Arizona vs Illinois
Property Tax Comparison: Arizona vs. Illinois
Intro
Both Arizona and Illinois levy property taxes that fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arizona’s effective property tax rate is considerably lower than Illinois’s. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and outline the groups for whom the comparison is most relevant.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Arizona | Illinois |
|---|---|---|
| Effective property tax rate | 0.52 % | 2.07 % |
| Median home value | $358,900 | $250,500 |
| Median annual property tax | $1,858 | $5,189 |
| Property tax on a $250,000 home | $1,294 | $5,179 |
| Property tax on a $500,000 home | $2,589 | $10,357 |
| Median household income | $76,872 | $81,702 |
Sources: “According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).”
Which State Wins on Property Taxes?
Winner (lower tax burden): Arizona
- Tax‑rate difference: 2.07 % – 0.52 % = 1.55 percentage points.
- Relative difference: (1.55 % / 2.07 %) ≈ 75 % lower in Arizona compared with Illinois.
- Annual tax difference on a $250 k home: $5,179 – $1,294 = $3,885.
- Annual tax difference on a $500 k home: $10,357 – $2,589 = $7,768.
Because the effective tax rate in Arizona is roughly three‑quarters lower than in Illinois, homeowners in Arizona pay less in property taxes on comparable home values.
Who Might Find This Comparison Most Useful?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the ongoing cost of owning a home in each state helps evaluate affordability beyond purchase price. |
| Retirees | Property tax levels can significantly affect fixed‑income budgets; lower rates may make Arizona more attractive. |
| Real‑estate investors | Tax burden influences net return on rental properties; the lower Arizona rate may improve cash flow. |
| Policy analysts & researchers | The data illustrate how state‑level tax policies differ, useful for comparative fiscal studies. |
The comparison does not address other tax categories (e.g., income or sales taxes) or cost‑of‑living factors; it is limited to property tax metrics.
Additional Resources
- Detailed information on Arizona’s property tax structure: Arizona property tax
- Detailed information on Illinois’s property tax structure: Illinois property tax
Based on the most recent ACS estimates, the figures presented here reflect median values and effective rates, which may differ from individual tax bills that depend on specific assessments, exemptions, and local millage rates.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.