The impact of urbanization development level on the income gap between urban and rural residents has always been controversial. Based on the statistical data of Anhui Province from 2001 to 2019, this paper uses the entropy weight method to measure the development level of new urbanization in Anhui Province, uses Theil index to measure the income gap between urban and rural residents in Anhui Province, and carries out unit root test and cointegration test. Finally, VAR model and impulse response analysis are constructed. The results show that there is an inverted U-shaped relationship between the development level of new urbanization and the income gap between urban and rural residents in Anhui Province.When the development level of new urbanization is lower than 0.0212, the income gap will expand with the improvement of the development level of new urbanization.When the development level of new urbanization is higher than 0.0212, the income gap will narrow with the improvement of the new urbanization development level.In the long run, the development level of new urbanization has an obvious lag effect on narrowing the income gap between urban and rural residents.