Undocumented Immigrants Pay Higher Tax Rates Than Richest 1%

Undocumented immigrants in the United States in 2022 paid higher state and local tax rates than the top 1% of households in the vast majority of states, according to a new study.

The Institute on Taxation and Economic Policy (ITEP) study found that undocumented immigrants paid $59.4 billion in federal taxes and contributed an additional $37.4 billion to state and local tax coffers in 2022. Per capita, they paid $8,889 in total taxes.

The study’s authors found that if all currently undocumented immigrants were allowed to to work legally in the United States, their total tax contribution would soar by $40.2 billion per year to $136.9 billion.

“Most of the tax dollars paid by undocumented immigrants are collected through levies applied to their incomes,” the report states. “This includes broad income taxes as well as narrower payroll taxes levied on workers’ earnings that are dedicated to specific programs. It is well established that undocumented workers contribute to the solvency of major social insurance programs through their tax contributions.”