The 1998 season of 1. deild karla was the 44th season of second-tier football in Iceland. [1]
| Pos | Team | Pld | W | D | L | GF | GA | GD | Pts | Promotion or relegation |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Breiðablik (C, P) | 18 | 13 | 0 | 5 | 44 | 14 | +30 | 39 | Promoted to 1999 Úrvalsdeild |
| 2 | Víkingur R. (P) | 18 | 10 | 4 | 4 | 30 | 18 | +12 | 34 | |
| 3 | FH | 18 | 10 | 3 | 5 | 30 | 15 | +15 | 33 | |
| 4 | Fylkir | 18 | 9 | 5 | 4 | 31 | 23 | +8 | 32 | |
| 5 | Skallagrímur | 18 | 7 | 5 | 6 | 37 | 36 | +1 | 26 | |
| 6 | Stjarnan | 18 | 7 | 5 | 6 | 18 | 18 | 0 | 26 | |
| 7 | KA | 18 | 7 | 4 | 7 | 24 | 28 | −4 | 25 | |
| 8 | KVA | 18 | 7 | 3 | 8 | 32 | 31 | +1 | 24 | |
| 9 | Þór A. (R) | 18 | 2 | 2 | 14 | 19 | 43 | −24 | 8 | Relegated to 1999 2. deild |
| 10 | HK (R) | 18 | 2 | 1 | 15 | 19 | 58 | −39 | 7 |
| Scorer | Goals | Team |
|---|---|---|
 Atli Kristjánsson | 14 | Breiðablik |
| Valdimar K. Sigurðsson | 11 | Skallagrímur |
| Hjörtur Hjartarson | 10 | Skallagrímur |
| Hörður Magnússon | 10 | FH |
| Höskuldur Þórhallsson | 10 | KA |
| Bjarki Pétursson | 9 | Breiðablik |
| Sumarliði Árnason | 9 | Víkingur R. |
 Boban Ristic | 8 | KVA |
| Brynjar Þór Gestsson | 5 | FH |
| Elmar Eiríksson | 5 | Þór A. |
| Guðmundur Sævarsson | 5 | FH |
| Ívar Sigurjónsson | 5 | Breiðablik |
| Ólafur Þórðarson | 5 | Fylkir |
| Steindór Elísson | 5 | HK |
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