Using data from North Carolina between 1999 and 2009, we examine to what extent the black-white test score gap may be attributed to teacher incentive pay (TIP) programs based on student test scores. We find statistically significant evidence that growth in the income gap between black and white households is associated with an increase in the black-white test score gap. This relationship is more pronounced in schools that have adopted TIP programs. However, the magnitude of the relationship between income inequality and the black-white test score gap does not differ much between schools with TIP compared to schools without TIP. Thus, our results provide some evidence that TIP may exacerbate income-based disparities in student achievement but no evidence that TIP programs directly and independently contribute to the black-white test score gap.