What Is a Texas Identification Number? TIN vs. Texas Taxpayer Number

A Texas Identification Number is the random 11-digit number the Texas Comptroller of Public Accounts assigns to every person or business that receives payments from the state. It begins with 7 and takes the place of your Social Security number, Individual Taxpayer Identification Number, or federal employer identification number on state payment records, so those sensitive numbers stay out of the state’s accounting files.¹

The number lives inside the Texas Identification Number System, or TINS, the Comptroller’s statewide database for payee and payment information. Anyone the state cuts a check to has to be entered there first: state employees, vendors on government contracts, grant recipients, and other payees alike.²

What the Number Actually Does

The TIN is an internal identifier for the state payment system. It is not a tax ID, not a license, and not something you present to customers or the IRS. Its job is to let Texas agencies pay you while keeping your federal identification number off the paperwork that moves through state accounting.

When your record is set up, you supply one of three federal numbers to prove who you are: a Social Security number, an employer identification number, or an Individual Taxpayer Identification Number. The Comptroller then generates the 11-digit TIN that starts with 7, and that is the number tied to your payments going forward.¹ Foreign entities and nonresident aliens who have none of those three federal numbers can still be assigned a TIN directly by the Comptroller through the agency issuing the payment.

One thing the TIN does not change: federal tax reporting. State agencies that pay independent contractors still issue Form 1099-NEC when payments meet the reporting threshold, and the income still belongs on your federal return.³

How You Get One

You don’t apply for a TIN directly. The first time you do business with a state agency or are set up to receive a state payment, that agency gives you the application form. You complete it, return it to the agency, and the agency submits it to the Comptroller.¹

Because the agency drives the process, there is no central portal to go to on your own and nothing to pay. If you are expecting a state payment and have not been handed a form, the contact point is the agency that will be paying you.

Don’t Confuse It With the Texas Taxpayer Number

Texas issues a second 11-digit number that trips up a lot of people searching for “Texas identification number.” The Texas Taxpayer Number is what the Comptroller assigns when you register for a sales tax permit or become subject to franchise tax, and it begins with 1 or 3 rather than 7.⁴ You use it to file sales tax returns, file the franchise tax report, and talk to the Comptroller about your tax account. It has nothing to do with receiving payments from the state.

You need a sales tax permit, and therefore a Texas Taxpayer Number, if you are engaged in business in Texas and you sell tangible personal property, lease or rent tangible personal property, provide a service that Texas taxes, or buy taxable goods from an out-of-state supplier that doesn’t hold a Texas permit. The requirement applies no matter how your business is organized.⁵ Franchise tax covers a separate but overlapping group: corporations, LLCs, most partnerships, banks, business trusts, and professional associations. Sole proprietorships and general partnerships made up entirely of natural persons are not subject to franchise tax.⁶

Applying for a sales tax permit is free. You can file online through the Comptroller’s eSystems portal, or complete Form AP-201 and send it in by email or by fax to 512-936-0010. Processing takes about two to three weeks.⁷ You can apply even if you have not yet received a federal EIN, and the Comptroller will assign your 11-digit Texas Taxpayer Number when the application is approved.⁸

Verifying Someone Else’s Permit

If you need to confirm that a vendor or customer holds a valid Texas sales tax permit, use the Comptroller’s free Sales Taxpayer Search. You can look up a business by its 11-digit taxpayer ID, federal EIN, business name, or location, and the tool shows whether the permit is active.⁴ Suppliers commonly run this check before accepting a resale certificate.

Protecting the Federal Numbers Behind Your TIN

The TINS structure already shields your SSN or ITIN by substituting the random state-issued number on payment records. Your underlying federal EIN still needs its own protection, because stolen EINs are used to file fraudulent returns and open credit lines in a business’s name. Use multi-factor authentication on accounts that hold tax information, encrypt files that contain identification numbers, and limit internal access to the people who need it. If your business address or responsible-party information changes, update the IRS by filing Form 8822-B so your EIN records stay current.⁹

1
Texas Comptroller of Public Accounts. Texas Identification Number (TIN) – State Payee Payment Resources
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Texas Comptroller of Public Accounts. About the Texas Identification Number System
3
Internal Revenue Service. Reporting Payments to Independent Contractors
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Texas Comptroller of Public Accounts. Sales Taxpayer Search
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Texas Comptroller of Public Accounts. Sales Tax Permit Requirements
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Texas Comptroller of Public Accounts. Franchise Tax Overview
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Texas Comptroller of Public Accounts. Texas Online Tax Registration Application
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Texas Comptroller of Public Accounts. Texas Sales and Use Tax Frequently Asked Questions
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Internal Revenue Service. Identity Theft Information for Businesses