How much did undocumented immigrants pay in federal income taxes in 2023 or latest year?

1. What the major estimates say and why they differ

The Yale Budget Lab’s 2023 estimate places total federal income plus payroll tax payments by unauthorized immigrants at about $66 billion in 2023, and notes roughly two‑thirds of that total is payroll taxes rather than income tax proper ^[2]. The Institute on Taxation and Economic Policy and Americans for Tax Fairness cite a 2022 baseline that shows roughly $19.5 billion in federal income taxes (distinct from payroll taxes) paid in 2022, a figure that several outlets and advocates use as a comparator for 2023 coverage ^{[1] [5]}. The American Immigration Council’s 2023 reporting aggregates different federal streams and reports $55.8 billion in “federal taxes” paid by households led by undocumented immigrants in 2023, reflecting a broader definition that likely blends income, payroll and other federal levies ^{[4] [6]}. Media summaries sometimes conflate these measures, producing apparent contradictions that are resolved once one checks whether “federal taxes” includes payroll withholding (FICA) or only federal income tax ^{[7] [3]}.

2. Breaking down income tax versus payroll tax

Payroll taxes (Social Security and Medicare withholding) are routinely collected at the workplace and show up in aggregated withholding tallies even when workers lack valid Social Security numbers; researchers therefore find substantial payroll contributions from undocumented workers that do not translate into benefit eligibility ^{[2] [8]}. Yale’s Budget Lab explicitly separates payroll from income tax and estimates that around two-thirds of its $66 billion total in 2023 was payroll taxes, which implies federal income tax in its accounting is materially smaller—consistent with the $19–22 billion figures reported elsewhere for federal income tax specifically ^{[2] [3]}. Analysts and nonprofits such as ITEP and the American Immigration Council often present combined tallies—federal, state and local—that approach $90–97 billion for recent years, which can obscure the income‑tax‑only portion unless disaggregated ^{[9] [4] [5]}.

3. Methodological reasons for variation and caveats

Estimates rely on different inputs: administrative ITIN filing data, Census and ACS microdata, assumptions about under‑the‑table work, withholding patterns based on W‑4 rules, and projections of immigrant labor force size—each choice affects the income tax share ^{[2] [10] [11]}. For example, the Yale Budget Lab adjusted withholding using 2023 W‑4 parameters and IRS aggregate refund patterns to estimate compliance, while other organizations extrapolate from 2022 tax‑year studies or state tax maps to generate 2023 figures; those assumptions drive whether an estimate emphasizes payroll withholding or net income tax liability at filing ^{[2] [5]}. The IRS does not collect immigration status on tax returns, so every estimate is an informed reconstruction rather than a direct census of undocumented taxpayers ^[10].

4. Bottom line for the question asked

When the question is read narrowly—“How much did undocumented immigrants pay in federal income taxes in 2023?”—the best available, cited work points to roughly $19–22 billion in federal income tax paid by undocumented immigrants in 2023, while combined federal income plus payroll taxes are estimated at about $66 billion for the year ^{[1] [2] [3]}. If a broader meaning is intended—“federal taxes” including payroll withholding—the commonly cited 2023 totals are higher (mid‑tens of billions, up to the $55–66 billion range depending on the source), so clarity about which federal tax streams are meant is essential ^{[4] [2]}.