State vs. Territory: How States and Territories Are Different

Each U.S. state is a self-governing entity with broad authority within its boundaries. However, all states are subservient to the national government in Washington, D.C. States enjoy self-government via a governor, a state legislature, a state court system, and federal government representatives.

In a tradition dating to colonial times, four states—Virginia, Massachusetts, Pennsylvania, and Kentucky—formally refer to themselves as commonwealths instead of states. Functionally, they have the same rights and relationships to the federal government as the other states.

The U.S. Constitution defines the concept of states in all of its articles, and its Tenth Amendment guarantees the sovereignty of the United States. However, the idea of U.S. states predates the Constitution. The original United States of America was formed from the thirteen colonies that overthrew English colonial rule and declared sovereign governments united together under the 1777 Articles of Confederation. When the early U.S. confederation faltered, the states reorganized into a federated government under the present-day Constitution, which was drafted in 1787 and ratified in 1788.

Under the democratic federalism prescribed by the Constitution, each state can form an elected government that writes and enforces laws within its boundaries. State governments cannot violate the rules or civil rights enshrined in the Constitution, but they may otherwise draft their own laws via a legislative assembly. Each state has a governor who serves as chief executive and a state supreme court and lower courts that rule on the application of state law. Each state also has a part-time militia, known as the National Guard, led by the governor as commander-in-chief.

Citizens of a state may also send elected representatives to the central government in Washington, D.C. This includes two members of the U.S. Senate for every state. It also includes at least one representative for the House of Representatives and a variable number of electors in the presidential Electoral College, both of which are determined by a state's population. The federal government can appropriate money sent back to state and local governments for local and regional spending.

All land in the United States of America not part of a state is a U.S. territory. Some of the allotments for territorial governments and territory residents include:

• Territorial government: The territories of the United States are directly controlled by the federal government, but they are allowed to establish territorial governments to manage local affairs. The chief minister of a territorial government is typically a governor.
• The Insular Cases: Article IV of the U.S. Constitution makes it clear that Congress has sovereign control over all United States territories, stating: “The Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States; and nothing in this Constitution shall be so construed as to Prejudice any Claims of the United States, or of any particular State.” However, a series of Supreme Court rulings between 1901 and 1905 established that, for practical purposes, territorial governments have wide latitude in setting the laws and regulations for their people.
• Citizenship: Residents of U.S. territories are citizens of the United States, but they do not have voting representation in the United States Congress, nor do they cast binding votes in U.S. presidential elections. Territory citizens may vote in presidential primary elections and they may send non-voting delegates to the House of Representatives.

The United States has sixteen territories. These include Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, Northern Mariana Islands, and the U.S. Minor Outlying Islands (including Midway Atoll, Kingman Reef, Wake Island, Johnston Atoll, and Palmyra Atoll—the last of which is an incorporated, rather than unincorporated, territory).

The District of Columbia is neither a state nor a territory. It does receive Electoral College votes for the U.S. president, but it does not have a voting member in Congress. Its citizens are subject to all U.S. federal law, and they must pay federal income taxes—something that residents of territories do not have to do.

Citizens of both states and territories can serve as military personnel, and males between eighteen and twenty-five must register with the Department of Defense's selective service. However, there are some differences between state and territory resident permissions:

• Voting: State citizens may vote for representatives to the U.S. Senate and House of Representatives, and they may vote for presidential electors in the Electoral College. Territory citizens cannot.
• Taxes: State citizens must pay federal taxes and are subject to all federal laws. Territory citizens do not pay federal income tax, but they typically pay other federal taxes that fund programs such as Social Security.
• Representation: The primary representation of territory residents in Washington, D.C., is through the Department of the Interior, which handles all federal affairs within territories.

U.S states and U.S. territories are part of the United States, and residents born in either a state or a territory are citizens of the United States by birth.

Congress can add new states to the Union as noted in Article IV, Section 3, Clause 1 of the Constitution. To be considered for statehood, the citizens of a territory must affirm by popular vote that they wish to join the United States. The Congress can then admit that territory as a state by a majority vote in both the House of Representatives and the Senate. This prompts the president to sign a resolution declaring the admission of a new state. The most recent territories to achieve statehood were Hawaii and Alaska in 1959.

Get the MasterClass Annual Membership for exclusive access to video lessons taught by the world’s best, including Paul Krugman, David Axelrod, Doris Kearns Goodwin, Karl Rove, Jane Goodall, and more.