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The Statue of Liberty is located on Liberty Island in Upper New York Bay southwest of the island of Manhattan.

Liberty Island is a federal property located in New York State, specifically the 8th District of New York, which includes much of the West Side and Downtown areas of Manhattan and parts of Brooklyn.

Liberty Island is located in territorial waters belonging to the state of New Jersey, but the island itself is part of New York State. In 1664, when the colonial charter for New Jersey was issued, the border between New York and New Jersey was set at the waterfront on the New Jersey side. In 1834, the states of New York and New Jersey updated their understanding of the border between them, dividing the water in half, but placing all of the islands in New York state.

In 1998, New Jersey won a lawsuit regarding ownership of Ellis Island. In its ruling, the Court upheld the agreement of 1834, granting all "natural" islands to New York, but because Ellis Island is an "unnatural" or man-made island built after 1834 and located within New Jersey's territorial waters, the court granted ownership to New Jersey.

The state of New Jersey has never disputed the ownership of Liberty Island, but New Jersey does provide the island with its electricity and its water and sewerage.

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