Fact check: Do undocumented immigrants pay taxes?

1. Why the dollar amounts differ and what researchers actually measured

Estimates of undocumented immigrants’ tax contributions vary because studies use different methods and timeframes: some aggregate income, payroll and sales taxes paid by households with at least one undocumented adult, while others use tax filings under ITINs or model-based estimates of taxable economic activity ^[1]. The commonly cited $96.7 billion for 2022 and the $89.8 billion for 2023 come from organizations that combine federal, state, and local tax categories; differences reflect updated economic activity, shifting labor markets, and methodological choices about who counts as “undocumented household” versus “unauthorized individual” ^{[1] [2]}. Comparing across studies requires attention to definitions and dates.

2. How undocumented people pay income and payroll taxes in practice

Many undocumented workers pay income taxes by filing returns using ITINs or by having taxes withheld from paychecks under Social Security numbers they may not legally possess; employers also withhold payroll taxes for employees regardless of immigration status. Legal guidance and clinics note that undocumented workers have the right to seek refunds and file returns, and misclassification or informal pay can complicate these filings ^{[3] [1]}. The fact that taxes are collected or filed does not equate to access to tax benefits—undocumented filers are generally ineligible for many federal tax credits, creating a mismatch between payments made and benefits received ^[3].

3. Sales, property, and local taxes add substantial but diffuse revenue

Beyond federal and state income taxes, undocumented residents contribute via sales taxes on consumption and property taxes, either directly as homeowners or indirectly as renters whose landlords pass costs along. Studies that total contributions across tax types emphasize how these diffuse streams—sales, property, excise and local fees—aggregate into large public-revenue impacts even when individual filings are invisible in federal statistics ^[1]. These sources of tax revenue are often less politically salient yet materially affect local budgets and services in places with sizable undocumented populations.

4. Counterpoints, gaps and non-relevant reporting in the record

Not every media piece or institutional notice addresses tax payments; some reports cited in the dataset are unrelated to the tax question, focusing on markets, care, or workforce roles without quantifying taxes ^{[5] [6] [7]}. This divergence underscores a reporting gap where headlines about “contributions” are not always backed by tax accounting, and it cautions against treating all citations as equivalent evidence. Analysts must exclude unrelated coverage when synthesizing evidence to avoid conflating descriptive commentary with measured fiscal estimates ^[5].

5. Legal and enforcement trade-offs that shape filing decisions

Filing taxes can create tension for undocumented individuals: it documents income but can support claims to residency or lawful presence in some administrative contexts, while also exposing potential immigration enforcement risks in certain scenarios. Clinics and advocacy groups note that tax filing is legally permissible and often advisable, but there are context-specific risks and benefits that influence whether people file, what identification they use, and how much tax revenue is ultimately captured ^{[3] [1]}. Policymakers and service providers factor these trade-offs into outreach and ID policies.

6. Political narratives and agendas that influence interpretation

Different stakeholders use tax-contribution figures to advance divergent agendas: advocates highlight large revenue contributions to argue for regularization programs or local protections, while opponents may understate contributions to justify stricter enforcement. Coverage pointing to higher effective tax rates or civic benefits frames undocumented residents as net contributors to communities, a narrative that can support municipal ID programs or protests against anti-immigrant measures ^[4]. Reader should treat each source as motivated and compare methods, publication dates, and institutional aims.

7. Bottom line for readers seeking a reliable takeaway

Multiple recent studies and legal clinics converge on two clear facts: undocumented immigrants do pay taxes across several tax categories, and those payments amount to tens of billions annually by most reputable estimates ^{[1] [2]}. Exact totals fluctuate with methodology, year, and inclusion rules; for precise policy discussion, use the most recent study dates and examine whether figures represent individuals, households, or modeled economic activity, and account for eligibility limits on tax benefits and enforcement concerns ^{[3] [1]}.