US immigrants pay billions of dollars in taxes each year

Immigrants generated about $1.7T in economic activity in 2023 and paid roughly $652B in taxes.

Studies show immigrants commit crimes at lower rates than native-born Americans

Research examining incarceration records and crime data generally finds that immigrants—including undocumented individuals—have lower crime and incarceration rates than US-born citizens, though measurement is limited by gaps in national data on immigration status.

Americans between the ages of 45 and 55 pay nearly 30% of all income taxes, paying an average tax rate of around 17%.

Some argue that restricting illegal immigration would raise wages for lower-income American workers

The Heritage Foundation argues that illegal immigrants' willingness to work for below-market wages suppresses wages for low-skilled American workers—and that reducing illegal immigration would increase wages and job opportunities, particularly for workers without a college degree.

Americans spend an average of $200 on tax preparation services like TurboTax and H&R Block

In 2025, about half of Americans were able to file taxes directly with the IRS for free. It was the second year of the agency's new program, which cuts out intermediaries. Though tax preparation has been free for many Americans, critics say tax companies upsell customers.

The IRS already has much of the data it asks Americans to report when filing their taxes

Americans spend more than 7.9 billion hours per year doing their taxes: It's notoriously time-consuming, requiring forms, deductions, and often third-party help. But here's the twist: The IRS already has much of the data it asks you to report. Americans still have to do the work themselves partly due to big tax prep companies that lobby to keep the status quo.

Why the rich don't pay taxes like you do

The system behind the US income tax isn't as straightforward as it looks. You earn money. Taxes get taken out. Case closed … right? Not exactly. In this episode of "1440 Explores," we break down how the US tax system actually works, from confusing deductions and misunderstood tax brackets to why the wealthiest Americans often end up paying a very different tax than everyone else.

Over a century ago, fewer than 1% of Americans paid income taxes—but the cost of World War II prompted the federal government to greatly expand the number of people required to pay income taxes.

Visa overstays account for nearly 40% of illegal US entries

In fiscal year 2023, approximately 510,000 people overstayed their visas, while 860,000 crossed the border illegally, meaning overstays accounted for 37% of the total number of new unauthorized arrivals. This represents a shift from 2007 to 2018, when overstays outnumbered border crossings, to 2019, when illegal crossings surged again.

Studies link H-1B workers to patents, innovation, and productivity growth in the US

Research shows that H-1B visa holders boost innovation: Firms that employ many H-1Bs file more patents. Economists estimate that foreign STEM workers helped explain 30% to 50% of nationwide productivity growth from 1990 to 2010, while immigrant inventors disproportionately generated high-value patents.

Individual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes from

The US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020.

The average salary for full-time gig workers is roughly $60K a year in the US

High-earners can make more than six figures, while close to 15% make less than the federal minimum hour wage. Most gig workers in the United States still have to file a tax return every year.

Multiple legal pathways exist for immigrating to the United States

This comprehensive guide outlines various routes to US immigration, including family-sponsored and employment-based visas, as well as humanitarian protections. Navigate the complex American immigration system and understand the options available to prospective immigrants seeking legal entry.

Read why the information Americans have about our tax system might be misleading

For many, filing taxes can be complicated and overwhelming. Some argue that the tax system obscures certain aspects of the US tax code, making it difficult for taxpayers to accurately assess potential reforms.

Watch this video to learn how US tax brackets actually work.

US immigrants shifted from primarily originating in Ireland and Germany to Mexico and India.

About one dollar in every six that are owed to the federal government aren't paid each year

That adds up to close to $1T in what's known as the "tax gap." Read a breakdown on the main drivers of tax evasion (distinct from legal tax avoidance) in the US.

Since 1913, Americans have paid income taxes at varying rates

In the 2020s, the top marginal tax rate has floated around 37%, relatively lower than previous eras. Some have called for boosting the rate significantly to tax the highest earners.

80% of Americans are bothered that some wealthy people don't pay their fair share of taxes

That's according to data from Pew Research Center. While most people are primarily taxed on their wages, many people in America's 1% derive much of their income from investments instead, which are often taxed at preferential capital gains rates. This structure was shaped by a series of legislative cuts that began in earnest with the 1978 Revenue Act and the 1981 Economic Recovery Tax Act.

Certain government assistance programs are available to green-card holders

Federal programs such as Medicaid and SNAP are often available to US green-card holders, but that's not typically the case for people with other immigration statuses in the US, like DACA recipients, asylum applicants, and unauthorized immigrants.

The share of the immigrant population in the US peaked at nearly 16% in January 2025

In January 2025, the US reached a historic high of 53.3 million immigrants—nearly 16% of the population. By June of that year, the number had fallen by more than a million, ending 50 years of continuous growth in the immigrant population.

What America's 1% pays in taxes, by state

In the US, the top 1% of earners contribute 45% of all personal income taxes collected nationwide. But not all states are created equal when it comes to income tax. Some states are more dependent on the 1% than others for tax revenue. SmartAsset recently examined IRS tax return data to determine exactly how much the top 1% of earners in each state paid in taxes. Find your state here.

The Trump administration said the new H‑1B fee curbs abuse but still attracts top talent

In announcing a fee on new H‑1B petitions, the Trump administration claimed the visa was exploited to replace American workers and suppress wages. Officials argued that a steep fee would deter abuse while still allowing employers to bring in the "best of the best" temporary foreign talent.

Use this marriage tax calculator to see how much two specific people might pay if they were to get married, based on their individual income levels and more.

Employers must apply for H-1B visas on behalf of foreign workers

To hire an H-1B worker, US employers first file with the Department of Labor, then petition the US Citizenship and Immigration Services. They must attest that they won't replace American workers, and that they will implement stricter rules for firms that rely heavily on H-1B visas.

Annuitants have to pay income taxes on the annuity payments they receive, unless their annuities are folded into a Roth IRA

In most other cases, annuities grow tax-deferred until annuitants start to receive payments. Those payments are then taxed as regular income. Nonqualified annuities, which are bought with after-tax dollars, have different rules.

Read about what happened when one woman started filing income taxes again

Even though she was 35 and had a 14-year-old son, Gabriela Gallegos's mother had claimed her as a dependent on her tax forms for roughly a decade. After that particularly tumultuous ten-year span of Gallegos's life came to a close, she decided to file income taxes again.

Track the changes in US immigration law throughout history

This interactive timeline tracks the development of US immigration law, overlaid with time-series data on percentages of the foreign-born population. Explore how each major policy development correlated with immigration levels, revealing the relationship between legislation and demographic change.

Most Americans take the standard tax deduction

A tax deductible is an expense that a taxpayer or business can subtract from adjusted gross income, reducing their taxable income and therefore reducing the amount of taxes owed. Governments often use tax deductibles as a way to reward people who do things that are considered beneficial to society, like charitable donations.

The IRS may look at your social media if you're being audited

While some people cheat on their taxes, others evade paying them altogether. This article details methods the Internal Revenue Service uses to catch these people in the act, such as scanning social media, computer data analysis, and whistleblowers.

Mutual fund investors typically must pay a variety of different types of taxes associated with their investment, unless the funds are within tax-advantaged accounts like a 401(k) or IRA.

How to owe nothing on your federal tax return

Do you know you can avoid owing the IRS money come tax season by making changes to your W-4? For context, a W-4 is the form you fill out when you first start a new job. It tells your new company how much money to withhold from each paycheck for taxes. Find out how to avoid writing a check to the IRS each April in this article.

Learn about loopholes in the American tax code, which involve everything from cat food to death to heavy machinery.

It cost the IRS $0.36 to collect $100 in 2024

It costs the IRS a significant amount of money to do part of its job—collecting money. For instance, the Internal Revenue Service spent $16.1B to collect $4.7T in taxes in 2023.

A timeline of US immigration laws

The United States began regulating immigration soon after it won independence from Great Britain, and the laws since enacted have reflected the politics and migrant flows of the times. Here's a timeline of key immigration laws from 1790 to 2014, according to the Pew Research Center.

Before the 16th Amendment, US tax law required direct taxes to be directly apportioned to a state's population

Due to these requirements, the federal government could not impose many direct taxes. Direct taxes include property and income taxes, whereas indirect taxes include duties and excises.

See comparisons of different countries' taxation strategies

Taxes are a major revenue source for most countries, and how each government taxes citizens often reflects the country's economy. Developed countries tax at much higher rates than developing ones, and as a country grows its GDP, it also typically grows the proportional percentage of taxes it gains from its citizens.

40% of Americans have ancestors who immigrated via Ellis Island

For over 60 years, Ellis Island was the gateway to America, processing millions of immigrants seeking a new life. While many passed through with ease, others faced rigorous medical exams, legal scrutiny, and even deportation. Learn how this small island shaped generations of American families.

Tariffs are typically paid by the importing company or organization to the US Treasury.

Studies show H-1B workers help address shortages in STEM fields

Research finds that unemployment rates in occupations employing large numbers of H-1B workers remained low between 2004 and 2023, even during the pandemic. Other studies suggest H-1Bs complement US workers in STEM fields and expand job opportunities.

What's your tax filing status? Find out with this video

There are five different filing statuses taxpayers fall under when they file income taxes: single, married and filing jointly, married and filing separately, head of household, and surviving spouse. Taxpayers' status is determined by whichever category they fit into on December 31st of the tax year they're filing for.

Study shows H-1B visas depress wages and reduce consumer tech costs

A paper from the National Bureau of Economic Research found that without H-1B workers, American computer scientists would earn 2.6% to 5.1% more and domestic employment could rise by 11%, but consumers would pay more for advanced technology, and output would decrease.

The US officially adopted an income tax in 1913

The US first levied income taxes during the Civil War, but modern income taxes became an American fixture in 1913. Two years earlier, Congress passed the 16th Amendment to give the government the right to tax individuals' and businesses' income. The US still technically levies the same federal income tax now as it did then—though it's evolved.

What it's like to do your own taxes for the first time

Most Americans across the country have one thing in common: They hate doing their taxes. Many use an accountant or an online service like TurboTax to avoid doing taxes themselves. In this video, two journalists decide to do their taxes on their own for the first time.

Watch a breakdown of tax breaks most Americans don't know about

Programs like healthcare savings accounts or flexible spending accounts are tax-free accounts that are designed to help lower healthcare costs. However, many Americans don't use them and don't understand how they work.

Read about the tax implications of remote work's increasing popularity

Tax complications can arise when a remote employee opts to work from a state where their employer had not previously done business. Demand for remote jobs has remained high since the pandemic accelerated remote work's popularity.

A rising number of Social Security beneficiaries are taxed on their Social Security income

That’s because while Social Security benefits increase with wages and inflation, the income limits for taxing those benefits stay the same and don’t adjust over time.

H-1B visas let US employers hire skilled foreign professionals in specialty occupations

The H-1B is the main US program for temporary high-skilled workers, covering roles in technology, engineering, medicine, and finance. Issued for up to six years, it often serves as a pathway to permanent residency.

Only about 70 employers have paid Trump's $100K H-1B fee as of February 2026

Only about 70 employers have paid the $100K fee for certain H-1B hires since it was imposed by presidential proclamation in September 2025, a DOJ attorney said in court, as judges weigh whether the charge requires explicit congressional authorization.

Tariffs are taxes levied on goods imported from abroad.