Economics of Immigration

Do undocumented immigrants pay taxes?

Undocumented Immigrants play a crucial role in the U.S. economy, not only through their labor but also through substantial tax contributions that support public services and government programs.

  • In 2022, households led by undocumented immigrants paid $75.6B in total taxes. This includes:
    • $29.0B in state and local taxes
    • $46.6B in federal taxes
  • In 2022, approximately 4.5% of the U.S. workforce was undocumented.
  • 89.8% of undocumented immigrants are of working age.

Our Map the Impact tool shows the tax contributions of immigrants at the national, state and local level.

Recent Features

All Economics of Immigration Content

Publication Date: 
May 1, 2007
New legislative proposals to drastically restrict family-based immigration practically ignore the social and economic benefits of the family-based admissions system for both immigrants and the native...
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May 1, 2007
A recent report from the Heritage Foundation is one in a long line of deeply flawed economic analyses which claim to estimate the contributions and "costs" of workers based solely on the amount of...
Publication Date: 
March 1, 2007
In recent years, there has been a great deal of controversy over the efforts of some banks to offer financial services to individuals without Social Security numbers, many of whom are undocumented...
Publication Date: 
March 1, 2007
By Tomás R. Jiménez, Ph.D. The United States long has been a nation of immigrants, but its policies are out of step with...
Publication Date: 
January 3, 2007
The United States possesses a number of competitive assets in the global war for talent: most notably, its huge and flexible labor market and an abundance of leading-edge multinational corporations...
Publication Date: 
December 1, 2006
One question that recently received heightened attention from lawmakers is whether or not immigrants should be admitted to the United States less on the basis of family ties and more on the basis of...
Publication Date: 
October 1, 2006
By Giovanni Peri, Ph.D.A crucial question in the current debate over immigration is what impact immigrants have on the wages of native...
Publication Date: 
September 1, 2006
Publication Date: 
August 1, 2006
Shortages of skilled labor constitute the foremost challenge confronting U.S. manufacturers who face growing competition from manufacturers in Asia, Eastern Europe, and elsewhere. Demand for...
Publication Date: 
August 1, 2006
New data from the 2005 American Community Survey (ACS), released by the Census Bureau on August 15, 2006, underscore the extent to which immigration continues to fuel the expansion of the U.S. labor...

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