Lisa Christensen Gee, MPP, JD, Senior Policy Analyst, Matthew Gardner, Senior Fellow, Misha E. Hill, State Policy Fellow, and Meg Wiehe, MPA, Deputy Director of the Institute on Taxation & Economic Policy (ITEP), in a Mar. 2017 report, "Undocumented Immigrants’ State & Local Tax Contributions,” available at, stated:

“Like other people living and working in the United States, undocumented immigrants pay state and local taxes. They pay sales and excise taxes when they purchase goods and services (for example, on utilities, clothing and gasoline). They pay property taxes directly on their homes or indirectly as renters. Many undocumented immigrants also pay state income taxes. The best evidence suggests that at least 50 percent of undocumented immigrant households currently file income tax returns using Individual Tax Identification Numbers (ITINs), and many who do not file income tax returns still have taxes deducted from their paychecks.

Collectively, undocumented immigrants in the United States pay an estimated total of $11.74 billion in state and local taxes a year (see Table 1 for state-by-state estimates). This includes more than $7 billion in sales and excise taxes, $3.6 billion in property taxes, and $1.1 billion in personal income taxes.

Another way to measure the state and local taxes that undocumented immigrants pay is through their effective tax rate, which is the share of total income paid in taxes… Undocumented immigrants’ nationwide average effective tax rate is an estimated 8 percent. To put this in perspective, the top 1 percent of taxpayers pay an average nationwide effective tax rate of just 5.4 percent.”

Mar. 2017