An identification tag applicator is provided, which is especially suited to applying identification tags to animals. The applicator includes a body (12) which has a driving rod housing (20) in which a driving rod (24) is slidably engaged. The driving rod (24) has a driving surface (28) adapted to receive a tag (60) which is to be applied. The applicator also has a trigger member (14) which is pivotably attached to the body (12). The trigger member (14) includes a connecting pin (46) which is adapted to selectively engage the trigger member (14) with the driving rod (24). A release mechanism automatically returns the driving rod (24) to a retracted position when the driving surface (28) of the rod (24) reaches a predetermined distance from the housing (20). The release mechanism ensures that the driving rod (24) is immediately retracted out of the way as soon as the tag is applied.