Property tax has the function to adjust income distribution by affecting the income and wealth of Chinese residents and by using transfer payment to improve the housing and public service of the residents with middle and low income. The condition for property tax can effectively play a role in the adjustment of income distribution by applying property tax to transfer payment，by virtuously coupling between tax system design and housing supply system，by extensive tax basis，by proper tax rate，by rational taxation laws，and by legal protection and so on. The adjustment of income distribution is an important goal of China’s reform of property tax，although property tax as a whole can still not effectively regulate income distribution based on the pilot property tax reform practice in Shanghai and Chongqing，the function for property tax to regulate income distribution can not be denied. Currently，the main factors to restrict effective regulation function of income distribution by China’s property tax emanate from immature measures such as too narrow tax basis，irrational taxation basis，and irrational housing price estimation，which needs to be further reformed. China should actively push forward reform enlargement of property tax，and continuously enhance the function of property tax to regulate income distribution by taking the housing market value as tax collection basis as soon as possible.