Income inequality is an obvious phenomenon in the process of economic growth in China, and population aging has an important influence on income inequality. The paper makes an examination on the spatial correlation of income inequality between regions by the global Morans index(Morans I)of and spatially localized LISA map. Furthermore, this paper tries to construct the Spatial Lag Model and Spatial Error Model based on provincial level panel data of China from 1998 to 2014 and explore the aging effect mechanism of income inequality. Our estimation result shows income inequality of different provinces has significantly positive spatial correlation in China, which means provinces with high (low) income inequality tend to be adjacent. Aging Population does increase income inequality significantly. Moreover, this impact is mainly from topcaging because income inequality in different age groups increases with age.