One of main objectives of all governments and policy makers is to improve income distribution while decreasing income inequalities. The present paper aims at studying the effects of economic corruption on the Gini coefficient, as an indicator of income distribution. To fulfill our goal, two groups of countries were selected as our research targets: five-high income countries (Germany, France, Italy, Canada, and Japan) and five medium-income countries (Iran, Turkey, India, Malaysia and china). Adopting a panel data model analyzing the period covering 2000- 2012, we found out that economic corruption has a significant effect on Gini coefficient: in both target groups, a higher level of corruption translated into higher income inequality. Besides, we found that improved levels of economic growth left a negative effect on income distribution in high-income countries and a positive effect on medium-income countries. Another conclusion we reached was that tax revenues had a negative effect on income inequality. And finally we found that unemployment increased income inequality in both target groups.