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Fact check: Do undocumented immigrants pay income tax
Checked on July 19, 2025
1. Summary of the results
Yes, undocumented immigrants do pay income tax. The evidence overwhelmingly confirms that undocumented immigrants contribute substantially to federal, state, and local tax revenues through various mechanisms.
Key findings:
- Undocumented immigrants paid approximately $89.8-97 billion in total taxes annually - with $89.8 billion reported for 2023 [1] [2] and $96.7-97 billion for 2022 [3] [4]
- They use Individual Taxpayer Identification Numbers (ITINs) issued by the IRS to file federal tax returns, enabling them to pay income taxes legally [3] [5]
- Average contribution per person is $8,889 annually in taxes, which includes income tax payments [4]
- Income taxes represent a significant portion of their contributions - for example, in California, 21% of undocumented immigrants' $8.5 billion in state and local tax contributions came from personal or business income taxes [6]
2. Missing context/alternative viewpoints
The original question lacks several important contextual elements:
- The tax filing process involves significant risk - undocumented immigrants face potential deportation when filing taxes, as the current administration has implemented policies allowing the Department of Homeland Security to access sensitive tax data for deportation proceedings [7] [2]
- Multiple tax types beyond income tax - undocumented immigrants also contribute through sales taxes (46% of California contributions), property taxes (31%), and excise taxes, making their overall economic impact much broader than just income tax [6]
- Economic benefits to the broader system - these tax contributions support public services and infrastructure that benefit all residents, while undocumented immigrants often cannot access many of the services their taxes fund [5] [7]
- Policy implications - organizations like the American Immigration Council and American Immigration Lawyers Association (AILA) argue that current deportation policies discourage tax compliance and could reduce these substantial revenue streams [7]
3. Potential misinformation/bias in the original statement
The original question itself is neutral and factual, seeking information rather than making claims. However, the question may reflect common misconceptions:
- The question implies uncertainty about a well-documented fact - the data consistently shows undocumented immigrants do pay income taxes, suggesting this may address widespread misinformation that they do not contribute to tax revenues [3]
- Missing acknowledgment of compliance mechanisms - the question doesn't recognize that the IRS has established legal pathways (ITINs) specifically enabling undocumented immigrants to fulfill tax obligations [3] [5]
- Potential political weaponization - the framing could inadvertently support narratives used by those who benefit from portraying undocumented immigrants as economic burdens rather than contributors, when the evidence shows they contribute billions annually to government revenues [1] [4] [2]
Want to dive deeper?
How many undocumented immigrants pay income tax in the US?
What is the estimated annual tax revenue from undocumented immigrants?
Do undocumented immigrants qualify for tax refunds or credits?
How do undocumented immigrants file taxes without a Social Security number?
What are the tax implications for employers who hire undocumented workers?