As of 2024, the top 1% in Iceland earned 7.97% of total national income, while the bottom 50% received just 25.72%. Iceland’s income inequality has remained relatively stable since 1980, when the top 1% share was 7.68%.
Key Income Distribution Metrics for Iceland in 2024
In 2024, income in Iceland was distributed as follows: the wealthiest 1% of the population captured 7.97% of total national income, which is significantly lower than the global average of 16.17%. Meanwhile, the bottom half of earners received 25.72% of income, significantly higher than the global average of 14.97%.
| Metric | Iceland | Global Average |
|---|---|---|
| Top 1% Income Share | 7.97% | 16.17% |
| Top 10% Income Share | 27.95% | 45.21% |
| Bottom 50% Income Share | 25.72% | 14.97% |
How Has Income Inequality Changed in Iceland?
Top 1% Income Share Trend (1980-2024)
The share of income going to Iceland’s top 1% has remained relatively stable over the past 44 years. In 1980, the top 1% captured 7.68% of national income. By 2024, this figure had risen by 0.29 percentage points to 7.97%.
Top 10% vs Bottom 50% Income Gap Over Time
The income gap between the top 10% and bottom 50% in Iceland has narrowed over this period. In 1980, the top 10% earned 29.92% while the bottom 50% received 22.28%. By 2024, these figures shifted to 27.95% and 25.72% respectively.
| Year | Top 1% | Top 10% | Bottom 50% | Gap (Top 10 – Bottom 50) |
|---|---|---|---|---|
| 1980 | 7.68% | 29.92% | 22.28% | 7.64 pp |
| 1986 | 7.68% | 29.93% | 22.27% | 7.66 pp |
| 1992 | 7.81% | 30.04% | 22.39% | 7.65 pp |
| 1998 | 7.94% | 30.41% | 21.93% | 8.48 pp |
| 2004 | 9.33% | 30.90% | 22.30% | 8.60 pp |
| 2010 | 5.62% | 26.83% | 24.55% | 2.28 pp |
| 2016 | 8.55% | 29.29% | 24.13% | 5.16 pp |
| 2022 | 7.94% | 27.97% | 25.69% | 2.28 pp |
How Iceland Compares Globally
Iceland vs Europe Average
Compared to other countries in Europe, Iceland’s top 1% income share of 7.97% is notably lower than the regional average of 10.86%. The bottom 50% in Iceland receives 25.72% of income, compared to the Europe average of 20.10%.
Where Iceland Ranks Among All Countries
- Top 1% income concentration: Iceland ranks 181st out of 184 countries (higher rank = more concentrated wealth at the top)
- Bottom 50% income share: Iceland ranks 1st out of 184 countries (higher rank = larger share for the bottom half)
Countries with similar income inequality levels to Iceland include Slovenia, Cyprus's wealth gap, income distribution in North Macedonia.
Frequently Asked Questions
What is the income share of the top 1% in Iceland?
As of 2024, the top 1% in Iceland earned 7.97% of total national income. This level of concentration is considered relatively low by international standards.
Is income inequality increasing or decreasing in Iceland?
Income inequality in Iceland has remained relatively stable since 1980. The top 1% income share moved from 7.68% in 1980 to 7.97% in 2024.
What percentage of income goes to the bottom 50% in Iceland?
In 2024, the bottom 50% of earners in Iceland received 25.72% of total national income. This compares with the top 10% who captured 27.95%.
Last updated: April 8, 2026
Data source: World Inequality Database (WID). This dataset covers income distribution metrics for 199 countries from 1980 to 2024.