Most foreign visitors to Iceland will tell you it's expensive. From the cost of accomodation and tours down to what you pay for a cup of coffee and everything in between. If you've heard the tales but are still set on going, you'll be pleased to learn that ,,service fees" (which is not tips !) are always included in the bill. This applies to everything. Restaurants, taxis, tour guides, café's, room name it. What you see (the bill) is what you pay. Tipping is not compulsary, but like everywhere in the world, appreciated.

If you want to tip anyway, there's nothing stopping you from doing so. Icelanders are as a whole a fairly well travelled lot themselves and they are familiar with the concept of tipping. They will almost always accept tips based on that. Most will just accept it and thank you.