State comparison
Arizona vs Illinois: which state is better to live in?
Arizona costs a median household about $4,500 a year less in state and local taxes than Illinois, mostly because property tax on a median home runs $2,142 a year against $4,758 in Illinois, though everyday prices run higher there (cost of living index 102 against 92).
Arizona
Moderate tax burden · COL index 102
Wins 6 categories
Illinois
High tax burden · COL index 92
Wins 8 categories
Taxes: Arizona vs Illinois
Arizona has a flat 2.5% income tax, which works out to 2.5% on a median income of $74,580, or $1,865 a year. Illinois has a flat 4.95% income tax, which works out to 5.0% on a median income of $74,580, or $3,692 a year. Arizona wins on income tax at 2026 rates.
Property tax is 0.51% of home value a year in Arizona and 1.73% in Illinois (Tax Foundation, 2023); on each state's median home that is $2,142 against $4,758, so Arizona has the lower rate.
Combined state and local sales tax averages 8.37% in Arizona and 8.82% in Illinois; Arizona is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,879 a year in Arizona, $10,423 in Illinois. Arizona is cheaper on total state and local tax.
Housing and cost of living
Arizona's cost of living index is 102 and Illinois's is 92, where 100 is the national average; Illinois is about 11% cheaper day to day.
The median home costs $420K in Arizona and $275K in Illinois (Zillow, 2024), a $145K gap in Illinois's favor. A two-bedroom rents for about $1,600 a month in Arizona and $1,400 in Illinois.
Home insurance averages $1,850 a year in Arizona and $1,900 in Illinois, so Arizona is cheaper to insure.
Safety
Violent crime runs 474 incidents per 100,000 residents in Arizona and 413 in Illinois (FBI Crime Data Explorer, 2023); Illinois is the safer state by that measure, with a rate 15% lower. Property crime is 2,624 per 100,000 in Arizona against 1,666 in Illinois, again favoring Illinois.
Health
Life expectancy is 76.3 years in Arizona and 77.2 in Illinois (County Health Rankings, 2024), a 0.9-year edge for Illinois. The Commonwealth Fund's 2023 scorecard ranks Arizona's health system 34th of 50 and Illinois's 20th, so Illinois scores better on care.
10.8% of Arizona residents have no health insurance against 7.4% in Illinois, which favors Illinois. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Arizona's K-12 schools 45th in the country and Illinois's 16th, 29 places apart in Illinois's favor. Arizona runs a school-choice voucher program; Illinois does not.
Laws and politics
In the 2024 presidential election Arizona went to Trump by 5 points and Illinois went to Harris by 14 points.
Arizona has permitless carry and a Giffords gun-law grade of F; Illinois has shall-issue carry permits and a grade of A, so Illinois regulates guns more tightly and Arizona is the friendlier state for gun owners.
Abortion is banned with narrow exceptions in Arizona and protected by state law in Illinois, and marijuana is legal for adults in both as of 2026. The minimum wage is $14.35 an hour in Arizona and $14.00 in Illinois.
Climate and risk
Natural disaster risk is moderate in Arizona (wildfire, extreme-heat, drought) and moderate in Illinois (tornado, flood, blizzard). Annual average air quality index is 46 in Arizona and 45 in Illinois (under 50 is good), favoring Illinois.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
6
Arizona
8
Illinois
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Score For My Profile →Questions people ask
Is Arizona or Illinois better to live in?
Illinois wins more of the measures that decide a move. Arizona on taxes ($5,879 a year for a median household against $10,423); Illinois on everyday costs (index 92 against 102); Illinois on safety (413 violent crimes per 100,000 against 474); Illinois on schools (ranked 16th against 45th).
Which is cheaper, Arizona or Illinois?
Illinois is cheaper day to day: cost of living index 92 against 102. The median home is $420K in Arizona and $275K in Illinois (2024). On state and local taxes Arizona saves a median household about $4,500 a year.
Does Arizona or Illinois have lower taxes?
Arizona. A household earning $74,580 pays about $5,879 a year in Arizona ($1,865 income tax, $2,142 property tax on the median home and $1,873 in sales tax) and $10,423 in Illinois ($3,692 income tax, $4,758 property tax on the median home and $1,973 in sales tax), at 2026 rates.
Which is safer, Arizona or Illinois?
Illinois, on the FBI's 2023 figures. Violent crime is 474 per 100,000 residents in Arizona and 413 in Illinois; property crime is 2,624 against 1,666.
Which has better schools, Arizona or Illinois?
Illinois. Education Week's 2023 Quality Counts report ranks Arizona 45th of 50 for K-12 and Illinois 16th. Arizona also offers school-choice vouchers.
Is Arizona or Illinois better for retirees?
Both treat retirement income about the same. Arizona does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; Illinois does not tax Social Security, exempts pensions and has an estate tax. Property tax on a median home is $2,142 a year in Arizona and $4,758 in Illinois.