Comparison Guide
EIN vs State Tax ID (2026)
Your federal EIN and your state tax ID are two different numbers from two different agencies. This guide shows what each one does and whether your business needs both.
Last updated: July 11, 2026
An EIN is not the same as a state tax ID. The EIN is a federal number issued by the IRS for federal tax and identification. A state tax ID — also called a state employer ID, sales tax number, or seller's permit — is issued separately by your state's revenue department for state payroll tax, sales tax, or withholding. Many businesses need both: one EIN and one or more state IDs, depending on the state and the business activity.
People often assume the EIN doubles as their state number. It does not. The two numbers come from two different governments — one federal, one state — and each covers a different set of taxes. Using the wrong number on a form gets the filing rejected.
This guide separates the federal EIN from the state tax ID, lists the state numbers people confuse with the EIN, and shows exactly when a business needs both. For the federal number basics, see what is an EIN.
EIN vs State Tax ID: The Core Difference
An EIN is a 9-digit federal tax ID from the IRS. A state tax ID is a separate number from your state's tax authority. The EIN identifies your business to the federal government; the state ID identifies it to the state.
| Feature | EIN (Federal) | State Tax ID |
|---|---|---|
| Issuing agency | IRS (federal) | State revenue/tax department |
| Format | 9 digits (XX-XXXXXXX) | Varies by state |
| Covers | Federal tax, identity, hiring, banking | State payroll, sales, and withholding tax |
| Cost | $0 from the IRS | $0 in most states |
| Where used | Form 941, W-2, 1120, bank accounts | State payroll and sales tax filings |
| How many | One per legal entity | One or more per state you operate in |
The EIN comes first. You apply for the EIN with the IRS, then register for any state tax IDs you need. Source: IRS and individual state revenue departments, verified July 2026.
What Is a Federal EIN Used For?
A federal EIN identifies your business to the IRS and is used for federal tax filing, hiring, and banking. The IRS assigns one EIN per legal entity, and that number never changes for the life of the business.
Your EIN appears on federal payroll forms (Form 941, Form 940, W-2, W-3), on your federal income tax return (Form 1120, 1120-S, 1065, or Schedule C), on 1099 forms you issue, and on every US business bank account application. Banks and payment processors ask for the EIN, not a state number, to verify the business federally.
The EIN is also the number people mean when they say "federal tax ID." An EIN and a federal tax ID are the same 9-digit number — see EIN vs federal tax ID for why both terms exist. Get the EIN through the how to get an EIN guide.
What Is a State Tax ID Used For?
A state tax ID identifies your business to a state tax authority for state-level taxes. States issue these numbers separately from the IRS, and the number applies only within that state.
There are three common types of state tax ID, and people confuse all three with the EIN:
- State employer tax ID — required to run payroll in a state; used for state income tax withholding and state unemployment tax.
- Sales tax number / seller's permit — required to collect sales tax on taxable goods; also called a resale certificate number.
- State withholding ID — required to withhold state income tax from employee paychecks.
Each state issues its own numbers through its own department of revenue or taxation. A business operating in three states may hold three separate state tax IDs plus its single federal EIN.
Do You Need Both an EIN and a State Tax ID?
Most businesses that hire employees or sell taxable goods need both an EIN and at least one state tax ID. A business with no employees and no taxable sales often needs only the federal EIN.
The table below shows which number a given activity requires:
| Your activity | Federal EIN | State tax ID |
|---|---|---|
| Open a US business bank account | Yes | No |
| File a federal tax return | Yes | No |
| Hire employees in a state | Yes | Yes (state employer ID) |
| Sell taxable goods to customers in a state | Yes | Yes (sales tax permit) |
| Non-resident LLC, no US staff or taxable sales | Yes | No |
| Withhold state income tax from wages | Yes | Yes (withholding ID) |
The pattern is consistent: the EIN covers federal obligations, and each state activity adds a state number. Selling taxable products is the most common trigger — see EIN vs sales tax permit for how the sales-tax side works.
Is My State Tax ID the Same as My EIN in My State?
No — no state uses the federal EIN as its state tax ID. This is true in every state, including the high-search states below where people ask this most.
- Texas (TX) — no state income tax, but a sales-and-use tax permit is issued by the Texas Comptroller, separate from the EIN.
- California (CA) — the CA employer ID from the EDD and the seller's permit from the CDTFA are both separate from the EIN.
- New York (NY) — a Certificate of Authority for sales tax comes from the NY Department of Taxation and Finance, separate from the EIN.
- Florida (FL) — no state income tax, but a sales tax certificate is issued by the Florida Department of Revenue.
- Georgia (GA) — the state tax number comes from the Georgia Department of Revenue, separate from the EIN.
Because the EIN is federal, the state your LLC sits in never changes the EIN itself — only the state registrations differ. The EIN by state hub explains why the EIN process is identical in all 50 states.
How Do You Get Each Number?
You get a federal EIN from the IRS and a state tax ID from your state's revenue department. The two applications are separate and happen in order: EIN first, state ID second.
To get the EIN, file Form SS-4 with the IRS. US residents with an SSN can apply online for an instant number. Non-residents fax Form SS-4 to the IRS at 855-215-1627 and receive the EIN in 4-7 business days. The IRS charges $0. ein.so files the fax application for non-residents for $49 Standard or $97 Express.
To get a state tax ID, register with the state's department of revenue or taxation, usually online and usually for $0. You supply your EIN on the state application, which is why the EIN must exist first. Each state you hire or sell in requires its own registration.
Start with the federal number. Apply for your EIN now — everything else, including any state tax ID, depends on it.
Frequently Asked Questions
Is my EIN my state tax ID number?
No. Your EIN is a federal number issued by the IRS. A state tax ID is a separate number issued by your state's revenue or taxation department. They come from different agencies and serve different purposes. A business that hires or sells taxable goods usually holds one EIN and one or more state IDs at the same time.
Do I need a state tax ID if I have an EIN?
It depends on your activity. You need a state tax ID if you hire employees in a state, sell taxable goods, or owe state withholding tax. If you have no employees and sell nothing taxable, an EIN alone may be enough. The EIN is federal; the state ID covers state-level obligations.
Is a sales tax number the same as an EIN?
No. A sales tax number, also called a seller's permit or resale certificate number, is issued by your state to let you collect sales tax. An EIN is a federal tax ID from the IRS. They are different numbers from different agencies. A retailer typically needs both an EIN and a state sales tax permit.
Does every state issue a separate tax ID?
No. States that levy income, sales, or payroll tax issue their own tax IDs. States with no income tax, such as Wyoming, Texas, and Florida, may still issue a sales tax permit if you sell taxable goods. Whether you get a state ID depends on the state and on whether you hire or sell there.
Which number goes on a state payroll filing?
State payroll filings use your state employer tax ID, not your federal EIN, for the state portion. Your federal EIN goes on federal payroll forms like Form 941 and W-2s. You register for a state employer ID with the state's revenue or labor department once you hire your first employee in that state.
Do non-residents need a state tax ID?
Only if the US LLC hires employees in a state or sells taxable goods there. A non-resident-owned single-member LLC with no US employees and no taxable sales usually needs only the federal EIN. If the LLC starts selling taxable products to US customers, it registers for a state sales tax permit in the relevant states.
Get Your Federal EIN First
The EIN comes before any state tax ID. ein.so files Form SS-4 with the IRS. $49 Standard. $97 Express. No SSN required.
Get My EIN for $49