Based on the data of 10 counties of 3 major grain-producing provinces (Shandong,Henan and Anhui),this paper uses Propensity Score Matching (PSM) method and the calculation of Gini coefficient to analyze the impact of land transfer on farmers’ income level,income structure and income inequality. The results are as follows:1) From the perspective of income level,land transfer raises farmers’ income with the per capita income of farmers involved in land transfer being 26.11% higher than that of those excluded; 2) From the perspective of income structure,the land use right acquirers’ agricultural production income and property income increase significantly,while their transfer-payment income obviously reduces. For the land use right sellers,their property income and transfer-payment income improves,yet the agricultural production income reduces significantly. The non-agricultural workers’ income does not pass the significance test for both transfer peasants; 3) From the perspective of income gap,land transfer aggravates the income gap among rural households,and the Gini coefficients of land use right acquirers and sellers increase by 49.83% and24.93% respectively after the land transfer. Results above show that land transfer is a new way to increase rural household income.