New Study Suggest Undocumented Immigrants Pay Close to $12 Billion in Taxes

The Institute of Taxation and Economic Policy recently released a study that estimates the state and local tax contributions of undocumented immigrants to be $11.64 billion a year. The study estimates the contribution of all 11 million undocumented immigrants. This helps highlight the potential loss of tax revenue if these immigrants were deported. The study provides evidence undocumented immigrants pay taxes on goods, services, homes, and personal income. Here are some takeaways from the ITEP’s study on undocumented immigrants.

An Average of 33% of Undocumented Immigrants Are Homeowners

The institute reports that a third of undocumented immigrants are homeowners which would require undocumented immigrants to pay property taxes. The data in the report shows the total taxes paid by undocumented immigrants, 30%, came from property taxes. Undocumented immigrants purchase goods and services that are are taxed making up 59.7% of their total tax contributions.


Creating A Path Towards US Citizenship May Increase Tax Revenues by $2.18 Billion

The IETP report states that over 60% of undocumented immigrants have lived in the US and contributed to the economy for more than a decade. Converting undocumented immigrants to legal residents will increase yearly local and state tax revenue from $11.73 billion to $13.91 billion. Creating legislature to deport undocumented immigrants may cause states to lose a large portion of the workforce and tax revenue. 


The data provided by the IETP, discredits the statement that these immigrants do not pay taxes. Undocumented immigrants on a daily basis buy food, clothing, and gasoline which boosts local economies and taxed. Undocumented immigrants need housing and pay property taxes as homeowners. These basics are necessary to all Americans and are taxed. Immigrants without social security numbers still pay taxes that support local and state governments.

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