Illegal immigrants in US pay nearly $100 billion in taxes
Migrants who crossed the Rio Grande and entered the U.S. from Mexico are lined up for processing by U.S. Customs and Border Protection. (Photo by Eric Gay via AP Photo)
Undocumented immigrants in the United States contributed nearly $100 billion in taxes in 2022, according to a report by the Institute on Taxation and Economic Policy.
High tax contributions despite economic challenges
A common argument for limiting immigration revolves around the financial burden on the U.S. government. However, undocumented immigrants contribute approximately 26% of their income in taxes, mirroring the median taxpayer, as highlighted by a report from the Institute on Taxation and Economic Policy (ITEP), a left-leaning think tank.
In 2022, undocumented immigrants in U.S. collectively paid $96.7 billion in taxes, averaging around $9,000 per person. Despite generally lower incomes, they are less likely to claim refunds or earn tax-preferred income, thus contributing significantly to the national coffers.
Allocation of tax revenue
The report notes that a significant portion of the tax dollars collected from undocumented immigrants supports programs from which they are largely excluded. Specifically, $26 billion went to Social Security and $6 billion to Medicare.
Breakdown of tax contributions by undocumented immigrants in 2022:
- Total taxes paid: $96.7 billion
- Types of taxes: Sales and excise taxes, property taxes directly or through rent and payroll taxes via paycheck withholding or income tax returns.
Geographic concentration and economic impact
The undocumented immigrant population is concentrated in a few key states, with over half residing in California, Texas, Florida and New York. Six states, including New York and California, received over $1 billion in tax revenue from their undocumented residents.
As of 2022, nearly 11 million undocumented immigrants lived in the country.
