This study delves into the dynamics shaping happiness levels in Indonesia before and during the COVID-19 pandemic, specifically emphasizing gender and residence-type disparities. Using data from the 2017 and 2021 Happiness Level Measurement Survey, it offers insights into how different population segments were affected. The analysis employs a multilevel mixed-effects ordered logistic model, considering individuals nested within provinces, and measures pandemic severity using positive COVID-19 cases per 100,000 residents. This study evaluates pandemic-related happiness shifts using nationwide cross-sectional survey data from two timeframes. It derives substantial statistical strength from data involving 137,000+ respondents gathered through comprehensive face-to-face interviews. It mitigates recall bias by capturing happiness at two distinct time points, avoiding retrospective measures. The study examines and validates four research questions. First, higher COVID-19 cases in provinces correlate with lower happiness. Second, though women were happier than men, the pandemic reduced this gender-based gap. Third, urban residents were generally happier than rural residents, but the pandemic narrowed this difference. All the estimates exhibit statistical significance at the 1 percent level. Finally, while provincial poverty showed minimal happiness impact, a negative association between unequal per capita expenditure and happiness emerged, providing partial backing for investigating the role of macroeconomic conditions. This study reveals that the COVID-19 pandemic altered happiness dynamics in Indonesia, narrowing gender and residence-based gaps. It also emphasizes the role of socioeconomic factors, particularly unequal per capita expenditure, in influencing individual happiness, highlighting implications for targeted policy interventions.