The past few decades have witnessed a radical religious revival in China, where economic inequality has been sharply increasing as well. This study examines the impact of religion on the Chinese public’s perceptions of income disparity and political trust. The findings show that there is a significant difference in the perceived fairness of personal income distribution between religious and non-religious people. As the opiate thesis on religion predicts, religious beliefs are positively associated with a high level of perceived fairness about personal and national income distribution. Such perceptions of fairness contribute to fostering citizens’ trust in both political institutions and government officials. However, contrary to the opiate thesis, religious beliefs are negatively associated with institutional trust. Moreover, religious beliefs offset the positive effect of the perceived fairness of income distribution on institutional trust. Hence, when income distribution is perceived to be unfair, institutional trust declines more drastically among religious believers than among their non-religious counterparts.