Interstate Relocation: Illinois → Arkansas

Moving from Illinois to Arkansas: Cost & Tax Comparison

Compare state income tax savings, HUD rent differentials, and household purchasing power adjustments when relocating from Illinois to Arkansas.

Data updated · Sources: HUD FY 2027 Fair Market Rents, EPI 2026 Family Budget, 2026 tax tables · Methodology

Effective Tax Rate Change -1.1 pts AR vs IL, $100k single
Annual Tax Savings +$1,118 Federal + FICA + state, $100k
1BR Rent Change -20.2% Avg 1BR $841 vs $1,053/mo
Net Annual Difference +$3,666 Tax savings + 1BR rent savings

What changes when you move from Illinois to Arkansas

Illinois has a flat 4.95% income tax and Arkansas has graduated income tax rates up to 3.9%. On a $100,000 salary a single filer pays $4,805 in state income tax in Illinois and $3,687 in state income tax in Arkansas. With federal income tax and FICA unchanged, total tax falls by $1,118 a year after the move. HUD's one-bedroom Fair Market Rent averages $1,053 a month across Illinois's metro areas and $841 across Arkansas's (-20.2%). Pay differs too: the BLS median wage across all occupations, weighted by employment in each state's metros, is $54,104 in Illinois and $44,653 in Arkansas. City and county income taxes, which some localities add, are not included in these state-level figures; the metro routes below include them.

Origin State: Illinois

Illinois Paycheck & Living Costs

Destination State: Arkansas

Arkansas Paycheck & Living Costs

Metropolitan Corridors Between Illinois & Arkansas

Chicago-Naperville-Elgin, IL-IN → Fayetteville-Springdale-Rogers, AR On $100k: $1,118 less tax and $8,688 less 1BR rent a year
Compare
Peoria, IL → Little Rock-North Little Rock-Conway, AR On $100k: $1,118 less tax and $96 more 1BR rent a year
Compare
Peoria, IL → Fayetteville-Springdale-Rogers, AR On $100k: $1,118 less tax and $1,140 more 1BR rent a year
Compare
Moving from Illinois to Arkansas: Cost & Tax Comparison Overview

Moving from Illinois to Arkansas on a $100,000 salary: pay $1,118 less in total taxes per year; average one-bedroom rent is $841 vs $1,053 a month (HUD FMR).

Quick answers
How much money will I save moving from Illinois to Arkansas?

For a single filer earning $100,000 with no local income tax, total federal, FICA and state taxes are $1,118 lower in Arkansas than in Illinois (1.1 percentage points of gross pay). The average HUD one-bedroom Fair Market Rent across Arkansas's metros is $841 a month, versus $1,053 in Illinois (-20.2%). Taxes and one-bedroom rent combined change by +$3,666 a year.

What are the key tax differences between Illinois and Arkansas?

Illinois: Flat Tax, top rate 4.95%. Arkansas: Graduated Brackets, top rate 3.9%. Federal income tax and FICA are the same in both states.