Education is an important factor in the formation of human capital. Improving the educational level is an objective pursued by governments. Taiwan has implemented nine-year national education since 1968. The educational inequality in Taiwan has been declining yearly, but the the income gap has increased year by year. Most of the literature is concerned about the uneven distribution of income and the lack of focus on education inequality. This study will use regional data from 1999 to 2014 in Taiwan to explore the relationship between education inequality and income gap. Each county and city is convenient for transportation, but due to different factors such as the geographical location, culture, and government policies of each county and city, the educational development and income gap of each county and city will be affected by the spillover effects of neighboring counties and cities in addition to their own influence. Therefore, this study will use the spatial econometric model to avoid the bias caused by omitted variables and use simultaneous equations to eliminate the endogenousness . The empirical result is that both educational inequality and income gaps have positive spatial autocorrelation.The more equal of counties and cities will be adjacent to each other, the smaller the difference between the county and city will be adjacent to each other. The educational inequality is negatively related to the income gap. The income gap will expand result in a decline in education inequality and a drop in education inequality, which will increase the income gap. This may due to the widening income gap, the greater the willingness of the poor to upgrade their academic qualifications, and the better job will improve their life, education inequality will decline, and unfair education will reduce employers' wages to people with poorer education, thus the income gap will expand.