State vs. Territory: What’s the difference?

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States and territories differ in terms of government and representation. States are localized forms of domestic government, while territories are areas claimed by national governments. Territories may not have the same voting powers or tax requirements as states. Countries can have both states and territories, with territories having elected governors and legislatures but limited representation in national elections. When a country expands its borders, the new area is usually called a territory. Jurisdictional differences exist between countries, with some having territories but no states.

There are usually some differences between a state and a territory, but the major ones usually have to do with the type of government at play in each, as well as how citizens and residents are represented within the governmental structure more broad. It is important to understand from the outset how the terms ‘state’ and ‘territory’ are also used. These words can and often mean slightly different things in different places. Sometimes “state” is used to describe governmental authority in general, and national governments are often referred to by this term in the international arena. Within a country, a state is usually a localized form of domestic government, as is the case with the 50 United States or Australia’s six states. Territories, on the other hand, are usually areas claimed by national governments, but not always incorporated into them. Residents do not always have the same voting powers or tax requirements and may not enjoy the same privileges as citizens of the states.

Definition and Understanding of “State”

In most cases, a state is a piece of a larger government and often acts as an autonomous structure in its own right. Countries sometimes divide regions into states, each of which then act as autonomous pieces of the larger whole. States are generally bound by the broader general national laws, but are also free to establish their own internal rules and regulations, most of which are created and overseen by local elected officials. State rules usually cannot be broader than national rules, but they can often be narrower.

Another way to think of a state in this sense is as a distinct geographic area with its own autonomous government and national representatives. The difference between a state and a territory in this sense typically revolves around the legal position of the residents. State residents are usually first and foremost citizens of the nation as a whole, but usually also have a vested interest in and are subject to state laws. Most pay taxes to both state and national treasuries, but as a result they also receive benefits such as voting rights, school tuition and library privileges.

Common characteristics of the territories

Territories can be incorporated or unincorporated, organized or unorganized, resulting in four possible combinations or classifications. Generally, when people talk about territories, they mean an organized unincorporated territory. This type of territory has elected governors and legislatures, but citizens cannot vote in national elections and have only one non-voting representative in the national legislature. At the other end of the spectrum, unincorporated and unorganized territory is an area, such as coastal waters or airspace, in which no one lives but which is claimed by a national government.

Countries can have both states and territories. The United States is a good example: It has 50 incorporated states, but also maintains territories in places like Puerto Rico and the US Virgin Islands. Some of the privileges in these places are the same. However, residents cannot elect representatives to Congress and do not have their own local laws; they are affiliated with the United States, and people living there are generally considered citizens, but are subject to the laws of the nation rather than participating in it.

In relation to the expansion of borders
When a country expands its borders, the new area is usually called a territory. For example, almost all US states started out as territories. As the population increased and lines of communication improved, people petitioned the federal government for statehood. Modern Australian states have followed a similar trajectory. In both of these cases, for territories to become states, they first had to become organized incorporated territories.
Special considerations for vessels
In a broader sense, a territory can be any area claimed by a national government. Even a ship at sea can be considered the territory of any flag it flies. Whenever a commercial vessel is sold, it can be “reflagged” and becomes the sovereign territory of the new country. Commercial vessels are generally considered to be organized unincorporated territories.

Jurisdictional differences
A state and a territory can mean different things in different countries. Some countries may have territories but have no states. Often, small islands are territories of a larger country. These can also be called possessions. In the case of uninhabited islands, they are legally referred to as incorporated unorganized territories.




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