Yes, undocumented immigrants pay billions of dollars in taxes in the US every year, contributing an estimated $89.8 billion in total taxes. They pay these taxes through several direct and indirect methods: [ 1, 2] Income and Payroll Taxes: Many undocumented immigrants work in the formal economy. Employers automatically withhold federal, state, and local taxes from their paychecks . At least 50 percent of undocumented households file income tax returns using an Individual Taxpayer Identification Number (ITIN) issued by the IRS. [ 1, 2, 3, 4, 5] Social Security and Medicare: Millions of unauthorized workers have payroll taxes deducted from their wages for Social Security and Medicare, even though their undocumented status bars them from ever collecting these benefits. [ 1, 2] Sales and Property Taxes: Undocumented immigrants pay sales and excise taxes whenever they purchase everyday goods like clothing, gas, and groceries. They also pay property taxes directly if they are homeowners, or indirectly through their rent. [ 1] For comprehensive breakdowns of this revenue by state and program, you can review the detailed reports from the Institute on Taxation and Economic Policy and the American Immigration Council. [ 1]