Undocumented Immigrants Pay Taxes Too
Undocumented immigrants make many contributions to our economy, including the payment of local, state, and federal taxes. According to the Institute on Taxation and Economic Policy's 2015 report, Undocumented Immigrants' State and Local Tax Contributions, 11.4 million undocumented immigrants paid $11.84 billion in state and local taxes in 2012. This includes $31.2 million in Hawai‘i state and local taxes.
COFA Residents and Taxes
People from the freely associated states (Federated States of Micronesia, the Marshall Islands, and Palau) also pay local, state, and federal taxes. Despite paying their full share of taxes, they are ineligible for many federal benefits.