Institute on Taxation and Economic Policy. March 2017. This research outlines what undocumented immigrants pay in state and local taxes. Contrary to political rhetoric, undocumented immigrants do pay a portion of their incomes in taxes each year. http://itep.org/itep_reports/2017/03/undocumented-immigrants-state-local-tax-contributions-2.php#.WNQlWm_yuUl