Using CGSS data to analyze the impact of income and public services on people’s happiness，it shows that the inverted U-shaped relationship between them statistically significant，and the impact of absolute income and relative income on subjective happiness is stronger in the middle and low income groups，while absolute income has no significant impact on high-income groups. Public services can have a significant positive impact，and  the impact of low-income groups is significantly higher than that of middle and high income groups. Public services strengthen the positive impact of income on happiness by improving satisfaction and sense of gain，the negative effects of income were buffered by increasing the sense of income equity and social equity. To enhance people’s happiness，government  should promote the stable growth of income，maintain the fairness of income distribution，optimize the structure of public expenditure，promote the equal supply of basic public  services.