Comparison Guide
EIN vs Federal Tax ID
EIN and Federal Tax ID refer to the same 9-digit number issued by the IRS. This guide explains why both terms exist and when businesses use each one.
This question generates 40,500 monthly Google searches because business owners encounter both terms on different documents. A bank application may ask for your "Federal Tax ID Number." An IRS form asks for your "EIN." They want the same number. This guide explains the terminology, the history, and the broader US tax ID system so you never have to wonder again.
The term "Federal Tax ID" is particularly common among first-time business owners who may not know what an EIN is. It is also common in everyday business language because "Federal Tax ID" is more descriptive than the acronym "EIN." Both terms appear on legitimate business documents, and both refer to the same 9-digit number.
Same Number
EIN = Federal Tax ID: The Same Number
The IRS issues one type of tax identification number to businesses: the Employer Identification Number (EIN). This number serves as the business's federal tax identification number. The terms are synonymous.
| Term | Meaning | Same Number? | |------|---------|-------------| | EIN | Employer Identification Number | Yes - this is the official IRS term | | Federal Tax ID | Federal Tax Identification Number | Yes - informal but widely used | | FEIN | Federal Employer Identification Number | Yes - adds "Federal" for clarity | | Business Tax ID | Business Tax Identification Number | Yes - when referring to a business | | Federal ID Number | Federal Identification Number | Yes - abbreviated form |
All 5 terms above refer to the same 9-digit number from the IRS.
Why the IRS Uses "EIN"
The IRS chose "Employer Identification Number" in 1974 because the original purpose was to identify employers for payroll tax purposes. Despite the word "employer" in the name, the EIN is required for all business entities — not just employers. Trusts, estates, non-profits, and single-member LLCs without employees all need EINs. The name is a historical artifact, but it remains the official designation.
Why People Say "Federal Tax ID"
"Federal Tax ID" is more intuitive than "EIN" for three reasons:
- It clearly states the issuing authority (federal, meaning IRS)
- It clearly states the purpose (tax identification)
- It does not imply you need employees (unlike "Employer Identification Number")
Banks, insurance companies, and contract managers often prefer "Federal Tax ID" because it is immediately understandable to anyone, regardless of their familiarity with IRS terminology.
TIN Umbrella
The Tax ID Umbrella (TIN)
The US tax system uses several types of identification numbers. TIN (Taxpayer Identification Number) is the umbrella term that covers all of them.
| Tax ID Type | Full Name | Issued To | Format | Issued By | |-------------|-----------|-----------|--------|-----------| | EIN | Employer Identification Number | Businesses, entities | XX-XXXXXXX | IRS | | SSN | Social Security Number | US citizens, authorized residents | XXX-XX-XXXX | SSA | | ITIN | Individual Taxpayer Identification Number | Non-residents without SSN | 9XX-XX-XXXX | IRS | | PTIN | Preparer Tax Identification Number | Tax return preparers | P + 8 digits | IRS | | ATIN | Adoption Taxpayer Identification Number | Children being adopted | 9XX-XX-XXXX | IRS |
When a form asks for your "Tax ID" or "TIN," you provide whichever number matches your situation:
- Business filing? Use your EIN
- Personal filing (US citizen)? Use your SSN
- Personal filing (non-resident)? Use your ITIN
For detailed comparisons, see:
How to Apply
How to Get Your EIN / Federal Tax ID
Getting an EIN (Federal Tax ID) is straightforward. The IRS offers 4 methods:
Online (Instant)
Fax (4-7 Business Days)
Phone (Same Day)
Mail (4-6 Weeks)
Cost
The IRS charges $0 for an EIN. It is completely free regardless of application method. Third-party services charge for assistance with the process:
| Provider | Price | What's Included | |----------|-------|-----------------| | IRS (direct) | $0 | Self-service application | | ein.so | $49 Standard / $97 Express | SS-4 preparation + fax filing | | ein-itin.com | $65 | SS-4 filing | | GovDocFiling | $147-200 | Filing + additional services | | LegalZoom | $149+ | Filing + upsells |
Non-US residents who cannot use the free online tool apply through ein.so for $49.
When to Use Which Term
When to Say EIN vs Federal Tax ID
Use "EIN" When:
- Filling out IRS forms (1120, 1065, 941, W-2, 1099)
- Communicating with the IRS
- Registering on irs.gov
- Filing Form SS-4
Use "Federal Tax ID" When:
- Speaking with bank representatives
- Filling out business applications
- Explaining your tax ID to clients
- Completing vendor registration forms
Either Term Works When:
- Opening a business bank account
- Applying for business credit
- Completing state tax registrations
- Setting up payroll
The recipient will understand both terms. If in doubt, say: "My Federal Tax ID, also called my EIN, is XX-XXXXXXX." This eliminates all ambiguity.
Summary
Summary: EIN = Federal Tax ID
- EIN and Federal Tax ID are the same 9-digit number
- The IRS officially calls it an EIN
- Everyone else often calls it a Federal Tax ID
- Format: XX-XXXXXXX
- Cost: Free from IRS or $49 through ein.so for non-residents
- Both terms are correct and interchangeable
Stop wondering if they are different. They are not. Get your EIN, and you have your Federal Tax ID. Apply now or learn more about what an EIN is.
Frequently Asked Questions
Is an EIN the same as a Federal Tax ID?
Yes. An EIN (Employer Identification Number) is a type of Federal Tax ID. When people say Federal Tax ID for a business, they mean the EIN. The IRS issues the EIN as the business's federal tax identification number. They are the same 9-digit number in XX-XXXXXXX format.
What is the difference between a Tax ID and an EIN?
Tax ID (or TIN, Taxpayer Identification Number) is a broad term that includes EINs, SSNs, and ITINs. An EIN is specifically the Tax ID for businesses. An SSN is the Tax ID for US citizens. An ITIN is the Tax ID for non-residents without an SSN. When someone says business Tax ID, they mean the EIN.
How do I get a Federal Tax ID number?
Apply for an EIN through the IRS. US residents with an SSN can apply online at irs.gov for instant issuance. Non-residents submit Form SS-4 by fax to 855-215-1627. ein.so handles the fax process for non-residents for $49.
Is a Federal Tax ID number free?
Yes. The IRS issues EINs (Federal Tax IDs) at no cost. The application through the IRS is completely free regardless of method (online, fax, phone, or mail). Third-party services like ein.so charge for form preparation and filing assistance, not for the EIN itself.
Do I need a Federal Tax ID if I already have an SSN?
If you operate a business, yes. Your SSN is your personal Tax ID. Your EIN (Federal Tax ID) is your business Tax ID. Using your SSN for business purposes exposes your personal identity to fraud. An EIN separates your business and personal tax identities.
Can non-US residents get a Federal Tax ID?
Yes. Non-US residents can obtain an EIN (Federal Tax ID) by submitting Form SS-4 by fax or by calling the IRS at 267-941-1099. The IRS online tool requires an SSN, so non-residents must use alternative methods. ein.so provides this service for $49.
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