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Difference Between State and Federal Court Systems

Difference Between State and Federal Court Systems
Walter Hennery·July 28, 2026·6 min read

The US has two separate court systems " — state and federal. Most cases (90%) are handled in state courts. Here's how to tell which system handles which cases.

State vs. Federal Courts

FeatureState CourtsFederal Courts
Cases handled90% of all cases10% of all cases
JurisdictionState laws, state constitutionsFederal laws, US Constitution
JudgesAppointed or elected (varies by state)Appointed by President, confirmed by Senate
Juries6-12 people (varies by state)6-12 people (federal rules)
AppealsState appellate courts → State Supreme CourtUS Circuit Courts → US Supreme Court

State Court Jurisdiction

  • Criminal cases: Murder, theft, assault, DUI, drug offenses (violating state law)
  • Civil cases: Lawsuits under $75,000, family law (divorce, custody), probate
  • Traffic violations: Speeding tickets, parking tickets
  • Small claims: Disputes under $5,000-10,000 (varies by state)
  • Most everyday legal matters

Federal Court Jurisdiction

  • Federal crimes: Tax evasion, bank robbery, terrorism, drug trafficking across state lines
  • Constitutional issues: Cases involving the US Constitution or federal laws
  • Interstate disputes: Cases between citizens of different states (over $75,000)
  • Bankruptcy: All bankruptcy cases go to federal court
  • Patent, copyright, trademark: Intellectual property cases
  • Federal agencies: Cases against the IRS, EPA, FBI, etc.

The Court Hierarchy

State Courts (Each State Has Its Own)

  1. Trial courts (where cases begin)
  2. Intermediate appellate courts (some states)
  3. State Supreme Court (final state authority)

Federal Courts

  1. District courts (94 districts, trial courts)
  2. Circuit courts of appeals (13 circuits)
  3. US Supreme Court (final federal authority)
The "diversity jurisdiction" rule: Federal courts can hear state-law cases IF the parties are from different states AND the amount in dispute exceeds $75,000. This is why you sometimes see car accident lawsuits in federal court even though car accidents are normally state matters.
⚠️ Common misconceptions:
  • "Federal court is always more serious" " — not necessarily, depends on the case
  • "I can choose which court" " — jurisdiction is determined by law, not preference
  • "State courts are less important" " — state courts handle 90% of cases and affect daily life most
The bottom line: State courts handle 90% of cases: criminal (theft, assault, DUI), civil (divorce, contracts, personal injury), traffic, and small claims. Federal courts handle: federal crimes (tax evasion, bank robbery), constitutional issues, interstate disputes (over $75,000), bankruptcy, and intellectual property. You don't choose " — jurisdiction is determined by the type of case.