The annual personal income in Iceland was 6.9 million ISK on average in 2019 or 573 thousand ISK per month. The median of the annual personal income was 5.6 million ISK or 473 thousand ISK per month, an increase of 0.9%, compared with the previous year.
Comparison of average personal income by age reveals the lowest personal income in the age group 16 to 24 years for the year 2019, or about 231 thousand ISK per month (figure 2). In this context, it is worth pointing out that the personal income reflects the individual income. Additionally, the youngest age group usually still lives in their parental home. The highest personal income can be found in the age group 55 to 74 years, or 669 thousand ISK per month.
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 2019 by municipality, age and sex. In this release breakdown has been increased by additional age groups. 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.