Income satisfaction is an important index of evaluating the welfare of a country or area. Based on the data of urban residents in Beijing the exploratory factor analysis finds the measurement of income satisfaction consists of two levels indicators which include twelve items. The weight of each indicator on income satisfaction is calculated by the contribution rate and scores of the factors. The income satisfaction of urban residents in Beijing is lower under the income satisfaction index system. Thus it is a key measure for Beijing’s government to adjusting the income distribution institution in order to improve the income satisfaction and welfare of urban residents in Beijing.