What is the Difference Between A Federal and a State Tax ID Number?

Back to FAQs


Building a business is a feat of personal strength, and not for the faint of heart. A lot of blood, sweat, and tears goes into launching an infant company, and watching it blossom and thrive can be one of the crowning achievements of your professional life.

There are a lot of hassles to overcome, including tons of paperwork and applications to process. Thankfully, IRS-EIN has your back when it comes to answering questions about your employer identification number and state tax ID number.

Federal vs. State ID Number

When it comes to a federal vs. state ID number, things can sometimes get confusing. A federal ID number is basically the same as an employer ID number, and is a unique set of nine digits (formatted 12-3456789) that defines your business as a working, tax-paying entity by the Internal Revenue Service (IRS) within the United States of America. You use your federal ID number to conduct tax-related tasks, such as opening a business bank account, or filing your business taxes in April.

A state tax ID is used solely for state tax reporting. They aren’t portable, so they are generally not requested by other agencies or third parties. You need to file state payroll returns for each employee that works for your company.

Apply for EIN

If you would like to fill out an EIN application online or check EIN status, you can do this easily with IRS-EIN. Our safe and secure website enables you to get your EIN within a couple of hours, and you can always check the status of your application online.

Select Your Entity Type to Apply for a Federal Tax ID Today