Undocumented Immigrants’ State & Local Tax Contributions

Taxes are due Monday. I know, contain your excitement.

The Institute on Taxation and Economic Policy is taking the moment to tell you about their report: Undocumented Immigrants’ State & Local Tax Contributions.

Don’t have time for the full 22 page report and its numerous tables? No problem. Report co-author Lisa Christensen Gee has a helpful summary in USA Today.

Here are some of the big takeaways:

• At the state and local level alone, undocumented immigrants nationwide collectively pay an estimated $11.64 billion each year in taxes. That total includes more than $6.9 billion in sales and excise taxes (from everyday purchases and utility expenses), $3.6 billion in property taxes (either directly as homeowners or indirectly through rent), and over $1 billion in personal income taxes.

• The best evidence suggests that at least 50% of undocumented immigrant households currently file income tax returns, and among those who don’t file, many still have taxes withheld from their paychecks.

• Uundocumented immigrants nationwide pay on average 8% of their incomes in taxes to state and local governments. In contrast, the top 1% of taxpayers nationwide pay on average just 5.4%.

• Creating a pathway to citizenship for the 11 million undocumented immigrants living in the United States and allowing them to work here legally would boost their current state and local tax contributions by more than $2.1 billion a year, The most significant revenue gain (50 percent) would come from the personal income tax, due to both increased earnings and full compliance with the tax code.

• If fully implemented, granting temporary immigration relief to these 5 million undocumented immigrants through DACA and DAPA would boost their current state and local tax contributions by more than $805 million.

-KitJ