Fact Friday: Undocumented immigrants Tax contributions

In 2022, undocumented immigrants contributed a substantial $96.7 billion in federal, state, and local taxes. The majority of this amount, totaling $59.4 billion, was paid to the federal government, with the remaining $37.3 billion distributed to state and local entities.

On an individual basis, undocumented immigrants paid an average of $8,889 in federal, state, and local taxes in 2022. This translates to a significant $8.9 billion in additional tax revenue for public services for every 1 million undocumented immigrants residing in the country.

Interestingly, over a third of the tax dollars paid by undocumented immigrants are allocated towards payroll taxes, which fund programs that these individuals are typically unable to access. Specifically, in 2022, undocumented immigrants contributed $25.7 billion in Social Security taxes, $6.4 billion in Medicare taxes, and $1.8 billion in unemployment insurance taxes.

At the state and local levels, nearly half (46 percent, or $15.1 billion) of the tax payments made by undocumented immigrants are derived from sales and excise taxes on their purchases. The remaining contributions are made through property taxes, such as those imposed on homeowners and renters (31 percent, or $10.4 billion), as well as personal and business income taxes (21 percent, or $7.0 billion).

Overall, it’s pretty clear that undocumented immigrants are making a huge dent in tax contributions, and it really shows their economic influence and how important they are for keeping public services running across different government levels. Just remember, they don’t get to reap the benefits from the taxes they’re putting in.