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These are the world’s happiest cities for 2026 – and seven are in Australia

The 2026 Happy City Index has dropped – and one historic Victorian city even made the top 20

Melissa Woodley
Written by
Melissa Woodley
Editor, Time Out Australia
Couple outdoors near tiny home
Photograph: Visit Victoria | Unyoked
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There’s no doubt that happiness is contagious. When you spend time with people who are like human forms of sunshine, the world somehow seems a little brighter. Imagine, then, how good it feels to live in one of the world's happiest cities?

The 2026 Happy City Index has just been released, celebrating the 251 most joyful cities globally. This year, seven Aussie cities cracked the list, with a surprise regional Victorian town even making the top 20.

Developed by the Institute for Quality of Life, the annual index evaluates almost 1,000 cities across 64 indicators. These are grouped into six themes – citizens, governance, environment, economy, health and mobility – which the researchers believe are the hallmarks that directly impact human happiness.

Ballarat
Photograph: Supplied | Visit Victoria

Ballarat has plenty to smile about right now: it was crowned Australia’s happiest city for 2026, landing in 16th place globally. The historic Victorian hub scored particularly well in the economy and environment categories, boasting more than double the average amount of green space per person and an above-average GDP per capita. With an internal migration rate 80 per cent higher than the global average, it’s clear that people are moving regionally in search of a happier life.

Ballarat was one of only three non-European cities featured in the top 20, landing just behind Oslo and The Hague. Copenhagen, Helsinki and Geneva claimed the top three spots, known for their balance of sustainability, impressive public infrastructure and overall liveability.

Sunsetting over the Hunter River and the town of Morpeth.
Photograph: Newy Digital | Maitland City Council

The charming NSW city of Maitland was the only other Aussie city to crack the 2026 Happy City Index top 50, claiming 35th place. Three of our capitals also made a showing, with Adelaide in 71st place, Melbourne in 108th place and Hobart in 132nd place. Elsewhere, Geelong landed 122nd and Rockhampton rounded out the Aussie entries at 168th. You can see the full global ranking here.

The happiest cities in the world for 2026:

  1. Copenhagen, Denmark
  2. Helsinki, Finland
  3. Geneva, Switzerland
  4. Uppsala, Sweden
  5. Tokyo, Japan
  6. Trondheim, Norway
  7. Bern, Switzerland
  8. Malmö, Sweden
  9. Munich, Germany
  10. Aarhus, Denmark
  11. Zurich, Switzerland
  12. Barcelona, Spain
  13. Espoo, Finland
  14. Oslo, Norway
  15. The Hague, Netherlands
  16. Ballarat, Australia
  17. Aalborg, Denmark
  18. Yokohama, Japan
  19. Lugano, Switzerland
  20. Reykjavik, Iceland

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