Skip to main content

What is the difference between an EIN and a state tax ID number?

Federal business ID vs state-level tax accounts.

Updated over 3 months ago
  • EIN: Federal tax ID issued by the IRS, used for federal taxes and most banking and platform requests.

  • State tax ID: Issued by a state tax agency for things like sales and use tax, payroll withholding, or franchise tax in that state (if applicable).

  • Many businesses need both: one EIN plus one or more state tax IDs depending on where they operate.

Did this answer your question?