The low economic growth rate and the upgrading of economic structure are two typical facts in China’s “New Normal” phase，which have big impact on income inequality. The paper studies the income inequality changes in “New Normal” phase and finds that the income of low income household in the city and town grows faster than those of high income household，and this trend will not turn over in the short future. As a result，the income distribution of household in China’s cities and towns will be more equal in the future. The decline of farm products price leading by the low economic growth rate drives down the growth rate of farmer’s income，which makes the income distribution of household in rural areas more unequal. The low economic growth rate and upgrading of economic structure reduce the labor demand for residents coming from cities and towns and increasing the labor demand for residents coming from rural areas. Therefore，the wage growth rate for the labor coming from cities and towns is lower than that for the labor coming from rural areas，which makes the income gap between the household in cities and towns and those in rural areas become smaller. In short，the income distribution will be more equal in the future which contributes to the more equal income distributions of households in cities and towns and that in rural areas.