The study analyzed income inequality between urban and rural residents in China using data from the CGSS survey. The findings reveal that income inequality is a significant issue in China, with urban areas experiencing more inequality than rural areas. The income gap in rural areas is also widening. In terms of regions, the income disparity between eastern and western regions is more pronounced than that between central and northeastern regions. Factors contributing to income inequality include disparities within urban areas, between urban and rural areas, and among different regions. Household registration and education level differences are key factors widening the income gap among urban residents.