New Jersey Policy Perspective: Unemployment Insurance Taxes Paid by Undocumented Workers Top $1 Billion

Over the past ten years, unemployment insurance taxes paid based on undocumented immigrants’ work in New Jersey added more than $1.36 billion to state and federal unemployment insurance trust funds, according to a recent analysis conducted by the Institute on Taxation and Economic Policy and the Fiscal Policy Institute. In addition to contributions to unemployment insurance taxes, undocumented immigrants pay sales taxes, income taxes, and other taxes. Overall, New Jersey residents who are undocumented contribute approximately $587 million in state and local taxes each year.

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