July 8, 2026, 10:56 am | Read time: 3 minutes

Year after year, “Time Out” ranks the best cities in the world. Locals are asked for their opinions on culture, leisure activities, neighborhoods, food offerings, nightlife, and much more. But it’s also about how happy the residents are. For the ranking of the world’s happiest cities in 2026, locals were asked to rate the following statements:

• My city makes me happy.
• The people in my city seem positive.
• I feel happier in my city than in other places.
• I find joy in the everyday things my city offers.
• The feeling of happiness has recently increased significantly in my city.

With the data collected, “Time Out” finally identified the cities whose residents are the happiest. To ensure the list represents cities worldwide, only the top-ranked city from each country was included in the top 20, it says.

Here Residents Are the Happiest

The large city of Bath in the southwestern English countryside ranks at the very top. Ninety-three percent of Bath’s residents stated in the survey that their city makes them happy. Ninety-two percent feel happier in Bath than elsewhere, 91 percent find joy in the everyday experiences in the city, and 90 percent find that the people in Bath seem positive.

Bath is especially known for its ancient Roman baths and magnificent Georgian architecture. The university city has also been recognized by UNESCO as a World Heritage Site. Many might already be somewhat familiar with Bath–at least fans of the Netflix series “Bridgerton.” Numerous scenes were filmed directly in Bath.

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Second and Third Place in Latin America

Panama City ranks second among the happiest cities according to residents. Here, too, 93 percent of respondents said their city makes them happy. A notable 86 percent find joy in the everyday things in Panama City. With an overall happiness score of 83 percent, Guadalajara in Mexico takes third place.

German City in the Top 20

A German city is also in the top 20! Hamburg ranks 17th in the list of the happiest cities according to residents. Not particularly surprising. In the current “Happiness Atlas” by the University of Freiburg in collaboration with the Süddeutsche Klassenlotterie, the Hanseatic city tops the list of the happiest federal states.

Top 20 Happiest Cities According to Residents:

1. Bath, United Kingdom
2. Panama City, Panama
3. Guadalajara, Mexico
4. Medellín, Colombia
5. Krakow, Poland
6. Jaipur, India
7. Chicago, USA
8. Cape Town, South Africa
9. Shanghai, China
10. Gothenburg, Sweden
11. Montreal, Canada
12. São Paulo, Brazil
13. Valencia, Spain
14. Prague, Czech Republic
15. Melbourne, Australia
16. Kuala Lumpur, Malaysia
17. Hamburg, Germany
18. Porto, Portugal
19. Amsterdam, Netherlands
20. Chiang Mai, Thailand