States vs. the federal government: who does what

Federalism means that power in the United States is divided between one national government in Washington and 50 state governments. Each has its own constitution, legislature, courts, and taxes. The federal government handles matters such as defense, currency, and immigration. States handle most of what touches daily life, including schools, most crime, marriage, and driving. When the two validly conflict, federal law wins.

How the Constitution divides power

The Constitution lists what the federal government can do, mostly in Article I, Section 8. The Tenth Amendment reserves everything else to the states or the people. In principle, Washington has limited, listed powers, while states have a general "police power" to protect health, safety, and welfare.

In practice, federal reach is much wider than the list suggests. Courts read the power to regulate interstate commerce broadly, and Congress uses grant money to steer states. The national drinking age is a classic example: Congress did not set it directly, but a 1984 law cut highway funds to any state that kept a limit below 21, and every state complied.

Federal governmentState governmentsBoth
Defense and declaring warPublic schools and curriculaTaxation
Foreign policy and treatiesMost criminal lawCourts and law enforcement
CurrencyMarriage, divorce, family lawRoads and infrastructure
Immigration and naturalizationProperty and inheritance lawBorrowing money
Interstate and foreign commerceDriver's licenses and traffic rulesEnvironmental rules
Patents, copyright, postal serviceProfessional licensingPublic health
Social Security and MedicareRunning electionsMedicaid (jointly funded)

States also delegate power downward. Counties, cities, and school districts run police, zoning, and schools. They have only the authority their state gives them, which is why local government varies so much. Each state's government mirrors the federal model, with a governor, a legislature (two chambers everywhere except Nebraska), and a supreme court. For the national structure, see the US federal system.

How much states differ

Crossing a state line can change your taxes, your rights, and what is legal. These examples use 2026 figures, which change often.

Taxes

StateIncome taxSales tax (state + local)
TexasNone6.25%, up to 8.25% with local tax
FloridaNone6%, plus local surtaxes
California1% to 13.3%7.25%, more with local tax
New York4% to 10.9%4%, about 8.875% in New York City
Oregon4.75% to 9.9%None

Nine states have traditionally levied no general tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Washington does tax some capital gains, and in 2026 it enacted a 9.9% tax on income above $1 million, due to start in 2028 and already under legal challenge. Everyone also pays federal income tax. See our guide to US taxes.

Crime and punishment

Work, health, and family

When state and federal law collide

The Supremacy Clause in Article VI makes the Constitution and valid federal laws the "supreme law of the land." A state cannot override them, and federal courts settle the disputes. Three limits keep this from being total:

Conflicts run in both directions. Democratic-led states have sued Republican administrations, and Republican-led states have sued Democratic ones, on issues from immigration to environmental rules. California's stricter car emissions standards have been a long-running dispute with Washington. Historically, far graver fights over states' rights lay behind the Civil War and the resistance to civil rights laws in the 1960s.

Why the system exists, and the debate over it

The 13 former colonies were unwilling to give up their independence to a new central power, having just fought one. Federalism was the compromise that made the 1787 Constitution possible.

Supporters say it keeps decisions close to voters, lets people with different values live under different rules, and spreads power. Justice Louis Brandeis called the states "laboratories" of democracy, because one state can try a policy before others copy it.

Critics say it makes rights and services depend on where you live, adds complexity for people and businesses, and can push states to compete by cutting taxes and regulation. Which side people take often depends on the issue and on who controls Washington at the time.

Comparing with Europe

US states have more autonomy than the regions of France or Italy, including their own criminal codes and income taxes. Germany, Austria, and Belgium are federal too, but their states mostly share a common national body of criminal and civil law. The European Union is a tempting comparison, but it only goes so far: US states have no armed forces, no currency, and no foreign policy of their own, and their residents have one citizenship and move freely among them.

Frequently asked questions

What is the difference between state and federal government?

The federal government covers the whole country and deals with defense, foreign policy, currency, immigration, and interstate commerce. State governments cover one state and handle most schools, crime, family law, licensing, and elections. Both tax you, and both have their own courts.

Does federal law override state law?

Yes, when a valid federal law genuinely conflicts with a state law, under the Supremacy Clause in Article VI. States can still set stronger protections where federal law only sets a minimum, as many do with the minimum wage.

Can a state ignore a federal law?

Not legally. A state can refuse to use its own officials to enforce a federal program, and it can sue to challenge a law, but it cannot cancel one. Federal agencies can still enforce the law inside that state.

Why do laws differ so much from state to state?

Because the Constitution left most everyday law to the states, and each state has its own voters and legislature. Unless federal law or the Constitution sets a rule, states are free to go their own way.

Can a state leave the United States?

No. The Supreme Court ruled in Texas v. White (1869), after the Civil War, that states cannot secede unilaterally.

Related articles: