Abstract: Considering the upcoming carbon tax policy in China, a two-level urban logistics distribution network is addressed under carbon tax. A new convex MIP model, balancing logistics operation cost and carbon emission cost, is then established. By analyzing a real case,the popular business optimization software GLPK is applied to solve the corresponding model. Detailed analysis to the output displays the effectiveness of the model. Results show that under gradually rising carbon tax rates, the urban logistics distribution operator could only finely adjust its network configurations to yield good economic and environmental performance.