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FACT BRIEF

Do undocumented immigrants pay taxes?

By Todd Butterworth
View this fact brief on The Nevada Independent
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YES

Undocumented immigrants pay sales, income and property taxes. In 2021, these 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.

Evidence suggests that at least 50% of undocumented immigrant households file income tax returns using Individual Tax Identification Numbers, which the IRS issues to encourage tax compliance among non-citizens. Even though they pay into Social Security, ITIN holders are not eligible to receive benefits unless they become citizens or lawful permanent residents.

Many undocumented immigrants who do not file income tax returns still have taxes deducted from their paychecks.

Granting undocumented immigrants legal status would increase the share of their paychecks that goes to taxes from 8% to 8.6%, according to the Institute on Taxation and Economic Policy.

In 2017, it was estimated Nevada’s undocumented immigrants paid $86 million in state and local taxes. 

This fact brief is responsive to conversations such as this one.
Sources
Immigration Impact How Undocumented Immigrants Pay Taxes and Contribute to the US Tax Base
Institute on Taxation and Economic Policy Undocumented Immigrants’ State & Local Tax Contributions
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The Nevada Independent
The Nevada Independent is a nonpartisan, nonprofit news and opinion website founded in 2017 by veteran political journalist and commentator Jon Ralston. The site and its supporting channels are focused on ethical, unbiased and transparent journalism. In general, we aim to gather and disseminate important public information and increase civic engagement. We are supported by corporate donations, memberships, event ticket sales and sponsorships and foundation grants. We disclose all our members and donors. Donors have no influence over our content, ever. The Nevada Independent is the dba for Nevada News Bureau, Inc., a 501(c)3 nonprofit founded in 2010 by Elizabeth Thompson, who now serves as one of The Nevada Independent's managing directors and its Editor.
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.