This paper investigates how digitalisation affected regional income inequality across European NUTS 2 regions during the period 2006–2021. Digitalisation is analysed in relation to selected regional factors, including labour market characteristics and the level of employee education, which potentially – although indirectly – determine equal earning opportunities, or conversely, enhance income inequality. To examine these relationships, panel fixed-effects and instrumental-variable regression models are employed. Empirical results demonstrate a non-linear relationship between digitalisation and income inequality, with initial increases in digitalisation associated with rising inequality due to skill-biased effects, although the relationship reverses with more advanced digitalisation. It is also found that the effect of digitalisation on income inequality is relatively stronger in regions with a higher share of tertiary-educated individuals and a more active labour force.