What the undocumented worker makes. And the taxes they pay.
Of course, companies benefit on hiring the undocumented. Some pay taxes but many do not. When they do pay taxes, it’s way less than documented or US CITIZENS.
| Worker Type | Avg Hourly Wage | Annual Income | Income Tax Owed | Payroll Tax (7.65%) | Total Federal Taxes Paid |
|---|---|---|---|---|---|
| Undocumented Worker | $12.50–$16.00 | $26,000–$33,280 | $990–$1,718 | $1,989–$2,547 | $2,979–$4,265 |
| Documented Immigrant | $20.50–$22.00 | $42,640–$45,760 | $3,174–$3,558 | $3,262–$3,503 | $6,436–$7,061 |
| U.S.-Born Worker | $23.11 | $48,069 | $3,948 | $3,678 | $7,626 |
💼 Why Employers Hire Undocumented Workers
This is the uncomfortable but central truth:
Undocumented labor is cheaper, more compliant, and less protected.
Employers benefit because:
- They avoid payroll taxes
- They avoid benefits
- They avoid labor regulations
- Workers are less likely to report violations
This creates a dual labor market:
Employers and progressives claim that the undocumented sometimes pay taxes. Look at the wage difference below.
| Worker Group | Typical Hourly Wage | Notes |
|---|---|---|
| Native-born workers | $23–$24/hr | BLS median |
| Documented immigrants | $20.50–$22/hr | Slightly below natives |
| Undocumented immigrants | $12.50–$16/hr | 25–40% wage penalty |
