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Fact check: Is it possible for illegal immigrants to pay state and federal taxes?

Checked on July 17, 2025

1. Summary of the results

Yes, it is absolutely possible for illegal immigrants to pay state and federal taxes. The evidence overwhelmingly confirms that undocumented immigrants not only can pay taxes but do so in substantial numbers and amounts.

Key mechanisms for tax payment:

  • Undocumented immigrants use Individual Taxpayer Identification Numbers (ITINs) to file tax returns when they lack Social Security numbers [1] [2]
  • Between 50% to 75% of undocumented immigrant households actively file tax returns [2]
  • Nonresident aliens must file returns if engaged in U.S. trade or business or have U.S. income not satisfied by tax withholding [3] [4]

Financial contributions:

  • Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022 [1]
  • Another source indicates they contribute around $100 billion annually in taxes [5]
  • Households led by undocumented immigrants paid $89.8 billion in total taxes in 2023 [6]

2. Missing context/alternative viewpoints

The original question lacks several crucial contextual elements:

Recent policy changes creating uncertainty:

  • A new data-sharing agreement between the IRS and Department of Homeland Security has created fear among undocumented immigrants about filing taxes, as their tax information could potentially lead to deportation [5] [1]
  • This policy shift has caused undocumented immigrants to feel "betrayed" after paying taxes "in good faith" [5]

Economic implications:

  • The new IRS-ICE information sharing policy could lead to billions less in tax revenue as undocumented immigrants may stop filing returns out of fear [1]
  • This represents a significant potential loss to government coffers at federal, state, and local levels

Benefit disparity:

  • While undocumented immigrants pay substantial taxes, HHS has banned illegal aliens from accessing taxpayer-funded programs [7], creating a situation where they contribute financially but cannot access many benefits their taxes fund

Who benefits from different narratives:

  • Government agencies and politicians benefit from highlighting tax contributions when discussing economic impact
  • Immigration enforcement agencies benefit from emphasizing the new data-sharing capabilities
  • Anti-immigration advocates benefit from focusing on benefit restrictions rather than tax contributions

3. Potential misinformation/bias in the original statement

The original question itself does not contain misinformation, as it is posed as a neutral inquiry. However, the framing could perpetuate common misconceptions:

Implicit assumptions:

  • The question's phrasing suggests uncertainty about whether undocumented immigrants can pay taxes, when the reality is that they are required to pay taxes on U.S. income regardless of immigration status [6] [3] [4]

Missing legal context:

  • The question doesn't acknowledge that tax obligations exist independently of immigration status - anyone earning income in the U.S. has tax responsibilities [3] [4] [8]

Omitted scale of participation:

  • The question fails to convey that this is not a theoretical possibility but a widespread practice involving billions of dollars annually in tax contributions [5] [1] [6]

The most significant bias would come from those who might use this question to suggest undocumented immigrants don't contribute to tax systems, when the evidence clearly demonstrates they are substantial contributors to federal, state, and local tax revenues.

Want to dive deeper?
How do undocumented immigrants obtain ITIN numbers for tax purposes?
What percentage of illegal immigrants pay state and federal taxes in the US?
Can illegal immigrants claim tax refunds or credits like the Earned Income Tax Credit?
Do states with sanctuary policies have different tax laws for undocumented immigrants?
How does the IRS verify income and employment for tax-paying non-citizens?