% VAT.

This guide covers five bases, 12 hotels (four in the countryside, reached by road), the season, dark places near the city, the tax, the airport buses and winter driving. The hotels are researched picks, chosen for location, what each property publishes and consistent guest feedback, and each was checked as operating in November 2026. No hotel pays to appear here. No hotel can promise a sighting, and neither can we.

The short answer

If you want… Stay in Why
a first trip, with restaurants and tours at the door Downtown 101 and the hill Laugavegur, Bankastræti and Hallgrímskirkja are all within walking distance, and tour pick-ups are in the centre
the harbour and a spa after a night out The Old Harbour and Grandi Harpa, the quays and two hotels with spas
breakfast in the rate, parking and a lower bill Hlemmur and Borgartún Larger hotels in the 105 postcode and a hostel with a kitchen
a dark sky, a short drive from the city and Þingvellir The Golden Circle side ION Adventure Hotel at Nesjavellir and Hotel Grímsborgir, which lists a northern lights wake-up call
the most distance from the town’s lights The South Coast Hotel Rangá, which runs an aurora wake-up service and an observatory, and Hotel Katla near Vík

Not sure which area? Rank these areas for your trip: pick what matters and see the reasons.

Aerial view of a snow-dusted city of low coloured roofs, with the tall stepped tower of a concrete church and a cross in the foreground under a grey sky
Reykjavík from above in winter, with the tower of Hallgrímskirkja, as titled by the photographer. Photo: Willian Justen de Vasconcellos / Pexels

The season: what the official sources say

Months. Visit Iceland, the country’s official travel site, puts the season at September to April and says the lights are most active around the equinoxes, while midwinter offers more hours of darkness. On a clear, active night they are often visible from Reykjavík too. Hotel Rangá gives its own window as September to March.

The forecast. The Icelandic Met Office says the aurora needs dark and partly clear skies. Its forecast page pairs a cloud-cover map with activity at midnight on a scale of 0 to 9 (the Kp index), and its guidance says even grade 2 can be beautiful and grade 3 dazzling. Cloud is the thing to watch: a high number under solid grey sky shows nothing.

No promise. Visit Iceland says there are no guarantees, and that the aurora can start as a faint arc or glow. Plan for several evenings, not one.

Dark places near the city, and Þingvellir

Visit Reykjavík, the city’s official tourist site, calls Grótta lighthouse in Seltjarnarnes one of the best-known viewpoints near downtown, facing open ocean with few buildings around it. The path to the lighthouse is only usable at low tide and disappears quickly when the water comes in, so check tide times. Öskjuhlíð, a wooded hill, blocks some city light; Elliðaárdalur, Álftanes beach and Heiðmörk, a protected area with very little light pollution, are darker, and the last needs a car. The site adds that buses run until around midnight, so plan your return.

Þingvellir National Park is the usual step further out. Its own site lists parking at 1,000 ISK for a car with five or fewer seats, and the Hakið visitor centre is open 09:00 to 17:00 from November to March. It says nothing about night visits, so ring the park on +354 488 1800 before planning an evening there.

Reykjavík or the countryside?

The city gives you restaurants, buses and tour pick-ups, and streetlights. A countryside hotel gives you darkness and sometimes a call when the lights appear, but costs driving time and depends on weather. Visit Iceland says several countryside hotels offer a northern lights wake-up call. Hotel Rangá says guests press a button on the in-room phone and are called whenever the lights should appear, and Hotel Grímsborgir lists a wake-up call in its rooms. Ask any hotel what its service covers. A common pattern is two or three nights in town and one or two on the Golden Circle or the South Coast.

Iceland’s accommodation tax: 800 ISK a room a night

Skatturinn, the Icelandic tax authority, says the accommodation tax (gistináttaskattur) is charged on each sold accommodation unit, a let of up to one day and night.

Charge Rate
Hotels, guesthouses and other lodgings with category II–IV operating licences 800 ISK per unit, per night
Campsites and pitches for campervans, caravans and similar 400 ISK per unit, per night
VAT on hotel and guest-room rental (Ísland.is guidance, dated 25 January 2025) 11%

Per room, not per guest. Skatturinn says the unit is generally not the individual: a hotel room is one unit, each apartment a hotel lets is one unit, and where a hostel lets each bed separately, each bed is one unit. We found no switch to per-guest charging for hotels; the only per-guest charge on the page is for cruise-ship passengers, which operators have remitted since 1 January 2024. The page gives no date for the rates. ION Hotels’ own FAQ still says 666 ISK a room, so expect 800 and check the total.

Our arithmetic: two nights at 60,000 ISK a night, VAT included, is 120,000 ISK, and the tax adds 2 × 800 = 1,600 ISK, for 121,600 ISK if shown as a separate line. Two friends in two hostel dorm beds for two nights pay 2 beds × 2 nights × 800 = 3,200 ISK in tax between them. Some hotels quote the 800 ISK inside the rate and some add it at the end.

Getting in from Keflavík, and driving in winter

Keflavík Airport is about 50 kilometres from Reykjavík, by Visit Reykjavík’s figure.

Driving in winter. Safetravel, Iceland’s safety site, says to check that a rental car has winter equipment such as winter tyres, and that a 4x4 helps but does not rule out skidding on ice. Front and rear lights must be on at all times, and daylight is limited, so allow extra time. It points drivers to umferdin.is for road conditions and to the Met Office (vedur.is) for the weather, at least once a day, and gives 112 for emergencies. If conditions worsen, wait somewhere safe. On our check date its front page carried a wind alert for 2 and 3 November 2026 for northern Snæfellsnes, the Westfjords and Tröllaskagi: alerts change daily.

Downtown 101 and the hill: the first-trip base

Downtown is the old town between the harbour and Tjörnin, the pond. Laugavegur, the main shopping street, runs east from Bankastræti, and Skólavörðustígur climbs from it to Hallgrímskirkja. Everything is on foot, and the cost is light: this is the brightest part of the city.

A wet, snow-edged street at dusk with lit shop windows, a few people walking and a tall church spire in the distance at the end of the road
A downtown Reykjavík street at dusk in winter, with the church spire in the distance, as titled by the photographer. Photo: Dorde Drazic / Pexels

Where to stay in Downtown 101

How the hotel links work: a hotel’s name goes to its own website. “Check rates” opens it on Booking.com through our partner Stay22, which pays us a commission if you book, at no extra cost to you.

The Old Harbour and Grandi: Harpa, the quays and a spa

West of downtown, the Old Harbour runs from Harpa, the glass concert hall, towards Grandi, the harbour district with restaurants and shops among the fish sheds. It is windier and more open than the old town.

Where to stay at the harbour

Hlemmur and Borgartún: the east side

Hlemmur, at the eastern end of Laugavegur, is the old bus terminus, and Borgartún, north of it, is the business district, with the shore path and the Sun Voyager sculpture on the sea side. The hotels are larger and a longer walk from the bars, and two include breakfast.

Where to stay around Hlemmur

The Golden Circle side: Þingvellir and the dark sky

Two hotels sit on the Golden Circle side, away from Reykjavík’s glow and reached by car. Neither can promise a sighting.

A frozen waterfall of white ice falling between dark rocky cliffs onto ice-covered boulders in cold light
A frozen waterfall in winter; titled by the photographer as Öxarárfoss in Þingvellir National Park. Photo: Faron Brazis / Pexels

Where to stay on the Golden Circle

The South Coast: farther from the lights

On the South Coast, towards Hella and Vík, the drive from Reykjavík is longer. The hotels do not state the distance, so check the route and road conditions on umferdin.is before you set out.

A bright green aurora arcing over a snow-edged gravel road that runs straight to the horizon across a flat, dark landscape, with a faint glow of lights far away
Aurora over a snowy Icelandic road; the photographer's listing does not name the place. Photo: Gylfi Gylfason / Pexels

Where to stay on the South Coast

Dark basalt sea stacks rising from foaming water beside a black sand beach, with a dark cliff on the left under a grey, overcast sky
Black sand and sea stacks on the South Coast, titled by the photographer as Reynisfjara Beach. Photo: Alex Sever / Pexels

How to book Reykjavík for the northern lights

All 12 at a glance

Hotel Area Tier Best for Watch out for
Hotel Borg Downtown 101 Splurge History on the central square Spa promised on direct bookings
Hotel Leifur Eiríksson Hallgrímskirkja Good value The church at the door No lift
Loft HI Hostel Downtown 101 Budget The cheapest central bed Lively at weekends
The Reykjavik EDITION Old Harbour Splurge The harbour and Harpa Price
Grandi by Center Hotels Grandi Comfortable A spa by the harbour A walk to Laugavegur
Storm Hotel Borgartún Good value Breakfast and parking Outside 101
Fosshotel Reykjavík Borgartún Comfortable A high-floor view Conference scale
KEX Hostel Skúlagata Budget A social base with a kitchen Shared bathrooms in the hostel
ION Adventure Hotel Golden Circle Splurge A design hotel by Þingvellir Route 435 closed in winter
Hotel Grímsborgir Golden Circle Comfortable A hot tub at your room Ask what the wake-up covers
Hotel Rangá South Coast Splurge An aurora wake-up call and observatory Price, and the weather
Hotel Katla South Coast Comfortable A hot tub near Vík No wake-up call listed

Before you go

Frequently asked questions

When is the northern lights season in Reykjavik?

Visit Iceland puts the season at September to April. The Icelandic Met Office says the aurora needs dark and partly clear skies, so cloud matters as much as activity. Visit Iceland adds that on a clear, active night the lights are often visible from Reykjavik too, and that there are no guarantees you will see them.

Can you see the northern lights from Reykjavik itself?

Sometimes. Visit Iceland says they are often visible from the capital on a clear, active night, and that heading away from city lights helps, particularly when the aurora is faint. Visit Reykjavik names Grótta lighthouse, Öskjuhlíð and Heiðmörk among the darker places nearby; the path to Grótta is only usable at low tide.

Which Reykjavik hotels or countryside hotels offer a northern lights wake-up call?

Hotel Rangá says guests press a button on the in-room phone and are called whenever the lights should appear, and has offered the service since 2005. Hotel Grímsborgir lists a northern lights wake-up call among its room amenities. Hotel Katla's page does not list one, so ask the hotel what its service covers; none can promise a sighting.

How much is the accommodation tax in Iceland?

Skatturinn, the Icelandic tax authority, gives 800 ISK per sold accommodation unit per night at hotels, guesthouses and other lodgings with category II to IV licences, and 400 ISK at campsites and pitches. The unit is generally the room, not the guest; in a hostel that lets each bed separately, each bed is a unit. VAT on hotel rooms is 11%.

How do I get from Keflavik Airport to Reykjavik?

Flybus to the BSÍ terminal costs 3,999 ISK one way for adults and takes about 45 minutes; Flybus to hotel costs 5,299 ISK. Strætó route 55 costs 2,400 ISK for adults to Reykjavik, with twelve daily departures, and since 1 October 2026 it stops at the KEF Arrivals stop at the terminal. Visit Reykjavik gives a taxi ride as about 45 to 50 minutes.

Is it safe to drive to a countryside aurora hotel in winter?

Safetravel advises checking that a rental car has winter equipment such as winter tyres, keeping front and rear lights on at all times, allowing extra time because daylight is limited, and checking umferdin.is for road conditions and the Met Office for weather at least once a day. Call 112 in an emergency, and if conditions worsen, wait somewhere safe. ION Adventure Hotel says route 435 is closed from October to May and tells guests to take road 36 and then road 360.

Sources & further reading

Prices, fares and hotel terms change. Every detail here was checked on 2 November 2026; confirm rates, room types and cancellation terms with the hotel before booking. The Icelandic Met Office pages were read from an archived copy dated 26 December 2025. These are researched picks, not reviews. This article contains affiliate links: hotel rates on Booking.com and other booking sites through Stay22, and tours, transfers and eSIMs through our partners; if you book through them we may earn a commission at no extra cost to you. No hotel pays to be included.

← Back to Gently Yonder

Keep reading on Gently Yonder