Quick answer
Arkansas has lower average 1BR rent ($1,000/mo vs $1,850/mo). State income tax: Arkansas (4.4%) vs Illinois (4.95%) — on a $120K salary that's $660/year difference.
State Comparison · 2026
Arkansas vs Illinois
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Arkansas vs Illinois at a Glance
| Metric | Arkansas | Illinois |
|---|---|---|
| Avg 1BR rent (major metros) | $1,000 ✓ | $1,850 |
| Avg median home price | $195K ✓ | $340K |
| Cheapest city | Little Rock ($1,000) ✓ | Chicago ($1,850) |
| Priciest city | Little Rock ($1,000) | Chicago ($1,850) |
| State income tax | 4.4% ✓ | 4.95% |
| Avg walkability | 40/100 | 78/100 ✓ |
| Cities tracked | 1 | 1 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Arkansas (4.4%).
Salary $80K
$440
/year saved in Arkansas
Salary $120K
$660
/year saved in Arkansas
Salary $200K
$1,100
/year saved in Arkansas
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Arkansas (AR)
Tax reality
Arkansas has a 4.4% top income tax and 6.5% state sales tax (plus local, reaching 11.5% in some areas). Combined with low property values ($200K median home vs $450K+ in Texas), effective tax burden is below national average.
Top cities (1 tracked)
Top drawbacks
- ✕Tornado risk is real — Arkansas ranks top 5 for tornado frequency and deadliness. April-May is peak season with multiple outbreaks per season.
- ✕Delta poverty is severe and structural — median household income in East Arkansas counties runs $28K-$35K (vs $50K+ in Bentonville). Public services and infrastructure deteriorate rapidly outside metro areas.
- ✕School funding varies wildly. Bentonville schools are excellent (per-pupil spend ~$11K+) but Delta schools are chronically underfunded (~$7K per pupil). Quality depends entirely on zip code.
Illinois (IL)
Tax reality
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
Top cities (1 tracked)
Top drawbacks
- ✕Property tax is brutal — Cook County averages 2.3% effective. On a $500K home, that's $11,500/year. Homeowners feel this every month.
- ✕Chicago winters are genuinely cold. Lake-effect snow, mid-December through March subzero streaks, and winds off Lake Michigan can make it feel -20°F. This is the biggest filter for people considering moving here.
- ✕The state fiscal situation (pension debt, budget pressures) drives ongoing policy uncertainty — property tax, sales tax, and various fees continue to drift upward.
Frequently Asked Questions
Is Arkansas or Illinois cheaper to live in?
Arkansas has lower average 1BR rent across major metros — $1,000/mo vs $1,850/mo in Illinois, a $850/mo difference. Home prices: Arkansas median is $195K vs $340K.
Arkansas vs Illinois: which has lower state income tax?
Arkansas has lower state income tax (4.4%) vs 4.95% in Illinois. On an $80K salary that's $440/year in savings. On $200K, savings grow to $1,100/year.
Should I move from Arkansas to Illinois?
Arkansas has a 4.4% top income tax and 6.5% state sales tax (plus local, reaching 11.5% in some areas). Combined with low property values ($200K median home vs $450K+ in Texas), effective tax burden is below national average.
What are the best cities in Arkansas vs Illinois?
Arkansas's largest metros include Little Rock. Illinois's largest metros include Chicago. Cost of living varies significantly within each state — a Arkansas suburb can be 40% cheaper than its flagship city, and vice versa.