The paper investigates the impacts of the property tax reform in China by developing a computable general equilibrium mode1．Using economic data in 2011 for calibration，the paper compares the productions，consumption，welfare and national incomes indifferent equilibria under varied property tax and income tax policies．The simulation shows that the implementation of property tax would decrease both house productions and consumption in the taxed area，and exert negative impacts on the regions with low GDP per capita.If the tax policy is adopted by more regions，the total social welfare and national income would increase．An increase in income tax would be a better policy than the property tax reform to serve the purpose of narrowing down the income disparity in China．