Compare taxes and see how much you save moving from Illinois to Arizona
The Midwest escape route. Illinois' 4.95% flat tax seems moderate, but it's paired with America's 2nd-highest property taxes (2.08% average). Arizona's 2.5% flat rate is the lowest among all income tax states. At $100,000: Illinois $4,950 vs Arizona $2,500—save $2,450/year. Add property tax savings (IL 2.08% vs AZ 0.62%) and the move saves dramatically more. Phoenix's tech boom (Intel, TSMC) and Scottsdale's retirement appeal draw Chicago-area residents fleeing taxes and winters.
Flat Tax
Flat rate + high property
Lowest Flat Tax
Lowest among income tax states
At $100,000 income:
That is $204/month back in your pocket!
| Income | IL Tax | AZ Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,475 | $1,250 | AZ saves $1,225 | $12,250 |
| $75,000 | $3,713 | $1,875 | AZ saves $1,838 | $18,380 |
| $100,000 | $4,950 | $2,500 | AZ saves $2,450 | $24,500 |
| $150,000 | $7,425 | $3,750 | AZ saves $3,675 | $36,750 |
| $250,000 | $12,375 | $6,250 | AZ saves $6,125 | $61,250 |
| $500,000 | $24,750 | $12,500 | AZ saves $12,250 | $122,500 |
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Moving from Illinois to Arizona? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →Income tax at $100K: save $2,450/year (IL $4,950 → AZ $2,500). Property tax is where it gets dramatic: Illinois average 2.08% vs Arizona 0.62%. On a $400K home: IL charges $8,320/year vs AZ $2,480—save $5,840/year. Combined income + property tax savings: $8,290/year. Over 10 years: $82,900.
Yes—among the 41 states with income tax, Arizona's 2.5% flat rate is the absolute lowest. Only the 9 no-tax states (FL, TX, NV, WA, TN, WY, SD, AK, NH partial) have lower rates at 0%. Arizona achieved this through 2023 tax reform, dropping from a 4-bracket system (up to 4.5%) to 2.5% flat.
It's a significant adjustment. Phoenix summers: 100-115°F for 4+ months. AC runs 24/7; electric bills hit $300-500/month June-September. Many do reverse-snowbird: spend summers elsewhere or in Arizona's cooler mountain towns (Flagstaff 7,000 ft elevation, 15-20°F cooler). Scottsdale retirees often have dual residences to escape summer.
Smaller but growing fast. Phoenix is a semiconductor hub: Intel ($20B expansion), TSMC ($40B fab), and supplier companies. Healthcare is huge (Mayo Clinic, Banner Health). Finance and tech are growing. Chicago has more Fortune 500s and deeper professional services, but Phoenix's growth rate exceeds Chicago's, which is losing companies to lower-tax states.
Illinois has ~$140 billion in unfunded pension liabilities—worst in the nation. Many analysts expect future tax increases to address this. The state constitution protects pensions, limiting solutions. This uncertainty drives outmigration. Arizona has no such crisis—its pension systems are relatively well-funded. For long-term tax stability, Arizona is the safer bet.