<human>:  What is the difference between federal and state taxes?
<bot>: The primary difference between federal and state taxes is that federal taxes are collected by the federal government, while state taxes are collected by individual state governments. Federal taxes are typically used to fund national works, programs and expenditures, while state taxes are used to fund state-level projects and services. Federal taxes are often comprised of income taxes, social security taxes, corporate taxes, payroll taxes, and other taxes, while state taxes are often comprised of individual income taxes, sales taxes, franchise taxes, gasoline taxes, and other taxes.