Income poverty is one of the most critical problems facing a large number of both rural and urban households in Ethiopia. Income poverty and associated problems will continue in a rural area unless appropriate developmental policies and interventions backed by research findings are affected. This study was conducted to profile rural income poverty status, to examine the magnitude of rural income poverty in terms of incidence, depth, and intensity and finally, to investigate the determinants of rural income poverty in Jabi Tehnan district at the household level. Descriptive statistics and econometric methods were employed for the analysis of rural income poverty status. The descriptive statistics revealed a significant mean difference at an acceptable significance level between the poor and non-poor sample rural households in terms of family size in adult equivalent (AE), off-farm/non-farm income, livestock holding in TLU, owned farmland, size of rented farmland, distance to extension center and loan rate. The result from Tobit model showed that family size in AE, distance to agricultural extension center, loan rate, and livestock holding in TLU, rented and own farm size were influencing rural household income poverty in the study area. The headcount ratio computed by FGT model revealed that 44.3 percent of the sample households were poor. The income poverty gap and severity were 13.76 and 1.893 percent, respectively. This result indicates that there was also a serious income poverty ratio, intensity, and inequality even in high agricultural productive kebeles1 of the study area. Use water resources, adopting income sources other than agriculture, improving family planning and strengthening of the health extension package program, and expand other local cooperatives and credit providing institutions equipped with optimum interest rates are the best option to alleviate income poverty in the study area. Key Words; consumption, expenditure, FGT, income, poor, poverty, 1: It is usually named as peasant association and is the lowest administrative unit in the country. Page ix of 101 Table of Contents STATEMENT OF AUTHOR ...................................................................................