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Getting around in Iceland?

Are there cheap local buses or taxis from REK into town? The web keeps showing places charging $40 USD per person each way transfer fees? None of the moderate or lower hotels seem to have free shuttles.

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Be careful using the REK code for Keflavik airport. Reykjavik has two airports: Keflavik (KEF) for international flights which is way out of town, and Reykjavik City Airport (RKV) for domestic flights and flights to Greenland and the Faroes. Using REK might have someone thinking you mean the City Airport which is in town and close to everything.