Undocumented immigrants in the US contributed nearly $100 billion in taxes: Report

Undocumented immigrants in the US contributed nearly $100 billion in taxes: Report

ITEP Study Highlights Economic Impact of Undocumented Workers

A recent study by the Institute on Taxation and Economic Policy (ITEP) has revealed that undocumented immigrants contributed nearly $100 billion in taxes in 2022, challenging misconceptions about their economic burden on the US government. These immigrants paid about 26% of their income in taxes, a rate comparable to the median US taxpayer.

Significant contributions despite limited benefits

In 2022, undocumented individuals contributed an estimated $96.7 billion in tax revenues, averaging around $9,000 per person. Despite typically earning lower incomes, they are less likely to claim tax refunds. Notably, approximately one-third of their taxes fund Social Security and Medicare, programs for which they are largely ineligible.

Geographic distribution and Potential for increased tax revenue

The report highlights that over half of the undocumented population resides in California, Florida, Texas, and New York, with six states, including California and New York, receiving over $1 billion each from their undocumented residents. The ITEP suggests that granting work authorization could potentially increase tax contributions by improving compliance and wages.

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