The Price of Happiness by Country in 2026
Getting paid for an honest day’s work is its own satisfaction. But can money itself buy happiness?
According to a Purdue University study on income and happiness, increases in income do lead to increases in “subjective well-being.” But there is a point of “income satiation,” after which further “increases in income no longer produce meaningful benefits to happiness” (this is essentially where happiness is calculated in terms of life satisfaction, positive feelings, and negative feelings). This income level — the price of happiness — differs depending on where you live.1
In our new report, the Remitly team has analyzed Purdue’s figures and adjusted them to account for local purchasing power and inflation. We found that in the U.S., happiness levels off at an annual income of $134,827 USD per individual. That’s nearly a fifth more than the price of happiness in Canada ($113,755 USD) and twice that of China ($71,201 USD).
Read on to find out how these figures vary around the world and from city to city in the U.S., UK, Australia, Canada and Spain.
According to a Purdue University study on income and happiness, increases in income do lead to increases in “subjective well-being.” But there is a point of “income satiation,” after which further “increases in income no longer produce meaningful benefits to happiness” (this is essentially where happiness is calculated in terms of life satisfaction, positive feelings, and negative feelings). This income level — the price of happiness — differs depending on where you live.1
In our new report, the Remitly team has analyzed Purdue’s figures and adjusted them to account for local purchasing power and inflation. We found that in the U.S., happiness levels off at an annual income of $134,827 USD per individual. That’s nearly a fifth more than the price of happiness in Canada ($113,755 USD) and twice that of China ($71,201 USD).
Read on to find out how these figures vary around the world and from city to city in the U.S., UK, Australia, Canada and Spain.
Key findings
- In the U.S., happiness costs an estimated $134,827 USD, the amount beyond which further increases to annual income have no effect on a person’s “life evaluation,” based on analysis of data from Purdue University’s income satiation study.
- New York City is the U.S. city with the highest price of happiness ($195,969 USD).
- Honolulu has the second-highest price of happiness ($192,441).
- The country with the highest price of happiness is Iceland ($163,579 USD).
- The country with the lowest price of happiness is Ethiopia ($10,176 USD).
- The price of happiness in the UK is £89,959 GBP ($120,248 USD).
- Slovenia is the only country in our study where the price of happiness ($36,769 USD) is less than the average salary ($42,754 USD).
European countries have highest price of happiness — led by Iceland
First, we found the price of happiness in every country — the income point after which further increases no longer improve a person's self-reported "subjective well-being" score.
'Happiness' is based on three factors. The first is life evaluation, for which participants score their present level of satisfaction between 0 ('worst possible life') and 10 ('best possible life'). The second and third are based on whether the participant reports having a positive or negative emotional state for much of the previous day.
Of the 123 countries with available data, 18 have a six-figure price of happiness in U.S. dollars, taking into account local purchasing power. These 18 include 14 European countries, plus the U.S., Canada, Australia and New Zealand. Iceland has the highest price of happiness, at $163,579 USD.
'Happiness' is based on three factors. The first is life evaluation, for which participants score their present level of satisfaction between 0 ('worst possible life') and 10 ('best possible life'). The second and third are based on whether the participant reports having a positive or negative emotional state for much of the previous day.
Of the 123 countries with available data, 18 have a six-figure price of happiness in U.S. dollars, taking into account local purchasing power. These 18 include 14 European countries, plus the U.S., Canada, Australia and New Zealand. Iceland has the highest price of happiness, at $163,579 USD.
Despite Iceland's high price of happiness, the Nordic island ranked second in the 2025 World Happiness Report2, which is compiled by the University of Oxford, alongside Gallup and the UN Sustainable Development Solutions Network. Iceland's rising happiness levels align with world-leading social support scores.
"Where you have gender equality, the social, economic and political aspects tend to be more stable and better for people and the natural surroundings," author Hrund Gunnsteinsdóttir told the BBC. "In countries with greater gender equality, people are healthier, happier and have better wellbeing."3
The ten countries with the lowest price of happiness are spread across Africa and Latin America. Ethiopia has the lowest price of happiness, at $10,176 USD. However, when considering this figure against the average annual income ($777 USD), Ethiopians are among the least likely to reach their level of "income satiation" (see below).
"Where you have gender equality, the social, economic and political aspects tend to be more stable and better for people and the natural surroundings," author Hrund Gunnsteinsdóttir told the BBC. "In countries with greater gender equality, people are healthier, happier and have better wellbeing."3
The ten countries with the lowest price of happiness are spread across Africa and Latin America. Ethiopia has the lowest price of happiness, at $10,176 USD. However, when considering this figure against the average annual income ($777 USD), Ethiopians are among the least likely to reach their level of "income satiation" (see below).
Slovenia is the only country where incomes cover the “price of happiness”
Next in our global rundown, we compared the point of income satiation in every country with the average local income. Below are the 50 countries where the average salary comes closest to meeting the price of happiness.
In fact, there's one country where income commonly exceeds the price of happiness: Slovenia, where the average income of $42,754 USD is 16.3% higher than the point at which increasing life evaluation levels out ($36,769 USD).
In fact, there's one country where income commonly exceeds the price of happiness: Slovenia, where the average income of $42,754 USD is 16.3% higher than the point at which increasing life evaluation levels out ($36,769 USD).
Slovenia is one of three neighboring Eastern European countries that uses a set of well-being indicators, including happiness, when making policy decisions, coordinating "separate targets (e.g., employment and production emissions) in an integrated system to account for tradeoffs, synergies, and their ultimate impacts on well-being."4 They're a rare country that uses things like happiness to make society-altering decisions, which may be contributing to the favorable salary-to-happiness ratio.
The other two neighboring countries — Latvia (84.7%) and Poland (74.5%) — are also among the 11 countries with the most amenable salary-to-price-of-happiness ratios.
The other two neighboring countries — Latvia (84.7%) and Poland (74.5%) — are also among the 11 countries with the most amenable salary-to-price-of-happiness ratios.
The price of happiness in America is $135K — but in NYC it's $196K
The price of happiness across America is $134,827, which is the fifth-highest of any country in our analysis. But this figure varies from location to location — so we also identified the price of happiness in 50 of the most populous U.S. cities.
New York City has the highest income satiation point, with life evaluation scores leveling off after income reaches $195,969 USD per year. One 2025 report pegged New York as the "World's Wealthiest City," noting that it is home to 384,500 millionaires5. But New York rent is around 149% of the national average6, and wage inequality between the top and bottom earners is rising in New York City even while it's falling elsewhere in the country,7 putting the price of happiness out of range for most inhabitants.
New York City has the highest income satiation point, with life evaluation scores leveling off after income reaches $195,969 USD per year. One 2025 report pegged New York as the "World's Wealthiest City," noting that it is home to 384,500 millionaires5. But New York rent is around 149% of the national average6, and wage inequality between the top and bottom earners is rising in New York City even while it's falling elsewhere in the country,7 putting the price of happiness out of range for most inhabitants.
Of the 50 major cities we analyzed, Cincinnati, Ohio, has the lowest price of happiness. Locals hit income satiation at $122,480 USD per year, over one-third (37.5%) less than in New York. There are also three Texas cities among the ten with the lowest price of happiness: Austin ($130,123 USD), Houston ($125,224 USD) and San Antonio ($123,656 USD).
London is the UK's most expensive major city to find happiness — Sheffield is the cheapest
Next, we identified the price of happiness in 23 UK cities.
London is the most expensive place to reach income satiation, with a price tag of £116,097 GBP ($155,187 USD) — 14.8% more than second-placed Oxford (£101,104 GBP/$135,146 USD). The five UK cities with the highest price of happiness are all in the South or Southeast of England.
London is the most expensive place to reach income satiation, with a price tag of £116,097 GBP ($155,187 USD) — 14.8% more than second-placed Oxford (£101,104 GBP/$135,146 USD). The five UK cities with the highest price of happiness are all in the South or Southeast of England.
A report from global think tank the Institute for Quality of Life recently ranked London as the 48th happiest city in the world8 — right below Edinburgh, which is the city with the highest price of happiness outside of the south (£96,858 GBP/$129,470 USD). A separate survey from RightMove found two London areas (Richmond-upon-Thames and Camden) among the UK's three happiest places to live9.
However, London is expensive, and income inequality is severe. The Trust for London found that a single adult needs an income of £54.4k GBP for a decent standard of living in London, compared to £30.5k GBP for the rest of urban UK, and that "four million people in the capital are living in households without enough for a basic standard of living [including] half of London's children, and nine in ten single-parent households."10 It should be noted that they measured acceptable standards of living and not happiness.
However, London is expensive, and income inequality is severe. The Trust for London found that a single adult needs an income of £54.4k GBP for a decent standard of living in London, compared to £30.5k GBP for the rest of urban UK, and that "four million people in the capital are living in households without enough for a basic standard of living [including] half of London's children, and nine in ten single-parent households."10 It should be noted that they measured acceptable standards of living and not happiness.
Brisbane among Australian cities with lowest price of happiness despite housing crisis
Among seven major Australian cities, we found Sydney ($255,524 AUD/$178,407 USD) to have the highest price of happiness. The income satiation point in Sydney is 5.5% higher than in second-placed Canberra ($242,254 AUD/$169,142 USD) and 15.9% higher than in Brisbane ($220,478 AUD/$153,938 USD).
A study by SGS Economics and Planning found the Greater Sydney area to have the second-highest levels of well-being after the Australian Capital Territory (encompassing Canberra and its surroundings)11. Sydney scored particularly well in Income & Wealth and Health metrics.
Notably, Brisbane — the cheapest of these seven cities for happiness — had the next highest levels of well-being. However, a boom in immigration (opens in new window) from other Australian states to Brisbane has contributed to rising property prices and an ongoing housing crisis.
Notably, Brisbane — the cheapest of these seven cities for happiness — had the next highest levels of well-being. However, a boom in immigration (opens in new window) from other Australian states to Brisbane has contributed to rising property prices and an ongoing housing crisis.
Victoria and Vancouver have Canada's highest price of happiness
Victoria has the highest price of happiness of Canada's major cities ($169,951 CAD/$124,047 USD), although it's less than 2% higher than that in Vancouver ($166,982 CAD/$121,881 USD) or Toronto ($166,982 CAD/$121,881 USD). The living wage12 in Victoria has risen in recent years to keep up with soaring costs of living.
The major Canadian city with the lowest price of happiness is Kingston ($140,513 CAD/$102,560 USD). This is despite Kingston becoming Canada's fourth-most-expensive13 city in which to rent.
The price of happiness in Madrid is €89,759 EUR
Finally, we looked at the price of happiness across 12 of Spain's major cities.
Madrid (€89,759 EUR/$102,190 USD), Barcelona (€88,562 EUR/$100,828 USD) and Palma de Mallorca (€88,263 EUR/$100,487 USD) are neck and neck for the highest price of happiness. These account for three of the four most expensive Spanish cities in which to rent14.
Of these three cities, only Barcelona featured among Spain's 10 happiest cities in a recent data-driven study (rather than a survey) from rental company Sonneil15. Barcelona's urban services and many sunny days are what drive up its score.
Madrid (€89,759 EUR/$102,190 USD), Barcelona (€88,562 EUR/$100,828 USD) and Palma de Mallorca (€88,263 EUR/$100,487 USD) are neck and neck for the highest price of happiness. These account for three of the four most expensive Spanish cities in which to rent14.
Of these three cities, only Barcelona featured among Spain's 10 happiest cities in a recent data-driven study (rather than a survey) from rental company Sonneil15. Barcelona's urban services and many sunny days are what drive up its score.
Meanwhile, Granada has the lowest price of happiness. Granada's income satiation point of €73,153 EUR ($83,285 USD) is 18.5% lower than that of Madrid. The climate, history, architecture and nightlife are among factors that raise the quality of life in Granada, and home prices are reasonable by national standards — even if they can be relatively high compared to the surrounding Andalusian region. Interested in moving to Spain (opens in new window)? See our analysis of the easiest places to buy property (opens in new window) in the country.
How income can support well-being
Personal happiness may depend on a range of personal and environmental considerations, but an income level that provides a sense of safety (opens in new window), freedom and control over your destiny is a baseline factor.
Indeed, the results from a Universal Basic Income (UBI) trial in Finland showed that although providing unemployed participants with a modest monthly cash injection only slightly improved their chances of finding employment, the contribution "significantly boosted multiple measures of the recipients' well-being, and reinforced positive individual and societal feedback loops."16
Meanwhile, the Purdue study on which our data is based also noted that factors, such as level of education, also affect the price of happiness, although for this study we focused on location. And the authors also noted the possible effect on the data of the hedonic treadmill — "the well-studied phenomenon that happiness levels tend to return to a relatively constant baseline amidst various life events and circumstances."1 And it is important to consider that the price of happiness is a comparison of different groups of people, rather than how an individual feels after getting a raise.
If the price of happiness in every country except Slovenia is higher than the average income, it indicates there is work to be done to align the labor that people do and the material rewards that they reap in return — which in turn may feed into individual well-being and knock-on benefits for places and communities.
Indeed, the results from a Universal Basic Income (UBI) trial in Finland showed that although providing unemployed participants with a modest monthly cash injection only slightly improved their chances of finding employment, the contribution "significantly boosted multiple measures of the recipients' well-being, and reinforced positive individual and societal feedback loops."16
Meanwhile, the Purdue study on which our data is based also noted that factors, such as level of education, also affect the price of happiness, although for this study we focused on location. And the authors also noted the possible effect on the data of the hedonic treadmill — "the well-studied phenomenon that happiness levels tend to return to a relatively constant baseline amidst various life events and circumstances."1 And it is important to consider that the price of happiness is a comparison of different groups of people, rather than how an individual feels after getting a raise.
If the price of happiness in every country except Slovenia is higher than the average income, it indicates there is work to be done to align the labor that people do and the material rewards that they reap in return — which in turn may feed into individual well-being and knock-on benefits for places and communities.
Methodology
To determine each city and country's price of happiness, we reverse-engineered figures obtained from Purdue University's study into the relationship between happiness and income.
First, we recorded the satiation point for Life Evaluation (LE) in USD (U.S. dollars) for each world region. Life Evaluation is a metric from the World Gallup poll that measures how good an individual considers their life to be. The satiation point of LE refers to the income point at which any further increase has no effect on an individual's happiness.
The figures in the study grouped countries into world regions and quoted the satiation points relative to a U.S. resident's purchasing power. So, to discover the local price of happiness by country, we converted these figures back to local currencies using country-specific Purchasing Power Ratios sourced from the International Monetary Fund. Purchasing power ratios represent the number of units of local currency that are equal to the buying power of one U.S. dollar in the United States.
Finally, we converted (on March 25th 2026) local currencies back into U.S. dollars (for comparison purposes) using Remitly's Currency Converter (opens in new window) and accounted for inflation since the publication date of Purdue University's study. Due to fluctuating exchange rates, currency value may not be the same today as it was when the initial analysis was conducted.
To calculate the price of happiness by city, we adjusted the national average price of happiness according to the cost of living by city in Numbeo's index17.
In addition, we calculated how close the average wage (from the ILO18) in every country is to the price of happiness.
Data is correct as of March 2026.
References
First, we recorded the satiation point for Life Evaluation (LE) in USD (U.S. dollars) for each world region. Life Evaluation is a metric from the World Gallup poll that measures how good an individual considers their life to be. The satiation point of LE refers to the income point at which any further increase has no effect on an individual's happiness.
The figures in the study grouped countries into world regions and quoted the satiation points relative to a U.S. resident's purchasing power. So, to discover the local price of happiness by country, we converted these figures back to local currencies using country-specific Purchasing Power Ratios sourced from the International Monetary Fund. Purchasing power ratios represent the number of units of local currency that are equal to the buying power of one U.S. dollar in the United States.
Finally, we converted (on March 25th 2026) local currencies back into U.S. dollars (for comparison purposes) using Remitly's Currency Converter (opens in new window) and accounted for inflation since the publication date of Purdue University's study. Due to fluctuating exchange rates, currency value may not be the same today as it was when the initial analysis was conducted.
To calculate the price of happiness by city, we adjusted the national average price of happiness according to the cost of living by city in Numbeo's index17.
In addition, we calculated how close the average wage (from the ILO18) in every country is to the price of happiness.
Data is correct as of March 2026.
References
- Nature (2018). Happiness, income satiation and turning points around the world. https://www.nature.com/articles/s41562-017-0277-0.epdf (opens in new window)
- World Happiness Report (2025). The World Happiness Report dashboard. https://data.worldhappiness.report/table (opens in new window)
- BBC Travel. Why Icelanders are happier than ever. https://www.bbc.co.uk/travel/article/20250411-why-icelanders-are-happier-than-ever (opens in new window)
- Cambridge University Press (2025). The Happiness Revolution in Europe. https://www.cambridge.org/core/elements/happiness-revolution-in-europe/3D454C1B35A7B654B7BC73056BEB0BAA (opens in new window)
- Henley & Partners (2025). Top 50 Cities for Millionaires. https://www.henleyglobal.com/publications/wealthiest-cities-2025/top-50-cities-millionaires (opens in new window)
- Architectural Digest (2026). These Are the 10 Most Expensive Cities in the World. https://www.architecturaldigest.com/story/the-most-expensive-cities-in-the-world-see-the-top-10 (opens in new window)
- Center for New York City Affairs (2025). While the Top Three Percent of Wage Earners Get Richer, New York City's Low Wage Workers Risk Greater Poverty. https://www.centernyc.org/reports-briefs/while-the-top-three-percent-of-wage-earners-get-richer-new-york-citys-low-wage-workers-risk-greater-poverty (opens in new window)
- Institute for Quality of Life (2026). The 2026 Happy City Index. https://happy-city-index.com/ (opens in new window)
- Rightmove (2025). Where is the happiest place to live? https://www.rightmove.co.uk/news/happy-at-home/ (opens in new window)
- Trust for London (2025). How much does it cost to live in London? A Minimum Income Standard 2025. https://trustforlondon.org.uk/research/minimum-income-standard-for-london-2025/ (opens in new window)
- SGS Economics and Planning (2024). SGS Cities & Regions Wellbeing Index. https://sgs-assets.spicyweb.net.au/main/SGS-Economics-and-Planning_SGS-Cities-and-Regions-Wellbeing-Index_2024_Website.pdf (opens in new window)
- Living Wage BC (2025). Local Briefing: Greater Victoria. https://bcpolicy.ca/wp-content/uploads/2025/11/2025-lw-Greater-Victoria.pdf (opens in new window)
- The Queen's Journal (2026). Kingston can't turn a blind eye to its rental crisis. https://www.queensjournal.ca/kingston-cant-turn-a-blind-eye-to-its-rental-crisis/ (opens in new window)
- Idealista (2025). The cities with the most expensive rent in Spain. https://www.idealista.com/en/news/property-for-rent-in-spain/2025/02/27/828608-these-are-the-cities-with-the-most-expensive-rent-in-spain (opens in new window)
- Idealista (2026). The happiest place in Spain, according to the Happy Index. https://www.idealista.com/en/news/lifestyle-in-spain/2026/03/24/890138-the-happiest-place-in-spain-according-to-the-happy-index (opens in new window)
- McKinsey & Company (2020). An experiment to inform universal basic income. https://www.mckinsey.com/industries/social-sector/our-insights/an-experiment-to-inform-universal-basic-income (opens in new window)
- Numbeo (2026). Current Cost of Living Index. https://www.numbeo.com/cost-of-living/rankings_current.jsp (opens in new window)
- International Labour Organization (2026). Statistics on earnings and labour income. https://ilostat.ilo.org/topics/wages/ (opens in new window)
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