The aim of the article is to study the distribution of income in Ukraine and indentify the level of inequality, as well as its causes. Official statistics do not give a real picture of the economic inequality in Ukraine. It was found out that the level of remuneration of labor is characterized by significant differentiation: the ratio of the minimum wage to the average wage was 0.263 in 2015. The minimum level of remuneration of managers of state companies exceeded the minimum wage in 2016 by 250 times. The share of capital in the national income in 2014-2015 grew to 50 %, which indicates the distribution of income in favor of the capital owners and the deterioration of the position of employees. The excess of the return on capital (10 %) over the average rate of economic growth (4 %) will increase the inequality in the future. The reasons for the growing inequality in Ukraine is the orientation in international competition for capital on the model of “cheap labor”, unfair taxation of income from capital, corruption, shadow economy.