Fact check: How many undocumented immigrants pay taxes in the US?

1. Summary of the results

Based on the analyses provided, undocumented immigrants contribute substantial amounts in taxes to the United States. The most recent data shows that undocumented immigrants paid approximately $96.7 billion in federal, state, and local taxes in 2022 ^{[1] [2]}. This breaks down to $59.4 billion paid to the federal government and $37.3 billion to state and local governments ^[1].

For 2023, the Institute on Taxation and Economic Policy (ITEP) reports that households led by undocumented immigrants paid $89.8 billion in total taxes, including $55.8 billion in federal taxes and $33.9 billion in state and local taxes ^{[3] [4]}. The data indicates that 50% to 75% of undocumented immigrant households file tax returns using Individual Taxpayer Identification Numbers (ITINs) ^[3].

Notably, undocumented immigrants contribute significantly to social safety net programs they cannot access: they paid $26 billion in Social Security taxes and $6.4 billion in Medicare taxes in 2022, despite being ineligible to receive Social Security benefits ^[5].

2. Missing context/alternative viewpoints

The original question lacks several crucial pieces of context that significantly impact the tax contribution landscape:

• Recent policy changes are creating barriers to tax compliance: A new Memorandum of Understanding (MOU) between the IRS and the Department of Homeland Security allows for sharing taxpayer data for immigration enforcement purposes ^[6]. This has created fear among immigrant communities about paying taxes due to deportation concerns ^[2].
• Potential for increased contributions: Research shows that granting work authorization to undocumented immigrants could increase their tax contributions by $40.2 billion per year ^[1]. This suggests current contributions represent only a fraction of potential tax revenue.
• The enforcement paradox: While the government benefits from billions in tax revenue from undocumented immigrants, recent data-sharing agreements between tax and immigration authorities may reduce future tax compliance and revenue ^[2].
• Beneficiaries of current system: The current arrangement benefits federal and state governments that receive substantial tax revenue while maintaining a workforce that cannot access many of the benefits their taxes fund, particularly Social Security and Medicare ^[5].

3. Potential misinformation/bias in the original statement

The original question itself does not contain misinformation, as it simply asks for factual information. However, the framing could potentially lead to incomplete understanding:

• The question doesn't address the complexity of tax compliance: By asking "how many" pay taxes, it may imply a simple binary when the reality involves varying levels of participation (50-75% file returns) and different types of tax contributions ^[3].
• Missing policy context: The question doesn't acknowledge that recent policy changes are actively discouraging tax compliance through data-sharing agreements that create deportation fears ^{[2] [6]}.
• Omits the contribution-benefit disparity: The question doesn't highlight that undocumented immigrants contribute billions to programs like Social Security and Medicare while being ineligible for benefits, creating a net positive fiscal impact ^[5].

The data consistently shows that undocumented immigrants are significant tax contributors, but recent policy developments may jeopardize this revenue stream by creating fear and reducing compliance.