Undocumented immigrants in the U.S. pay more than $11 billion a year in state and local taxes, according to a new study by the Institute on Taxation and Economic Policy. In 42 states, undocumented immigrants pay in taxes a higher share of their income than do the wealthiest 1 percent in their respective states.
A common misconception is that undocumented immigrants avoid paying taxes. In fact, undocumented individuals pay sales and excise taxes, property taxes and, in some instances, personal income taxes. The study determined that at least 50 percent of undocumented households currently file income tax returns through the use of individual tax identification numbers, and many have taxes automatically deducted from their paychecks.