In 2014 the total personal income in Iceland was 5.1 million ISK on average per year which was an increase of 6.6% from 2013. Income from work, including salaries and other work related remuneration, was 3.6 million ISK, an increase of 5.5 from 2013. Other income was on average approximately one million ISK in the year 2014 and average disposable income was 3.7 million ISK. Other income increased by 7.4% and disposable income by 6.7% from 2013.
Total income has increased of 58% from year 1990, in fixed prices year 2014. Disposable income and income from work show similar patterns of development during 1990 to 2014 except for the years 2003 to 2010 where disposable income is higher than income from work, peaking at year 2007. The difference between disposable income and income from work is mainly due to increased capital income.
Other income, including e.g. pension and benefits, rose steadily until year 2009 where a substantial increase occurred. The increase of other income in year 2009 is mainly due to the permit given to individuals to take out personal pension fund.
Men’s income is higher than women’s
In 2014, the highest average total personal income can be seen in the age group 45 – 50 years while the lowest is found in the age group 16-19 years. Total personal income increases by age up to the late forties, decreasing again in older age groups.
Men had larger income than women as men’s average income was 8.1 million ISK, while that of women was ISK 5.8 million ISK. The level of personal income peaks in late forties for both men and women.
More than half with total income under 400 thousand ISK per month in year 2014
The distribution of total personal income in the year 2014 shows that about half had income less than or equal to 4.8 million ISK per year or 400 thousand ISK per month on average. In the same year, 1% had 21.4 million ISK or more per year which equals 1.8 million ISK per month.
A substantial difference can be noted between the income of men and women in 2014 as 5% of men have income 13.1 million ISK and higher which equals approximately 1 million ISK per month while 5% of women have 8.5 million ISK per year or more, cf. table below.
| Distribution of total income and income from work by sex 2014 | ||||||
| Thus. ISK | Total annual income | Income from work | ||||
| Total | Men | Women | Total | Men | Women | |
| 10% | 1,282 | 1,327 | 1,247 | 763 | 802 | 728 |
| 20% | 2,310 | 2,375 | 2,203 | 1,509 | 1,659 | 1,396 |
| 30% | 2,820 | 3,071 | 2,672 | 2,298 | 2,672 | 2,046 |
| 40% | 3,347 | 3,770 | 3,089 | 3,143 | 3,720 | 2,742 |
| 50% | 3,997 | 4,631 | 3,582 | 3,943 | 4,655 | 3,385 |
| 60% | 4,799 | 5,598 | 4,199 | 4,760 | 5,555 | 4,064 |
| 70% | 5,732 | 6,675 | 4,970 | 5,618 | 6,538 | 4,805 |
| 80% | 6,960 | 8,131 | 5,905 | 6,737 | 7,884 | 5,625 |
| 90% | 9,195 | 10,828 | 7,497 | 8,771 | 10,273 | 6,995 |
| 95% | 11,864 | 14,244 | 9,261 | 11,042 | 13,101 | 8,459 |
| 99% | 21,401 | 24,965 | 15,559 | 18,400 | 21,497 | 12,609 |
| Mean | 5,081 | 5,851 | 4,333 | 4,580 | 5,350 | 3,762 |
About income statistics from tax returns
Statistics Iceland publishes information on income for the period 1990 to 2014 by age groups. This comprises total income as well as income from earnings, capital gains and disposable income including other income and taxes. Dispersion is presented in percentiles as well as 95% and 99% limits. Results are based on individuals’ tax returns.