Across the country, immigrants, regardless of legal immigration status, make robust contributions that help sustain federal programs like Medicare and Social Security, fund schools and libraries, and boost the national economy. These immigrant households contribute significantly to their communities through state income taxes, purchases, and work in essential industries. Ahead of Tax Day, it’s necessary to shine a light on the contributions made by these families to the states they call home.
ARIZONA
“Arizona has a large population of immigrants, nearly half of whom are naturalized citizens,” the American Immigration Council (AIC) said. “Immigrants make up about one-sixth of Arizona’s labor force and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Arizona pay $2.9 billion in local and state taxes annually. In comparison, undocumented-led households pay $261.1 million in local and state taxes annually.
Arizona was also among the earliest states to show the damaging effects that anti-immigrant legislation has on local economies. In the months following the passage of S.B. 1070 in 2010, Arizona lost at least $45 million in hotel and lodging revenue, the American Civil Liberties Union said, also noting nearly 2,800 lost jobs, more than $250 million in lost economic output, and more than $9 million in lost state tax revenue in the time that followed. Most of S.B. 1070 would later be found unconstitutional by the courts.
FLORIDA
“Florida has long been home to a large number of immigrants, nearly 60 percent of whom are naturalized citizens,” AIC said. “Immigrants make up one-quarter of Florida’s labor force and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Florida pay $10.6 billion in local and state taxes annually. In comparison, undocumented-led households pay $703.6 million in local and state taxes annually.
Despite these immense contributions, Florida enacted the anti-immigrant S.B. 1718 bill, which hurt its economy by worsening existing labor shortages and scaring away immigrant workers critical to industries like agriculture and construction. The bill’s GOP supporters in the state legislature would eventually admit workers were “starting to move to Georgia and other states.” During one community meeting, a legislator who supported the bill begged workers to stay. Ultimately, the law could lead to billions in GDP losses to the state.
GEORGIA
“Georgia has a sizable community of immigrants, half of whom are naturalized citizens,” AIC said. “Immigrants make up one-eighth of Georgia’s labor force and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Georgia pay $3.9 billion in local and state taxes annually. In comparison, undocumented-led households pay $353.9 million in local and state taxes annually.
Mirroring anti-immigrant legislation in Arizona, Georgia passed a “papers please”-style law in 2011 that saw major economic consequences, particularly in agriculture. “Crackdown on illegal immigrants left crops rotting in Georgia fields, ag chief tells US lawmakers,” read one headline. The labor shortage resulting from H.B. 87 led to an estimated $140 million in agricultural losses. Much like S.B. 1070, much of Georgia’s legislation was later found unconstitutional. Despite this history, state Republicans have cynically seized on a local tragedy to again resurrect anti-immigrant legislation.
IOWA
In Iowa, immigrant-led households pay $630.6 million in local and state taxes annually, while undocumented-led households pay $50.5 million in local and state taxes annually. “While relatively few in number, immigrants help support Iowa’s economy in many ways,” AIC said, helping combat labor shortages due to aging and population decline across rural Iowa. This is particularly notable in several state industries, including dairy and meatpacking.
When Tyson Foods offered double the state’s minimum wage in efforts to attract meatpacking plant workers, employers struggled to find U.S.-born Americans to fill these oftentimes grueling and dangerous positions. Immigrants have helped fill these gaps, today representing more than 45% of workers in this industry. But while nativism is bad economics in Iowa, Republicans there have passed a version of anti-immigrant bills seen in other states.
LOUISIANA
“Louisiana is home to a small but vital immigrant community. About 4.3 percent of the state’s residents are foreign-born, and 2.0 percent of its U.S.-born residents live with at least one immigrant parent,” AIC said. “Immigrants make up 5.2 percent of the Louisiana labor force and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Louisiana pay $534.1 million in local and state taxes annually. In comparison, undocumented-led households pay $64.5 million in local and state taxes annually.
While immigrant workers are critical to the state’s famous seafood industry, our nation’s outdated immigration system hasn’t kept up with the demand. “We’re at a point now where the processing plants can’t get enough peelers,” longtime Henderson Mayor Sherbin Collette said in 2017. “Without immigrants, we wouldn’t have crawfish season, it’s that critical.” Despite immigrants’ critical roles, Louisiana Republicans have also introduced anti-immigrant legislation.
MICHIGAN
“Michigan has a sizable immigrant community. About 6.9 percent of the state’s residents are foreign-born, and 3.6 percent of its U.S.-born residents live with at least one immigrant parent,” AIC said. “Immigrants make up 8.4 percent of Michigan’s labor force, immigrants support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Michigan pay $2.4 billion in local and state taxes annually, while undocumented-led households pay $123.2 million in local and state taxes annually.
Immigrants in the state have also been critical in helping revitalize communities and cities in the Midwest impacted by the economic downturn of the Great Recession. New American Economy said, “Recent influxes of immigrants have helped to mitigate some of these negative effects, providing businesses with the customers they need and governments with a healthy tax base.” New American Economy’s research also found that immigrants there were 18.6% more likely to work, and thus contribute, than Michiganders born in the state.
NORTH CAROLINA
“North Carolina has a large population of immigrants. About 8.3 percent of the state’s residents are foreign-born, and 5.1 percent of its U.S.-born residents live with at least one immigrant parent,” AIC said. “Immigrants make up one-tenth of North Carolina’s labor force and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in North Carolina pay $2.8 billion in local and state taxes annually. In comparison, undocumented-led households pay $310.9 million in local and state taxes annually.
The 2023 labor and economic analysis from the North Carolina Chamber of Commerce found that immigrants have been key to the success of several essential industries in the state. In construction, immigrants comprise nearly 30% of workers, while nearly one in four agricultural workers are immigrants. “As the state continues to wrestle with tight labor market conditions across various industries, immigrants will serve a vital role in meeting increased employer demand for labor.”
PENNSYLVANIA
“Pennsylvania is home to a large population of immigrants. About 7.3 percent of the state’s residents are foreign-born, and 3.6 percent of its U.S.-born residents live with at least one immigrant parent,” AIC said. “Immigrants make up nearly 1 in 11 Pennsylvanian workers and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Pennsylvania pay $3.9 billion in local and state taxes annually. In comparison, undocumented-led households pay $196.3 million in local and state taxes annually.
“Foreign-born workers are overrepresented in nearly half of all industries in Pennsylvania,” including in frontline industries, the Pennsylvania Budget and Policy Center said in 2021. “While accounting for more than 8% of the civilian workforce in Pennsylvania, immigrants make up almost 13% of workers in the agricultural industry. Additionally, immigrants represent almost 10% of workers in transportation, arts and food services, and manufacturing in the Commonwealth.” Despite their vital roles in Pennsylvania’s economy, state Republicans have recently introduced anti-immigrant legislation.
TEXAS
Texas is home to one of the largest and most vibrant immigrant populations in the nation, including the second-largest population of Deferred Action for Childhood Arrivals (DACA) recipients. “Texas has a long history of immigration. Immigrants now account for over one-sixth of the state’s total population, and 12.3 percent of its U.S.-born residents live with at least one immigrant parent,” AIC said. “Immigrants make up more than one-fifth of Texas’s labor force and support the local economy in many ways,” particularly through their tax contributions. AIC’s report found that immigrant-led households currently living in Texas pay an astounding $15 billion in local and state taxes annually. In comparison, undocumented-led households pay an impressive $1.7 billion in local and state taxes annually, second only to California.
But despite these enormous contributions, Texas Republicans have been engaged in a wasteful and ineffective anti-immigrant crackdown that has recently resulted in one of the harshest bills enacted by any state legislature in recent memory. If allowed to go forward by the courts, S.B. 4, also known as the “show me your papers” law, would threaten to target and violate the civil and human rights of both immigrant communities and U.S. citizens alike. Following a recent court hearing, the large takeaway was whether or not “show me your papers” went “too far,” as admitted by Texas’ Solicitor General arguing in favor of S.B. 4. In addition, the corrupt Attorney General of Texas, Ken Paxton is leading the legal effort to end DACA, among other pro-immigrant policies.
VIRGINIA
“Virginia has a sizable immigrant community. About 12.3 percent of the state’s residents are foreign-born, and 6.7 percent of its U.S.-born residents live with at least one immigrant parent,” AIC said. “Immigrants make up 15.6 percent of Virginia’s labor force and support the local economy in many ways,” including their tax contributions. AIC’s report found that immigrant-led households currently living in Virginia pay $4.6 billion in local and state taxes annually. In comparison, undocumented-led households pay $274.7 million in local and state taxes annually.
“Behind only D.C., the state’s immigrant population has the highest rate of employment in the professional, scientific, management, and administrative service industry,” The Commonwealth Institute said. Virginia immigrants also lead in business creation. “Since 2007, the number of immigrant owners of incorporated businesses in Virginia has increased by 51%, while the number of U.S.-born business owners has decreased 4%.”
WISCONSIN
“Wisconsin has a sizable community of immigrants, half of whom are naturalized citizens,” AIC said. “About 5.1 percent of the state’s residents are foreign-born, and 2.9 percent of its U.S.-born residents live with at least one immigrant parent.” These families pay $1.1 billion in local and state taxes annually, while undocumented-led households pay $103.4 million in local and state taxes annually.
“Immigrants make up 6.4 percent of Wisconsin’s labor force and support the local economy in many ways, accounting for 7.6 percent of entrepreneurs, 7.8 percent of STEM workers, and 19.8 percent of agricultural workers,” AIC continued. This is true in the state’s dairy industry, with one survey estimated that just over half of Wisconsin’s dairy workers are immigrant-born. It’s an open secret that many of these essential workers lack legal immigration status. Without them, the state’s famous dairy industry “would collapse,” the Milwaukee Journal Sentinel reported in 2019.
THE U.S.
Across the U.S., immigrant-led households paid $524.7 billion in total taxes in 2021, a slight increase since 2019,” Immigration Impact said last year. “This includes $346.3 billion in federal income taxes, and $178.4 billion in state and local taxes.” That same year, undocumented-led households “contributed $30.8 billion in total taxes, including $18.6 billion in federal income taxes and $12.2 billion in state and local taxes, based on data from the American Community Survey,” Immigration Impact said.
Undocumented workers also contribute billions to Social Security, paying an estimated $13 billion into the system annually. So rather than “take” benefits, as critics of immigration baselessly allege, undocumented immigrants are subsidizing you and me. The facts don’t lie: immigration is good for families, it’s good for our economy and businesses, and it’s key to our success. This is true in the states and all across the nation.
