Undocumented immigrants in Oklahoma contributed $227.5 million in state and local taxes in 2022, according to a recently released report. (Getty Images) (This image cannot be republished unless you have a Getty subscription.)
OKLAHOMA CITY – Undocumented immigrants in Oklahoma contributed $227.5 million in state and local taxes in 2022, according to a recently released report by a nonprofit, nonpartisan tax policy organization.
In Oklahoma, some 89,000 undocumented immigrants paid the taxes, according to the analysis by the Washington D.C.-based Institute on Taxation and Economic Policy.
About $122 million were sales and excise taxes, while $49 million were in property taxes, according to the report. Another $51 million were personal or business income taxes, the report said.
The state figures do not include what undocumented immigrants paid into Social Security and Medicare, said Gabriela Ramirez-Perez, Oklahoma Policy Institute immigration policy analyst.
“And that is what makes these contributions all the more significant, because they’re basically helping fund Social Security and Medicare … while being barred from receiving benefits themselves,” she said.
In addition, undocumented immigrants can’t access food stamps, but if they have children who are U.S. citizens, the children can, Ramirez-Perez said.
They also can’t access a myriad of tax credits, such as the earned income tax credit, she said.
She said actual policy taxes a backseat to politics.
“As our state leaders continue discussions about policies that impact immigrants, we must start by recognizing how deeply immigrants are interconnected in our communities broadly,” Ramirez-Perez said. “For decades, undocumented immigrants have made Oklahoma their home, raised families, paid taxes, worked essential jobs, cared for our loved ones, and made our communities stronger.”
Marco Guzman is a Institute on Taxation and Economic Policy senior policy analyst and co-author of the study.
In Oklahoma, undocumented immigrants paid a higher average tax rate of 8.9% compared to those in the top percentile. They paid an effective rate of 6.4%, he said.
“They don’t have access to certain exemptions,” he said.
While the report doesn’t delve into jobs held by undocumented immigrants, research shows many hold jobs in professions where Americans simply don’t want to work, he said.
Nationally, undocumented immigrants paid $96.7 billion in federal, state and local taxes in 2022, according to the report.
Six states collected more than $1 billion from undocumented immigrants, including California at $8.5 billion, and Texas at $4.9 billion, according to the report.
“In total, the tax contribution of undocumented immigrants amounted to 26.1 percent of their incomes in 2022,” according to the report.
The report comes as states like Oklahoma and Texas seek to crack down on illegal immigration..
A federal judge recently put a controversial Oklahoma immigration law on hold pending the outcome of a legal challenge.
The law seeks to create a new crime for willfully entering the state without authorization to be in the country.
Those found guilty of “impermissible occupation” could face fines, imprisonment and be forced to leave the state within 72 hours.
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