Based on the panel data of provinces from 2011 to 2021, the relationship between digital economy and urban-rural income gap was explored. It is found that the impact of digital economy on the income gap between urban and rural residents has a significant “U”-shaped feature, and this impact has regional heterogeneity. It is obvious in the eastern and central regions, while in the western region, the development of digital economy helps to reduce the income gap between urban and rural residents. In addition, tax revenue plays a positive regulatory role in the “U”-shaped impact of the digital economy on the income gap between urban and rural residents, delaying the expansion of the income gap. The conclusion points out how policy makers should formulate and adjust policies in different regions to promote the balanced development of social economy by using the development of digital economy.

digital economy  /  urban-rural income gap  /  tax revenue