Millions of undocumented immigrants across the United States are actively contributing billions of dollars in state and local taxes annually, a reality that frequently remains absent from national policy discourse. According to data from the Institute on Taxation and Economic Policy (ITEP), this population contributed an estimated $96.7 billion in federal, state, and local taxes in 2022 alone. This widespread participation in the tax system occurs despite a lack of legal work authorization, as many individuals utilize Individual Taxpayer Identification Numbers (ITINs) to fulfill their civic obligations.
The Mechanics of Contribution
The tax contributions of undocumented workers derive primarily from three sources: sales and excise taxes, property taxes, and payroll taxes. Because these taxes are consumption-based or embedded in housing costs, they are paid by individuals regardless of their immigration status. When a person buys groceries, pays rent, or purchases gasoline, they are contributing to the public coffers of their local community.
Beyond indirect taxes, a significant portion of this population also pays into Social Security and Medicare through payroll deductions. Many undocumented workers use ITINs to file income tax returns, hoping that a documented history of tax payments might eventually support a pathway to legal status. The Social Security Administration has long noted that billions of dollars in contributions remain in the
