Total income in 2016 was 5.9 million ISK on average, an increase of 9.3% from 2015. Monthly total income was 493 thousand ISK. At the same time the median total income was 4.6 million ISK or 381 thousand ISK monthly which is an increase of 6.5% between years.
Total income comprises income from work, capital income and other income. Of these, income from work weighs most, followed by other income and then capital income.
Average total income of age groups in relation to average income of all has varied over time. The youngest and the oldest age groups have been below the average income. However, the prospects of the elderly have been improving compared with the rest while the prospects for people under 30 have declined. This may partially be explained by more people studying, especially in universities.
The average total income of men and women in all age groups has improved since 1990 in current prices. In 1990, the income in the age group 40-44 was highest for both genders, but was highest for 45-49 year olds in 2016. In general, the older age groups have proportionally higher income in 2016 compared to 1990. At the same time the income of women has risen more sharply than that of men.
Income from work highest in Fjarðabyggð
The highest conditional median income from work in 2016 was 5.5 million ISK in Fjarðabyggð. Of the ten municipalities with the highest income in Iceland, Fjarðabyggð was the only municipality outside the south-west region. Considerable difference is between the income for men and women in each of these municipalities, especially in Fjarðabyggð and Akranes.
|Table 1. Highest conditional median of income from work of municipalities in 2016|
Of the ten most populous municipalities, Garðabær had the highest average total income or 7.4 million ISK. Thereof, capital income weighs 15% which is a considerably higher proportion than in the other nine municipalities. Second highest total income was in Fjarðabyggð or 6.2 million ISK.
About income statistics from tax returns
Statistics Iceland publishes information on income for the period 1990 to 2016 by municipalities, age and sex. This comprises total income as well as income from earnings, capital gains and disposable income including other income and taxes. Results are based on individuals’ tax returns.