Getting a federal tax ID number costs nothing when you apply directly with the IRS, with one exception: the Preparer Tax Identification Number for paid tax preparers, which is $18.75 for 2026. An Employer Identification Number, an Individual Taxpayer Identification Number, and the replacement of a lost EIN are all free through official channels. The real cost of a tax ID number, when there is one, usually comes from a third-party filing service, a paid document certifier, or a state-level registration, not from the IRS itself.
EIN: Free From the IRS
The IRS charges nothing for an Employer Identification Number. Its guidance is unambiguous: “You never have to pay a fee for an EIN.”1Internal Revenue Service. Get an Employer Identification Number That applies whether you file online, by fax, or by mail. There is no application charge, no expedited processing fee, and no renewal cost. Once the IRS assigns your EIN, the number stays with your entity permanently.
The online tool issues the number immediately after you submit Form SS-4. Fax filings currently take about eight business days to process,2Internal Revenue Service. Processing Status for Tax Forms and mailed applications typically take four to five weeks. None of the three methods costs money to the IRS.
Where the Fees Come From
Plenty of websites are built to look like official government portals and charge anywhere from $50 to $300 to submit the same free application on your behalf. They offer no legal advantage. The IRS specifically warns applicants to “beware of websites that charge for an EIN.”1Internal Revenue Service. Get an Employer Identification Number
Two quick checks confirm you are on the real IRS site. The URL should end in .gov, and the browser should show a lock icon or “https://” in the address bar. If a site asks for payment before issuing an EIN, it is not the IRS.
Lost EIN
Recovering an EIN you already have is also free. Call the IRS Business and Specialty Tax Line at 800-829-4933, Monday through Friday, 7:00 a.m. to 7:00 p.m. local time. After verifying your identity, the agent provides the number over the phone at no charge.3Internal Revenue Service. Employer Identification Number
ITIN: Free at the IRS, Paid Help Is Optional
An Individual Taxpayer Identification Number is for people who must file a U.S. tax return but are not eligible for a Social Security Number, typically nonresident aliens and their spouses or dependents. The IRS charges no fee for the ITIN itself. You can apply for free at an IRS Taxpayer Assistance Center that offers ITIN services or through a Volunteer Income Tax Assistance (VITA) site.4Internal Revenue Service. How to Apply for an ITIN
Costs enter the picture when you use a Certified Acceptance Agent, an IRS-approved professional who verifies your identity documents and submits Form W-7 for you. CAA fees are set by the agent, not the IRS, and vary widely. If you apply through a free IRS channel instead, your only likely expense is mailing the application along with original identification documents or certified copies; certification or notarization of those documents can carry its own fee.5Internal Revenue Service. Instructions for Form W-7
PTIN: The One Federal Tax ID With a Fee
The Preparer Tax Identification Number is the exception to the “free” rule. Anyone paid to prepare federal tax returns must have a PTIN, and the fee to obtain or renew one is $18.75 for 2026.6Internal Revenue Service. IRS Reminds Tax Pros to Renew PTINs for the 2026 Tax Season PTINs must be renewed every year, so the cost recurs.
Business owners and individual filers do not need a PTIN. It applies only to people who prepare federal returns for compensation.
State Tax ID Numbers
Many businesses also need a state-level tax identification number for obligations such as sales tax collection or unemployment insurance. State fees and rules vary by jurisdiction. Most states issue sales tax permits at no cost, though some charge modest registration fees, and a few require refundable security deposits or bonds before issuing certain permits.
State departments of revenue handle these registrations. Contact your state’s revenue agency directly to confirm requirements and any fees. Going straight to the state avoids the same third-party markup problem that surrounds federal EIN filings.
Updating or Closing an EIN Costs Nothing
If the responsible party on your EIN changes because the business was sold or a new officer took control, you must report the change within 60 days using Form 8822-B. There is no fee for the form, and no specific penalty attaches to missing the deadline. Keeping your information current does matter for a different reason: outdated contact details can keep IRS notices from reaching you while penalties and interest continue to accrue on your account.7Internal Revenue Service. Form 8822-B, Change of Address or Responsible Party
Closing an EIN is also free. The IRS cannot actually cancel an EIN, since a number once assigned is never reissued or deleted, but the agency will deactivate the account at no charge. Send a letter to the IRS in Cincinnati, OH 45999 with the entity’s legal name, EIN, address, and the reason for closing, along with a copy of the original EIN assignment notice if you have it.8Internal Revenue Service. Closing a Business The IRS will not close the account until all required returns are filed and any taxes owed are paid.9Internal Revenue Service. If You No Longer Need Your EIN
What It Costs to Skip the Tax ID
The application is free, but leaving a tax ID off a required filing, or reporting the wrong one, is not. For information returns like W-2s and 1099s filed with a missing or incorrect TIN, IRC 6721 penalties for returns due in 2026 run on a sliding scale:
- Corrected within 30 days: $60 per return
- Corrected after 30 days but by August 1: $130 per return
- Not corrected by August 1: $340 per return
- Intentional disregard: $680 per return, with no annual cap
For other filings that require a TIN but are not information returns, the penalty is $50 per failure, up to $100,000 per calendar year.10Internal Revenue Service. 20.1.7 Information Return Penalties The math argues for getting the free number before you need to file, not after.