Local logic is the value consensus and code of conduct formed by peasants in their common life. To explore the impact of income inequality on peasants’ subjective well-being under local logic is to provide spiritual impetus for the realization of common prosperity from the perspective of rural civilization. Based on the perspective of peasants, using the tracking data of two village in Fuxian County, Shaanxi Province in 2016 and 2021, this paper analyzes the impact of income inequality on peasants’ subjective well-being, and discusses the regulatory role of local logic in it. The results show that income inequality will inhibit peasants’ subjective well-being, and this inhibition is more obvious for high social status, highly educated and young peasants. Further analysis found that the traditional local logic characterized by “rule of Rites” will positively adjust the impact of internal income inequality on peasants’ subjective well-being, while the changed local logic formed under the infiltration of modern networks will negatively adjust the impact of income inequality on peasants’ well-being. Based on this, the government should further expand the channels of increasing peasants’ income, control peasants’ income inequality within a reasonable range, strengthen the human norms contained in the traditional local logic, and create a good network cultural atmosphere.