Immigrants regardless of legal status contribute their share – and then some
It bears repeating every Tax Day: our immigrant neighbors regardless of legal status are not only essential threads in the fabric of America, they make vast financial contributions that help sustain our public schools, libraries, fire departments, and essential federal programs like Social Security, Medicare, and unemployment insurance to the benefit of us all.
$651.9 BILLION: The amount that immigrants overall paid through their tax contributions in 2023, including $419.8 BILLION in federal tax contributions and $232.1 BILLION in local and state tax contributions, according to research from the American Immigration Council (AIC).
“In the United States, immigrants are more likely to be working-age than their U.S.-born counterparts,” researchers said. “This means they are more likely to be active in the labor force, allowing them to contribute to the economy not only as consumers but also as taxpayers, helping fund social services and programs like Medicare and Social Security.”
$215.8 BILLION: The amount that immigrants contributed to Social Security in 2023 according to AIC. Last year, the Center on Budget and Policy Priorities noted a Social Security trustees’ report highlighting how immigration actually “improves the trust fund’s solvency” for all. That report noted that higher levels of immigration “help the trust fund balances” while decreased levels will only “increase the funding shortfall.”
$58.7 BILLION: The amount that immigrants contributed to Medicare in 2023 according to AIC.
$96.7 BILLION: The amount that undocumented immigrants paid through their tax contributions in 2022, including $59.4 BILLION in federal tax contributions and $37.3 BILLION in local and state tax contributions, according to research from the Institute on Taxation and Economic Policy (ITEP).
“Six states raised more than $1 billion each in tax revenue from undocumented immigrants living within their borders,” researchers said. “California ($8.5 billion), Texas ($4.9 billion), New York ($3.1 billion), Florida ($1.8 billion), Illinois ($1.5 billion), and New Jersey ($1.3 billion).”
And, unlike the richest Americans in the country, these immigrant workers contribute more than their fair share. ITEP’s research found that across 40 states, “undocumented immigrants pay higher state and local tax rates than the top 1 percent of households living within their borders.”
$25.7 BILLION: The amount that undocumented immigrants contributed to Social Security in 2022 according to ITEP. While these contributors have helped sustain this literal lifeline for millions of elderly Americans, disabled Americans, and American children who have lost one or both parents, they’re ineligible for benefits unless they manage to find a way to adjust their immigration status.
$6.4 BILLION: The amount that undocumented immigrants contributed to Medicare in 2022 according to ITEP. Despite the billions in annual contributions, these workers are largely blocked from federally-funded healthcare services. U.S. law makes emergency room exceptions “limited only to those needed to stabilize an individual who is at risk of permanent injury or death,” AIC said.
$1.8 BILLION: The amount that undocumented immigrants contributed to unemployment insurance in 2022 according to ITEP. Once again, these contributors are blocked from receiving benefits despite paying into the system and being affected by many of the same factors that affect other workers, such as pandemics and economic downturns.
$11.5 BILLION: The amount that Deferred Action for Childhood Arrivals (DACA)-eligible immigrants paid through their tax contributions in 2023, including $6.6 BILLION in federal tax contributions and $4.9 BILLION in local and state tax contributions, according to AIC.
$31.2 BILLION: The amount that refugees paid through their tax contributions in 2023, including $19.9 BILLION in federal tax contributions and $11.4 BILLION in local and state tax contributions, according to AIC.
$5.2 BILLION: The amount that Temporary Protected Status (TPS) holders paid through their tax contributions in 2023, including $3.1 BILLION in federal tax contributions and $2.1 BILLION in local and state tax contributions, according to AIC.
Among these TPS holders is Ketlie Moise, an entrepreneur who worked two jobs to open her restaurant and is among the thousands of Haitian immigrants who helped revitalize Springfield, Ohio. “New Caribbean restaurants and food trucks have opened across south Springfield where once abandoned neighborhoods are now bustling with residents,” as The Guardian reported in 2024. Across the country, immigrant entrepreneurs have brought in $116.2 BILLION in total income, with nearly half of Fortune 500 companies counting immigrants or children of immigrants as founders, AIC said.
Ahead of Tax Day, it’s another important reminder that giving immigrants the security and freedom they need to succeed actually lifts up everybody.
