The survey ranks 156 countries based on a number of factors including gross domestic product per person, freedom of choice, trust, health, life expectancy, social support and generosity.
The Netherlands came in sixth place this year, followed by Canada, New Zealand, Sweden and Australia.
The report was released yesterday, days before the International Day of Happiness on March 20.
Although happiness and other squishy subjective experiences such as love are notoriously hard to measure - still, every year The Global Happiness Council sets out to objectively study and quantity happiness levels of various countries around the world.
The unhappiest countries were Burundi, the Central African Republic, South Sudan, Tanzania and Yemen.
While it's no surprise that the Scandinavian countries have yet again come out on top, it's always interesting to see in what order they fall.
The survey also reflected that Americans were getting less happy even as their country became richer.
Israel's overall No. 11 position was helped by its health system; the report placed the Jewish state in sixth position for improvement in life expectancy, after Japan, Iceland, Italy, Switzerland and Canada.
"Briefly put, (Nordic countries) are good at converting wealth into well-being", Wiking said.
Speaking on the report, Prof. Although set in a global context, most of the evidence and discussion are focused on the United States, where the prevalence of all three problems has been growing faster and further than in most other countries.
"I think there really is a deep and very unsettling signal coming through that US society is in many ways under profound stress, even though the economy by traditional measures is doing fine", Jeffrey D. Sachs, an editor of the report, said in an interview on Tuesday. "It's a country in this awful neighborhood, you've got terrorism, you've got radical Islam, you've got challenges, ' but it comes up ahead of most countries in the world", said Netanyahu.
"The most striking finding of the report is the remarkable consistency between the happiness of immigrants and the locally born", said report co-editor University of British Columbia Professor John Helliwell in the statement.
The report also evaluated six factors that might explain why people in the countries are happy (or not).