The annual personal income in Iceland was 9.2 million ISK on average in 2023, or about 770 thousand ISK per month. That is a 10% increase form last year. When looking at price adjustment, the real increase is about 1.3%. The median of annual personal income was 7.6 million ISK or 636 thousand ISK per month, indicating that one-half of individuals had a total income under 636 thousand ISK per month. The increase in personal income was 11.3%, but when looking at price adjustment, the increase was 2.4%.
Employment income was 6.4 million ISK on average, capital income 1.0 million and other income 1.9 million ISK. Total income is the sum of employment income, capital income and other income.
Comparison of average personal income by age reveals the lowest personal income in the age group 16 to 19 years for the year 2023, or about 180 thousand ISK per month. In this context, it is worth pointing out that the personal income reflects the individual income. The highest personal income can be found in the age group 50 to 54 years, or 1,019 thousand ISK per month. The average personal income of people aged 67 and over was 715 thousand ISK.
The division of personal income into income from work, capital income and other income varies with age group. In most ages, income from work is the largest proportion of the personal income, with the exception of the age groups 67 years and older, where other income is the biggest part. Income from work includes all wages and other work-related payments, while other income includes unemployment benefits, social assistance and pensions or benefits.
About income statistics from tax returns
Statistics Iceland has published statistics on personal income for the period 1990 to 2023 by municipality, 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.