Moving from Illinois to Arizona: The Real Numbers
ClozeEZ, the for-sale-by-owner site, lays out the real numbers on moving from Illinois to Arizona. Roughly 9,400 Illinoisans moved to Arizona in 2024 (Census ACS 2024 1-year). Arizona homes cost more: Illinois's statewide median of $345,000 and Chicago metro's $407,000 both sit below Greater Phoenix's $485,000, so this is not a price story. It is a property tax story: Illinois's 1.88% effective rate is the second-highest in the nation, nearly four times Arizona's 0.48%.
Illinois vs. Arizona at a glance
| Illinois | Arizona | |
|---|---|---|
| Moved to Arizona (2024) | ~9,400 people | A second-tier but substantial corridor |
| Median home price | $345,000 state / $407,000 Chicago metro | ~$485,000 (Greater Phoenix), higher |
| Income tax | 4.95% flat | 2.5% flat |
| Effective property tax | 1.88%, 2nd highest in the US | 0.48% |
| Annual snowfall | 38.4 inches (Chicago) | None recorded (Phoenix) |
The property tax number carries this page
At Illinois's 1.88% effective rate, the Chicago metro median home of $407,000 carries roughly $7,650 a year in property tax. At Arizona's 0.48%, a $485,000 Phoenix home carries about $2,330. That is roughly $5,300 a year less on a house that costs $78,000 more: the arithmetic that makes this move work despite Arizona's higher prices.
The retirement-income reversal, which most pages miss
Illinois does not tax retirement income at all: 401(k) and IRA distributions, qualified pensions, and the federally taxed portion of Social Security are all exempt. Arizona does tax 401(k), IRA, and private pension distributions at 2.5%, though it exempts Social Security entirely and exempts military retirement pay.
So the tax math splits by household. A wage earner wins on both axes, moving from 4.95% to 2.5% on income and from 1.88% to 0.48% on property. A retiree living on pension and IRA draws picks up an income tax they did not previously pay, but Illinois's property tax burden generally swamps that at any realistic home value. Run your own numbers, and run them with a tax professional.
Where Arizona does not win
Arizona homes cost more than Illinois homes, about $140,000 more than the state median and $78,000 more than the Chicago metro median. And Illinois retirees give up a full retirement-income exemption by moving. This is a carrying-cost and climate comparison, not a cheaper-house comparison.
Illinois to Arizona: frequently asked questions
How much lower are Arizona property taxes than Illinois?
Arizona's effective rate is 0.48% against Illinois's 1.88%, the second-highest in the nation. In dollars: roughly $7,650 a year on the $407,000 Chicago metro median versus about $2,330 on a $485,000 Phoenix home.
Are homes cheaper in Arizona than Illinois?
No. Illinois's statewide median was about $345,000 in June 2026 and the Chicago metro about $407,000, both below Greater Phoenix's roughly $485,000.
Will my retirement income be taxed in Arizona?
Partly. Arizona taxes 401(k), IRA, and private pension distributions at its flat 2.5%, while fully exempting Social Security and military retirement pay. Illinois exempts all retirement income, so this is one dimension where a move costs an Illinois retiree money, usually less than the property tax savings, but worth calculating with a professional.
How different is the winter?
Chicago averages 38.4 inches of snow a year and 121 days with lows at or below freezing, with a January normal low of 18.8°F. Phoenix records no measurable snowfall in a typical year and averages 0.6 days below freezing.