Pirate lawmaker Birgitta Jonsdottir said the results were in line with the party's own prediction of between 12 and 15 percent - up from the 5 percent it secured in 2013.
With roughly a third of votes counted from Saturday's election, the Independence Party had about 30 percent of ballots and the Pirates just under 14 percent, putting them in third place behind the Left-Green movement.
The Independence party said it will now try to form the next government.
Current Prime Minister Sigurdur Ingi Johannsson, who resigned on Sunday, said it would be "natural" for the president to look to the Independence Party.
But each of the polls, conducted by the University of Iceland, research company MMR and Gallup, indicate the incumbent conservative coalition government will probably be voted out.
REYKJAVIK, Iceland (AP) - There was no Pirate takeover, but the upstart party managed to make waves in Iceland.
Like Spain's Podemos or the movement behind Bernie Sanders in the USA presidential race, it drew in throngs of mostly young supporters fed up with the status quo.
"I can not deny that if the results stay this way.it would be natural that we are a leading party in the next government", Benediktsson said.
The Pirates - founded less than four years ago as a protest movement against global copyright laws, and whose election campaign is partly crowdfunded - have 21 per cent in a Morgunbladid poll published on Friday.
Wiinifred Ajewole reports that Iceland's anti-establishment Pirate Party is in a tight race to become the largest party in parliament. "We can sense that the times are a-changing", said Ms Jonsdottir after casting her vote, quoting American singer-songwriter Bob Dylan's anthem of civil rights and Vietnam War protests.
He told a news conference that the move was in line with the constitution, which provides for him to remain in office until a new government is established.
With a combined 29 seats, the coalition is now three short of a majority in parliament.
The election was triggered by the resignation of the former prime minister, Sigmundur Davið Gunnlaugsson, from the Progressive party, who became the first major casualty of the Panama Papers in April after the leaked legal documents revealed he and his wife had millions stashed offshore.
The centre Regeneration Party, which could be the kingmakers in the election, garnered seven seats in the Icelandic parliament.
It's a worse result for the Pirates than some polls suggested, and a better performance than predicted for the Independents, who have governed in coalition since 2013.
The Pirate Party hasn't ruled out forming a coalition government with left-wing and centrist parties, but previously said it was unlikely they'd join forces with the Independence Party. "We are an innovative party that is trying new methods, and we took a lot of risks in order to stay true to ourselves".
Fuelled by a tourism boom, Iceland has recovered from its banking meltdown and economic growth this year is expected to hit 4.3 percent.
Tesla said that is glass tiled solar roof panels are more durable than the other conventional solar roof panels available. The solar roofs , at a first glance was unnoticeable until Musk had taken to the stage and pointed them out.
"It is clearly the desire of the US and Iraqi governments to eliminate collateral damage to the civilian population of Mosul". During an interview with ABC's George Stephanopoulos, the Donald said he could teach the retired U.S.
Militia commanders have said that their forces will not enter Mosul but will instead focus on surrounding towns like Tel Afar. The militias have been accused of systematic abuses against Sunnis, whom the militias view as sympathizers of Islamic State.
Mesches and Jolene then entered a loving embrace as the two fell to the floor while Jolene happily jumped about the room. You can see what appears to be pure shock and joy as she sees the living, breathing, giant version of her favorite toy.
Hillary Clinton backed out of a 2015 foundation event in Morocco, for example, after that country's king pledged $12 million. Hillary Clinton has said job one after she and her husband left the White House in 1997 was making money.
Duterte says: " China has been a friend of the Philippines and the roots of our bonds are very deep and not easily severed". On Friday, White House spokesman Josh Earnest described Duterte's comments as "personal", "offensive" and "confusing".
Earlier this year, Comey closed the yearlong investigation without filing any charges against Clinton and her associates. FBI investigators will check those emails to see whether any of them contained classified material, the letter stated.
With Jamaal Charles still working his way back from his torn ACL in 2015, Kansas City's depth at running back is being tested. While Luck went down twice, as he has in every game this season, the franchise quarterback took only seven hits.
Taking the podium, Obama hailed Clinton "for her leadership, for her courage and for what she is going to do for this country". Michelle Obama's approval ratings actually increased by 6 percentage points after her Democratic National Convention speech.
Alabama's senior senator said the latest revelations are an indication of an "incomplete investigation" by the FBI. The FBI "cannot yet assess whether or not this material may be significant", Comey told the committee chairmen.
Trump, Clinton in the Home Stretch
Clinton maintains a staff of more than 800, and has spent more on advertising than Trump has every single week of the race. And Trump himself has contributed just over half the $100 million he pledged to help bankroll his own campaign.
Notre Dame game won't be Catholics vs. Convicts
After two weeks of picking against the Irish, I have a feeling they're due - just as Stanford was two weeks ago in South Bend . It was Murphy's Law in South Bend for the Hurricanes. "You have to come out with a little more control", McGlinchey said.
Guardiola: I'll quit City if..
We could have scored goals, we had the same amount of possession - and nearly the same amount of goalscoring opportunities. Old Trafford: Manchester City manager Pep Guardiola says he would rather quit than change his footballing philosophy.
Greens wants new Ross Sea zone policed
The 25-member commission which reached the proposal includes the United States, China, Russia and the European Union. Scientists believe that the marine park can be a platform for a deeper understanding of climate change impacts.
Ex-Bill Clinton aide memo roils wife's campaign over ethics
Band is co-founder of global PR consulting firm Teneo and worked as Bill Clinton's personal assistant during his presidency. The memo shows examples of companies paying Bill Clinton directly when they were also donors to the Foundation .
Syrian rebels launch Aleppo offensive to break siege
Iran has been providing military advisory assistance to the Syrian government in its campaign against terrorism. Since March 2011, Syria has been hit by militancy it blames on some Western states and their regional allies.
Bus passengers saved by 'hero' taxi driver
A Muslim bus driver died in Brisbane, Australia , after a passenger threw an "item" which set him on fire, police said on Friday. Mr Alisher was an enthusiastic singer and hobby film-maker. "Today when I heard I am very disappointed, I left my job", he said.