Undocumented Immigrants’ State & Local
Tax Contributions
Institute on Taxation & Economic Policy
Updated March 2017

Lisa Christensen Gee
Matthew Gardner
Misha E. Hill
Meg Wiehe

About The Institute on Taxation & Economic Policy
The Institute on Taxation and Economic Policy (ITEP) is a non-profit, non-partisan 501 (c) 3 organization
that produces timely, accessible, and sound analyses on federal, state, and local tax policy issues. ITEP's
research helps inform policy makers, advocates, the media and general public about the fairness,
adequacy, and sustainability of existing tax structures and how proposed tax changes would impact
revenues and taxpayers across the income spectrum.

Acknowledgments

ITEP extends special thanks to David Dyssegaard Kallick at the Fiscal Policy Institute, Michael Leachman
at the Center on Budget and Policy Priorities, Jeanne Batalova at the Migration Policy Institute, and Tanya
Broder and Kamal Essaheb at the National Immigration Law Center for their guidance on this report.

THE INSTITUTE ON TAXATION AND ECONOMIC POLICY (ITEP)

1616 P. Street NW, Suite 200  Washington, DC 20036  202.299.1066 www.itep.org

 Public debates over federal immigration
reform, specifically around
undocumented immigrants, often suffer
from insufficient and inaccurate
information about the tax contributions of
undocumented immigrants, particularly
at the state level. The truth is that
undocumented immigrants living in the
United States pay billions of dollars each
year in state and local taxes. Further,
these tax contributions would increase
significantly if all undocumented
immigrants currently living in the United
States were granted a pathway to
citizenship as part of a comprehensive
immigration reform. Or put in the
reverse, if undocumented immigrants are
deported in high numbers, state and local
revenues could take a substantial hit.

Who Are Undocumented Immigrants?
Undocumented Immigrants are:

 Diverse—Not all undocumented immigrants are from Mexico.
While most are from the Americas, many parts of the U.S. are home
to immigrants from Asia and the Pacific Islands, Africa, and Europe.
 Families—Most families have mixed legal status, such as one parent
with legal immigration status, one parent without documentation,
and a child with U.S. citizenship.
 Concentrated—Although there are undocumented populations in
each state, 1 in 6 live in just 20 metro areas. California, Florida, New
Jersey, New York, and Texas are the states with the largest
populations.
 Contributing to our Communities—Over 60% have lived in the
U.S. for more than a decade. Labor force participation is high and
crime rates are lower than that of U.S. born residents.
 Not Stealing Jobs—Undocumented immigrants largely work in the
positions that an aging and more educated U.S. workforce is unable
to fill.
 DREAMers—Many undocumented immigrants were brought to
the U.S. as children. DREAMers must meet education requirements
and pass an extensive background screening. They were raised in the
U.S., and represent the potential of the next generation.

Accurate information about the tax
contributions of undocumented
immigrants is needed now more than
ever. Divisive and objectionable rhetoric
has not tempered in the early months of
the Trump administration. Policies
adopted and supported by the new administration are haphazard in design and impact; they characterize
undocumented families as criminals and encourage indiscriminate deportations. Good policy is informed
policy. Just like the horrendous impact of breaking up families should not be ignored, neither should the
lost tax contributions from isolating or deporting undocumented immigrants.

To better inform the ongoing debates on immigration policy reform, this report provides state-by-state
and national estimates on the current state and local tax contributions of the 11 million undocumented
immigrants living in the United States as of 2014, and the increase in contributions if all these taxpayers
were granted legal status as part of comprehensive reform. 1

Key Findings:
♦

♦

♦

Undocumented immigrants contribute significantly to state and local taxes, collectively paying an estimated
$11.74 billion a year. 2 Contributions range from just over $550,000 in Montana with an estimated
undocumented population of 1,000 to more than $3.1 billion in California, home to more than 3 million
undocumented immigrants.
Undocumented immigrants nationwide pay on average an estimated 8 percent of their incomes in state and
local taxes (this is their effective state and local tax rate). To put this in perspective, the top 1 percent of
taxpayers pay an average nationwide effective tax rate of just 5.4 percent. 3
Granting legal status to all undocumented immigrants in the United States as part of a comprehensive
immigration reform and allowing them to work legally would increase their state and local tax contributions by
an estimated $2.18 billion a year. Their nationwide effective state and local tax rate would increase to 8.6
percent.

Institute on Taxation and Economic Policy 2

 Undocumented Immigrants Pay State and Local Taxes: Current Contributions
Like other people living and working in the United States, undocumented immigrants pay state and local
taxes. They pay sales and excise taxes when they purchase goods and services (for example, on utilities,
clothing and gasoline). They pay property taxes directly on their homes or indirectly as renters. Many
undocumented immigrants also pay state income taxes. The best evidence suggests that at least 50
percent of undocumented immigrant households currently file income tax returns using Individual Tax
Identification Numbers (ITINs), and many who do not file income tax returns still have taxes deducted
from their paychecks. 4
Collectively, undocumented immigrants in the United States pay an estimated total of $11.74 billion in
state and local taxes a year (see Table 1 for state-by-state estimates). This includes more than $7 billion
in sales and excise taxes, $3.6 billion in property taxes, and $1.1 billion in personal income taxes.

Another way to measure the state and local taxes that undocumented immigrants pay is through their
effective tax rate, which is the share of total income paid in taxes. The effective tax rate is useful for more
accurate state-to-state comparisons because it accounts for differences between states’ tax structures
and population size. Undocumented immigrants’ nationwide average effective tax rate is an estimated 8
percent. To put this in perspective, the top 1 percent of taxpayers pay an average nationwide effective tax
rate of just 5.4 percent. 5

Table 1: Undocumented Immigrants' State and Local Tax Contributions
Current vs. Full Legal Status for All Undocumented Immigrants

Current State and Local Taxes

State and Local Taxes if
Granted Full Legal Status

Tax Change

Alabama

$62,312,000

$80,061,000

+$17,749,000

Montana

$548,000

$762,000

+$213,000

Alaska

$4,043,000

$4,448,000

+$404,000

Nebraska

$39,800,000

$48,177,000

+$8,376,000
+$8,610,000

State

State

Current State and Local Taxes

State and Local Taxes if
Granted Full Legal Status

Tax Change

Arizona

$213,574,000

$252,958,000

+$39,384,000

Nevada

$86,101,000

$94,712,000

Arkansas

$62,767,000

$77,166,000

+$14,399,000

New Hampshire

$7,236,000

$8,005,000

+$770,000

California

$3,199,394,000

$3,653,985,000

+$454,591,000

New Jersey

$587,415,000

$661,130,000

+$73,716,000

Colorado

$139,524,000

$172,250,000

+$32,726,000

New Mexico

$67,743,000

$75,756,000

+$8,013,000

Connecticut

$124,701,000

$145,284,000

+$20,583,000

New York

$1,102,323,000

$1,349,476,000

+$247,153,000
+$93,378,000

Delaware

$13,532,000

$19,694,000

+$6,162,000

North Carolina

$277,402,000

$370,780,000

Dist. of Col.

$31,765,000

$38,731,000

+$6,966,000

North Dakota

$2,844,000

$3,263,000

+$419,000

Florida

$598,678,000

$658,546,000

+$59,868,000

Ohio

$83,247,000

$108,786,000

+$25,538,000

Georgia

$351,718,000

$455,581,000

+$103,863,000

Oklahoma

$84,765,000

$104,648,000

+$19,884,000

Hawaii

$32,343,000

$42,750,000

+$10,408,000

Oregon

$80,775,000

$119,365,000

+$38,590,000
+$51,372,000

Idaho

$28,613,000

$34,557,000

+$5,944,000

Pennsylvania

$134,872,000

$186,244,000

Illinois

$758,881,000

$917,370,000

+$158,490,000

Rhode Island

$31,154,000

$37,564,000

+$6,410,000

Indiana

$92,200,000

$120,900,000

+$28,701,000

South Carolina

$67,753,000

$86,195,000

+$18,442,000

Iowa

$36,728,000

$45,570,000

+$8,842,000

South Dakota

$5,338,000

$5,872,000

+$534,000

Kansas

$67,843,000

$78,897,000

+$11,054,000

Tennessee

$107,465,000

$118,251,000

+$10,786,000

Kentucky

$36,629,000

$52,702,000

+$16,073,000

Texas

$1,560,896,000

$1,716,985,000

+$156,090,000

Louisiana

$67,991,000

$83,188,000

+$15,197,000

Utah

$69,770,000

$91,255,000

+$21,485,000

Maine

$4,367,000

$5,525,000

+$1,158,000

Vermont

$2,936,000

$3,411,000

+$475,000

Maryland

$332,248,000

$425,779,000

+$93,531,000

Virginia

$255,965,000

$355,924,000

+$99,959,000
+$31,662,000

Massachusetts

$184,605,000

$240,773,000

+$56,168,000

Washington

$316,624,000

$348,287,000

Michigan

$86,692,000

$113,910,000

+$27,217,000

West Virginia

$5,112,000

$6,811,000

+$1,699,000

Minnesota

$83,192,000

$102,646,000

+$19,453,000

Wisconsin

$71,792,000

$91,691,000

+$19,899,000

Mississippi

$22,684,000

$28,028,000

+$5,344,000

Wyoming

Missouri

$48,897,000

$63,435,000

+$14,538,000

All States

$4,165,000

$4,582,000

+$417,000

$11,739,961,000

$13,912,665,000

+$2,172,703,000

Institute on Taxation and Economic Policy 3

 Granting Legal Status to All Undocumented Immigrants Would Boost Their
State and Local Tax Contributions
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 $2.18 billion a year (see Table 1). Personal income tax collections would increase by $1.1
billion a year. Sales and excise taxes would increase by $702 million, and property taxes would grow by
$362 million. As a result, the overall state and local taxes paid by undocumented immigrants as a share of
their income would increase from 8 percent to 8.6 percent.
The most significant revenue gain would come from the personal income tax, due to both increased
earnings and full compliance with the tax code. 6 Multiple studies have shown that legal immigrants have
higher wages than undocumented immigrants, thus gaining legal status could lead to a boost in wages.
The wage boost is in part due to better job opportunities that would be made available to workers with
legal status and also in part to an increased access to higher-level skills and better training. Most
comprehensive reform measures to date have included strong incentives or requirements for
undocumented immigrants granted legal status to fully comply with tax law.

Conclusion

Undocumented immigrants make considerable tax contributions. Like other immigrants and U.S. citizens
they purchase goods and services, work, and live across the country. Proposals to remove immigrants
ignore their many contributions. In a time when most states are facing revenue shortages, the potential
budgetary impacts of mass deportation merits careful consideration. States could lose an estimated
$11.74 billion in revenue if all undocumented immigrants were removed. In addition to the many
humanitarian, public health, and moral arguments for a pathway to legal citizenship and against mass
deportations, there is also a state fiscal component that should not be ignored.

See Appendix 1 for state-by-state estimates of the current and post-reform state and local tax
contributions of the total undocumented immigrant population. The appendix includes effective tax rates
and totals for sales and excise, personal income, and property taxes.

Methodology
While the spending and income behavior of undocumented immigrant families is not as well documented
as that of US citizens, the estimates in this report represent a best approximation of the taxes families
headed by undocumented immigrants likely pay.
The ITEP methodology used to calculate the current and potential tax contribution of undocumented
immigrants uses five main data points:
1. Estimated undocumented immigrant population in each state
2. Average size of undocumented immigrant families/taxpaying units
3. Range of annual undocumented immigrant family/taxpayer income in each state

Institute on Taxation and Economic Policy 4

 4. Estimated number of undocumented immigrants who are homeowners
5. Estimated effective tax rates (taxes as share of income) for sales, income, and property taxes paid by
low- and moderate-income families in each state

Additional assumptions are made (and described below) about the change in tax contributions that
would occur if all 11 million undocumented immigrants were granted legal status under comprehensive
immigration reform.
See Appendix 2 for state-by-state details on data used to assist in calculating the state and local tax
contributions.

1. Estimated undocumented immigrant population in each state

Estimates of each state’s undocumented immigrant population are from the Migration Policy Institute
(MPI). 7 According to MPI, an estimated 11,090,000 undocumented immigrants resided in the U.S. as of
2014 (an estimate that is only 13,000 lower than MPI’s estimate from 2013 data).

2. Average size of undocumented immigrant families/taxpaying units

The Pew Research Center calculated a nationwide estimate of the number of people per undocumented
immigrant family. The most recent estimate, 2.29, is used to find an estimated number of undocumented
families (or taxpaying units) by state. 8 ITEP divided population estimates for each state by the average
family size to find an estimated number of undocumented families/taxpaying units living in each state.

3. Range of annual undocumented immigrant family/taxpayer income in each state

Estimates of the income distribution of undocumented families are from MPI data on the number of
undocumented immigrants in five discrete income groups based on the 2014 federal poverty level. 9 ITEP
used the midpoint of the income ranges in each group as an estimate of average income within each
group and multiplied by the number of families/taxpaying units in each group to calculate aggregate
income in these groups.

4. Estimated number of undocumented immigrants who are homeowners

ITEP used MPI data on undocumented families’ homeownership rates for each state. We then calculated
separate property tax incidence analyses for homeowners and renters in each state. Applying the
homeowner effective tax rates to the homeowner population and the renter tax rates to the renter
population yielded a combined property tax estimate for all undocumented families in each state. 10

5. Estimated effective tax rates (taxes as share of income) for sales, income, and property taxes paid by low- and
moderate-income families in each state 11

ITEP’s microsimulation computer model is a sophisticated program that applies the state and local tax
laws in each state (including sales, excise, income, and property tax laws) to a statistically valid database
of tax returns to generate estimates of the effective tax rates paid by taxpayers at various income levels
under state and local tax law in place as of December 31, 2014. In January of 2015, ITEP released the 5th
edition of Who Pays? which estimates the effect of the state and local tax laws as of January 2015 on

Institute on Taxation and Economic Policy 5

 taxpayers at 2012 income levels. This report applies effective tax rates calculated in the 2015 Who Pays?
report to the undocumented population with one exception. The effective tax rates in seven states:
California, Colorado, Maine, Massachusetts, New Jersey, Oklahoma, and Rhode Island were slightly
modified for the analysis to include the enactment, enhancement, or reduction of state EITCs in 2015 and
2016 (this change applies only to the analysis granting legal status and does not impact the current tax
contributions).

The following assumptions were made to calculate the sales, income, and property taxes of the undocumented
immigration population:
♦

♦

♦

Sales tax: Sales taxes are collected by retailers every time a purchase is made on a taxable good or
service. It is reasonable to assume that undocumented immigrants pay sales tax at similar rates to U.S.
citizens and legal immigrants with similar incomes. This analysis adjusts the estimated annual
incomes for each state downward by 10 percent for purposes of calculating the sales tax paid to
account for remittances. Research shows that undocumented immigrants send about 10 percent of
their income to families in their countries of origin, so this portion of undocumented taxpayers’
income is unavailable for taxable consumption. 12

Income tax: Various studies have estimated between 50 and 75 percent of undocumented
immigrants currently pay personal income taxes using either false social security (SSN) or individual
tax identification (ITIN) numbers. 13 This analysis assumes a 50 percent compliance rate for current
taxes and 100 percent post-reform granting legal status to all undocumented immigrants.

Undocumented immigrants are currently ineligible to receive the federal Earned Income Tax Credit
(EITC) and state versions of the credit because they lack the legal authority to work in the U.S.
Accordingly, the impact of state EITCs has been removed from the current personal income tax
estimates. This has the effect of increasing the effective income tax rates paid by these undocumented
taxpayers under current law.
Property tax: The first step in calculating property taxes was to identify the share of undocumented
immigrant families who are homeowners or renters in each state. This analysis used state-by-state
data from the MPI to estimate homeownership rates for undocumented immigrants in each state. The
model assumes that for renters, half of the cost of the property tax paid initially by owners of rental
properties is passed through to renters.

Additional indicators used to make calculations for anticipated state and local tax changes if legal status is granted
as part of comprehensive immigration reform:
♦

Wage boost: This study assumes that having the authority to work legally in the United States would
increase undocumented immigrants’ wages and thus increase the taxes paid by those same
immigrants, based on research by the Fiscal Policy Institute. Examining a number of studies on
immigrant wages, this research consistently found that legal immigrants had higher wages than
undocumented immigrants and gaining legal status could boost wages anywhere between 6 and 15
percent. 14 A Congressional Budget Office report on the economic impact of immigration reform
estimated the eventual wage boost to be 12 percent. 15 This study assumes a conservative estimate of
a 10 percent wage hike by granting legal status to all 11 million undocumented immigrants. An

Institute on Taxation and Economic Policy 6

 ♦

♦

increase in income would also contribute to a slight increase in the sales, income, and property tax
payments of the currently undocumented immigrant population.

Personal income tax compliance: As explained above, current estimates of undocumented
immigrants’ income tax compliance rates range from 50 to 75 percent. To calculate the anticipated
income tax gain from allowing undocumented immigrants to work in the U.S. legally, this analysis
assumes full compliance with state personal income tax laws post-reform given the strong incentives
for tax compliance likely to be included in a comprehensive reform measure. It is important to note
that the same tax rules and provisions that apply to the general population will apply to
undocumented immigrants filing income taxes.

Earned Income Tax Credit eligibility: Post-reform, the study assumes that working immigrants
granted the legal right to live and work in the U.S. and who are otherwise eligible for the EITC will
claim the credit. This analysis also assumes that working immigrants meeting EITC eligibility criteria
and granted the legal right to work under comprehensive immigration reform will claim the state
versions of the credit. The states with permanent EITCs included in this report are: California,
Colorado, Connecticut, District of Columbia, Delaware, Iowa, Illinois, Indiana, Kansas, Louisiana,
Massachusetts, Maryland, Maine, Michigan, Minnesota, Nebraska, New Jersey, New Mexico, New York,
Ohio, Oklahoma, Oregon, Rhode Island, Virginia, Vermont, and Wisconsin. This study includes the
impact of the newly enacted EITCs in California and Colorado, improvements made to EITCs in Maine,
Massachusetts, New Jersey, and Rhode Island in 2015 and 2016, and a cut in Oklahoma’s EITC.

Changes from ITEP’s February 2016 Undocumented Immigrants’ State & Local
Tax Contributions Report
The analysis presented in this report is an update to an ITEP report published in 2016. The 2017 report
uses 2014 estimates on the undocumented immigrant population (size, income, homeownership, and
population impacted by the executive actions) whereas the 2016 report used 2013 data. Most notably,
the number of undocumented immigrants remained relatively flat. It declined by only about 13,000
between 2013 and 2014, however the amount of estimated income rose slightly. The steady population
and slight changes in income led to a small increase in the total amount of state and local taxes
undocumented immigrants pay in the 2017study compared to the 2016 study.

Migration Policy Institute (MPI) analysis of U.S. Census Bureau data from the 2010-2014 ACS pooled, and the 2008 Survey of
Income and Program Participation (SIPP) by Colin Hammar and James Bachmeier of Temple University and Jennifer Van Hook
of Pennsylvania State University, Population Research Institute.
2 See the methodology section for more information on the calculation of estimated undocumented immigrant state and local
tax payments.
3 Davis, Carl, et al. “Who Pays? A Distributional Analysis of the Tax Systems in All 50 States.” Who Pays?, 5th ed., Institute on
Taxation and Economic Policy, Jan. 2015, www.whopays.org.
4See this report’s methodology section for more information about current personal income tax compliance.
5 Institute on Taxation and Economic Policy (see footnote 3).
1

Institute on Taxation and Economic Policy 7

 See this report’s methodology for a detailed description of wage boost and tax compliance assumptions applied to the change
in state and local tax contributions post-reform.
7 Migration Policy Institute (see footnote 1)
8 Passel, Jeffrey S., and D’Vera Cohn. “Unauthorized Immigrant Population, National and State Trends, 2010.” Pew Hispanic,
Pew Research Center, 1 Feb. 2011, www.pewhispanic.org/2011/02/01/unauthorized-immigrant-population-brnational-andstate-trends-2010/.
9 Migration Policy Institute (see footnote 1)
10 Ibid.
11 Institute on Taxation and Economic Policy (see footnote 3)
12 See among others: Orozco, Manuel. “Remittances to Latin America and the Caribbean: Issues and Perspectives on
Development.” Summit of the Americas, Organization of American States, Sept. 2004, www.summitamericas.org/Panels/Panel_on_Remittances/INF5_Remesas_Orozco_ENG.pdf.
13 See among others: Feinleib, Joel, and David Warner. “Issue Brief #1: The Impact of Immigration on Social Security and the
National Economy.” Social Security Advisory Board, Social Security Advisory Board, Dec. 2005,
www.ssab.gov/Portals/0/OUR_WORK/REPORTS/Impact%20of%20Immigration%20on%20Social%20Security%20Brief_200
5.pdf; Singer, Paula, and Linda Dodd-Major. “Identification Numbers and U.S. Government Compliance Initiatives.” Tax
Analysts, 20 Sept, 2004; and Cornelius, Wayne, and Jessica Lewis. Impacts of Border Enforcement on Mexican Migration: The
View from Sending Communities, La Jolla, Calif.: University of California at San Diego, Center for Comparative Immigration
Studies, 2007.
14 Kallick, David Dyssegaard. “Three Ways Immigration Reform Would Make the Economy More Productive.” Fiscal Policy
Institute, Fiscal Policy Institute, 4 Jun., 2013, fiscalpolicy.org/wp-content/uploads/2013/06/3-ways-reform-would-improveproductivity.pdf (see Appendix A: A Review of the Literature on Legalization and Earnings, and also this report’s methodology
section for more information on the wage effects of granting legal status to the entire undocumented population).
15 “Economic Impact of S. 744, Border Security, Economic Opportunity, and Immigration Modernization Act.” Congressional
Budget Office, Congressional Budget Office, Jun. 2013, www.cbo.gov/sites/default/files/113th-congress-20132014/reports/44346-Immigration.pdf.
6

Institute on Taxation and Economic Policy 8

 Appendix 1: Detailed State and Local Tax Contributions of Total Undocumented Immigrant Population
Current vs. Full Legal Status for All Undocumented Immigrants
Sales and Excise Tax Total Personal Income Tax Total

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Dist. of Col.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana

Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status

$45,311,000
$49,842,000
$1,877,000
$2,064,000
$144,232,000
$158,655,000
$47,382,000
$52,120,000
$1,970,679,000
$2,167,746,000
$82,211,000
$90,433,000
$58,469,000
$64,316,000
$4,794,000
$5,274,000
$19,467,000
$21,414,000
$463,955,000
$510,351,000
$214,416,000
$235,857,000
$20,571,000
$22,628,000
$17,056,000
$18,762,000
$351,926,000
$387,119,000
$55,396,000
$60,936,000
$21,333,000
$23,466,000
$43,049,000
$47,354,000
$20,136,000
$22,150,000
$52,210,000
$57,431,000

$10,471,000
$23,036,000
No Income Tax
$16,388,000
$36,054,000
$7,384,000
$16,244,000
$157,883,000
$308,322,000
$21,429,000
$42,346,000
$15,551,000
$25,219,000
$4,662,000
$9,937,000
$6,647,000
$11,101,000
No Income Tax
$62,447,000
$137,383,000
$6,521,000
$14,347,000
$2,802,000
$6,165,000
$95,945,000
$188,141,000
$19,802,000
$41,263,000
$5,974,000
$11,741,000
$6,473,000
$11,390,000
$11,282,000
$24,821,000
$8,536,000
$17,788,000

Property Tax Total
$6,530,000
$7,183,000
$2,167,000
$2,383,000
$52,954,000
$58,250,000
$8,002,000
$8,802,000
$1,070,833,000
$1,177,916,000
$35,883,000
$39,471,000
$50,682,000
$55,750,000
$4,076,000
$4,483,000
$5,651,000
$6,216,000
$134,722,586
$6,215,742
$74,856,000
$82,341,000
$5,251,000
$5,776,000
$8,754,000
$9,630,000
$311,009,000
$342,110,000
$17,001,000
$18,701,000
$9,420,000
$10,362,000
$18,322,000
$20,154,000
$5,211,000
$5,732,000
$7,244,000
$7,969,000

Undocumented
Top 1% Effective Tax Rate
Total State and Local Taxes Immigrant Effective Tax
(All Taxpayers)1
Rate
$62,312,000
$80,061,000
$4,043,000
$4,448,000
$213,574,000
$252,958,000
$62,767,000
$77,166,000
$3,199,394,000
$3,653,985,000
$139,524,000
$172,250,000
$124,701,000
$145,284,000
$13,532,000
$19,694,000
$31,765,000
$38,731,000
$598,677,875
$38,731,097
$351,718,000
$455,581,000
$32,343,000
$42,750,000
$28,613,000
$34,557,000
$758,881,000
$917,370,000
$92,200,000
$120,900,000
$36,728,000
$45,570,000
$67,843,000
$78,897,000
$36,629,000
$52,702,000
$67,991,000
$83,188,000

7.2%
8.4%
4.3%
4.3%
8.0%
8.6%
9.1%
10.1%
8.0%
8.3%
6.6%
7.4%
7.6%
8.0%
3.9%
5.1%
7.3%
8.1%
7.3%
7.3%
7.3%
8.6%
8.9%
10.7%
7.0%
7.7%
10.3%
11.3%
8.1%
9.7%
7.9%
8.9%
8.2%
8.7%
6.9%
9.0%
7.8%
8.7%

3.8%
2.5%
4.6%
5.6%
8.7%
4.6%
5.3%
4.8%
6.4%
1.9%
5.0%
7.0%
6.4%
4.6%
5.2%
6.0%
3.6%
6.0%
4.2%

Institute on Taxation and Economic Policy 9

 Appendix 1: Detailed State and Local Tax Contributions of Total Undocumented Immigrant Population
Current vs. Full Legal Status for All Undocumented Immigrants
Sales and Excise Tax Total Personal Income Tax Total

Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon

Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status

$2,605,000
$2,865,000
$168,717,000
$185,589,000
$81,821,000
$90,003,000
$46,699,000
$51,368,000
$49,713,000
$54,684,000
$17,180,000
$18,898,000
$28,660,000
$31,526,000
$168,000
$185,000
$21,557,000
$23,713,000
$65,830,000
$72,413,000
$1,987,000
$2,186,000
$265,945,000
$292,540,000
$50,098,000
$55,108,000
$564,962,000
$621,458,000
$163,163,000
$179,479,000
$2,214,000
$2,435,000
$47,540,000
$52,294,000
$57,647,000
$63,411,000
$15,292,000
$16,821,000

$681,000
$1,470,000
$77,970,000
$146,073,000
$42,471,000
$84,426,000
$18,499,000
$38,897,000
$14,796,000
$27,409,000
$2,796,000
$6,152,000
$8,771,000
$19,297,000
$144,000
$316,000
$4,778,000
$9,652,000
No Income Tax
No Income Tax on Wages
$49,148,000
$69,036,000
$3,956,000
$5,590,000
$182,675,000
$337,864,000
$59,671,000
$131,276,000
$123,000
$270,000
$15,649,000
$34,427,000
$10,935,000
$23,436,000
$29,831,000
$63,327,000

Property Tax Total
$1,081,000
$1,190,000
$85,561,000
$94,118,000
$60,313,000
$66,344,000
$21,495,000
$23,645,000
$18,684,000
$20,552,000
$2,708,000
$2,978,000
$11,466,000
$12,613,000
$237,000
$260,000
$13,465,000
$14,812,000
$20,271,000
$22,298,000
$5,207,000
$5,727,000
$272,322,000
$299,554,000
$13,689,000
$15,058,000
$354,686,000
$390,154,000
$54,568,000
$60,025,000
$507,000
$558,000
$20,059,000
$22,064,000
$16,183,000
$17,801,000
$35,652,000
$39,217,000

Undocumented
Top 1% Effective Tax Rate
Total State and Local Taxes Immigrant Effective Tax
(All Taxpayers)1
Rate
$4,367,000
$5,525,000
$332,248,000
$425,779,000
$184,605,000
$240,773,000
$86,692,000
$113,910,000
$83,192,000
$102,646,000
$22,684,000
$28,028,000
$48,897,000
$63,435,000
$548,000
$762,000
$39,800,000
$48,177,000
$86,101,000
$94,712,000
$7,236,000
$8,005,000
$587,415,000
$661,130,000
$67,743,000
$75,756,000
$1,102,323,000
$1,349,476,000
$277,402,000
$370,780,000
$2,844,000
$3,263,000
$83,247,000
$108,786,000
$84,765,000
$104,648,000
$80,775,000
$119,365,000

6.5%
7.5%
8.2%
9.5%
7.0%
8.3%
6.9%
8.3%
7.3%
8.2%
7.4%
8.4%
6.8%
8.0%
4.1%
5.2%
8.3%
9.1%
5.0%
5.0%
6.0%
6.1%
7.7%
7.9%
9.1%
9.3%
8.9%
9.9%
6.8%
8.3%
7.1%
7.4%
7.8%
9.3%
7.8%
8.7%
5.5%
7.4%

7.5%
6.7%
4.9%
5.1%
7.5%
5.3%
5.5%
4.7%
6.3%
1.4%
2.6%
7.1%
4.8%
8.1%
5.3%
3.0%
5.5%
4.3%
6.5%

Institute on Taxation and Economic Policy 10

 Appendix 1: Detailed State and Local Tax Contributions of Total Undocumented Immigrant Population
Current vs. Full Legal Status for All Undocumented Immigrants
Sales and Excise Tax Total Personal Income Tax Total

Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

All States

Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status
Current
Full Legal Status

Current
Full Legal Status

$64,545,000
$71,000,000
$17,615,000
$19,377,000
$43,859,000
$48,245,000
$4,302,000
$4,732,000
$91,169,000
$100,286,000
$1,067,260,000
$1,173,985,000
$40,863,000
$44,950,000
$1,515,000
$1,667,000
$121,514,000
$133,665,000
$243,047,000
$267,352,000
$3,531,000
$3,884,000
$36,367,000
$40,004,000
$3,442,000
$3,787,000

$7,025,296,000
$7,727,826,000

$34,440,000
$75,769,000
$3,887,000
$7,571,000
$10,606,000
$23,333,000
No Income Tax
No Income Tax on Wages
No Income Tax
$13,189,000
$29,015,000
$326,000
$540,000
$71,310,000
$152,803,000
No Income Tax
$1,080,000
$2,376,000
$13,230,000
$27,273,000
No Income Tax

$1,131,236,000
$2,243,067,000

Property Tax Total

Undocumented
Top 1% Effective Tax Rate
Total State and Local Taxes Immigrant Effective Tax
(All Taxpayers)1
Rate

$35,887,000
$39,475,000
$9,652,000
$10,617,000
$13,288,000
$14,616,000
$1,036,000
$1,140,000
$16,260,000
$17,886,000
$493,636,000
$543,000,000
$15,718,000
$17,290,000
$1,094,000
$1,204,000
$63,142,000
$69,456,000
$73,577,000
$80,935,000
$501,000
$551,000
$22,195,000
$24,414,000
$723,000
$795,000

$134,872,000
$186,244,000
$31,154,000
$37,564,000
$67,753,000
$86,195,000
$5,338,000
$5,872,000
$107,465,000
$118,251,000
$1,560,896,000
$1,716,985,000
$69,770,000
$91,255,000
$2,936,000
$3,411,000
$255,965,000
$355,924,000
$316,624,000
$348,287,000
$5,112,000
$6,811,000
$71,792,000
$91,691,000
$4,165,000
$4,582,000

7.2%
9.0%
7.4%
8.1%
5.5%
6.4%
8.0%
8.0%
7.4%
7.4%
8.6%
8.6%
6.7%
8.0%
7.3%
7.7%
6.0%
7.6%
10.7%
10.7%
6.4%
7.7%
7.5%
8.7%
5.2%
5.2%

$3,583,429,000
$3,941,771,000

$11,739,961,000
$13,912,665,000

8.0%
8.6%

4.2%
6.3%
4.5%
1.8%
3.0%
2.9%
4.8%
7.7%
5.1%
2.4%
6.5%
6.2%
1.2%

5.4%

Change
+$702,530,000
+$1,111,831,000
+$358,343,000
+$2,172,703,000
1 Institute on Taxation and Economic Policy, A Distributional Analysis of the Tax Systems in All Fifty States, 5th Edition, January 2015. www.whopays.org

Institute on Taxation and Economic Policy 11

 Appendix 2: Data Used to Estimate State and Local Tax Contributions of Undocumented Immigrants
Estimated Total
Undocumented
1
Immigrant Population
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Dist. of Col.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri

71,000
7,000
244,000
56,000
3,019,000
163,000
105,000
23,000
27,000
610,000
377,000
21,000
33,000
519,000
94,000
36,000
63,000
45,000
66,000
5,000
253,000
173,000
97,000
85,000
25,000
57,000

Est. Share of
Undocumented
Immigrant Population
2
who are Homeowners
29%
31%
36%
37%
27%
33%
24%
32%
23%
33%
33%
40%
44%
39%
40%
39%
44%
21%
20%
31%
32%
21%
40%
32%
23%
37%

Average
Undocumented
3
Family Income
$28,000
$30,600
$25,200
$28,400
$30,300
$29,600
$35,900
$34,800
$37,000
$30,700
$29,200
$39,600
$28,200
$32,500
$27,700
$29,500
$30,100
$27,000
$30,100
$30,600
$36,700
$34,800
$29,500
$30,500
$27,900
$28,900

1
Migration Policy Institute (MPI) analysis of U.S. Census Bureau data from the 2010-2014 ACS pooled, and the 2008
Survey of Income and Program Participation (SIPP) by Colin Hammar and James Bachmeier of Temple University and
Jennifer Van Hook of The Pennsylvania State University, Population Research Institute.
2

Ibid.

3

Ibid.

4

Ibid

1,000
38,000
129,000
9,000
498,000
68,000
850,000
338,000
3,000
83,000
85,000
116,000
137,000
29,000
98,000
5,000
120,000
1,470,000
81,000
3,000
272,000
219,000
6,000
71,000
6,000

Est. Share of
Undocumented
Immigrant Population
who are Homeowners2
31%
37%
32%
31%
24%
45%
19%
33%
31%
26%
38%
30%
30%
20%
29%
31%
27%
41%
38%
31%
32%
32%
31%
32%
31%

11,009,000

31%

Estimated Total
Undocumented
1
Immigrant Population
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

All States

Average
Undocumented
3
Family Income
$30,600
$29,000
$30,600
$30,600
$35,100
$25,000
$33,300
$27,500
$30,600
$29,300
$29,400
$28,900
$31,400
$33,300
$28,700
$30,600
$27,900
$28,200
$29,300
$30,600
$36,100
$30,900
$30,600
$30,800
$30,600

$30,700

Institute on Taxation and Economic Policy 12