The article examines the issues of the generation and distribution of labor income in the Republic of Armenia in the context of the experience and witnessed results of the application of various personal income tax regimes, particularly flat and progressive taxation systems. Based on the analysis of official statistics, main trends of inequality were observed, based on a number of tools used in scientific analysis: the Gini and Palma coefficients, as well as the Theil index. From the results of the study, it was found that the level of inequality in the country has decreased to some extent in the last two decades. At the same time, within the framework of the research, a simulation analysis was carried out and the methods of calculating the Lorenz curve and the Gini coefficient from the wellknown theoretical approaches to inequality assessment were applied in the case of flat and progressive taxation, using the personal income tax database of the RA State Re-venue Committee. Based on this method, as a result of the analysis, it was found that only the progressive taxation system has a certain positive impact in terms of alleviating in-come inequality, while the effect of flat taxation is insignificant.V