Home / Sales tax on precious metals by state
Investing in precious metals like gold and silver offers a hedge against economic uncertainty and a means of diversifying investment portfolios. Investors often seek ways to buy gold and silver tax-free while maintaining their privacy. While the IRS mandates reporting for specific sales and buyback transactions, not every precious metal purchase requires documentation. When looking into tax-free buying and selling, it’s important to understand IRS reporting requirements, which can vary by state.
Understanding the taxation implications, especially in jurisdictions like Texas, is crucial for investors. Let's delve into the key points to help clarify the taxation of precious metals.
Texas Precious Metal Sales Tax
Texas does not tax the sale of gold, silver, or platinum bullion, including numismatic coins, as of 2013. This exemption does not apply to gold, silver, or platinum bullion in the form of jewelry or other adornment items.
Before 2013, investors who bought less than $1,000 worth of precious metals had to pay a 6.25% tax. However, Texas repealed this law, making all precious metal purchases tax-exempt. Additionally, Texas, being among the states without a personal income tax, exempts capital gains tax.
Purchasing precious metals in Texas incurs no tax, encouraging small investors and boosting the availability of bullion. This tax exemption applies to gold, silver, and platinum investments.
Shopping with the U.S. Gold Bureau | Storage at the Texas Bullion Depository
Many states charge sales tax on the purchase of precious metals and other items that we sell on our website. Taxes can vary based on the type of metal, the dollar amount and even the premium charged for an item. The exact rules are quite complex, so we use the largest provider of state tax information in the nation to determine the taxes due for each order, based on all these criteria.
To find out if there will be sales tax due on your order, add the desired items to your shopping cart and enter your shipping address during the checkout process. The website will automatically calculate the sales tax due -- based on the exact items in your cart and your shipping address.
In the State of Texas, sales of gold and silver are not subject to sales tax. If shipping an order to your state would cause you to incur sales tax for silver and gold bullion, coins or rare coins, you can prevent being charged sales tax on your order by storing your items at the Texas Bullion Depository. Since the order will not have a shipping address to your state, no state sales tax will be due.
For more information, contact your Account Manager.
California Precious Metal Sales Tax
California has a 7.5% sales tax on bullion coins and bars. However, California has a statewide exemption on precious metal purchases above $1,500. This means that investors who buy more than an ounce of gold or silver from one dealer will not need to pay any tax.
In addition, local counties and cities may impose a sales tax. However, due to the large amount of state tax, most local municipalities impose a small percentage of sales tax.
When selling gold or silver for a profit, you are expected to file a tax report for the Federal Capital Gains Tax. This is charged at a maximum of 28%, but the actual rate will depend on your personal income.
Florida Precious Metal Sales Tax
Florida's state sales tax rate is 6%, but local municipalities add an additional 1–2% on average. However, there are several exemptions to the sales tax on precious metals in Florida.
If you buy precious metals totaling over $500, you are exempt from taxes. All US legal tender, including items like the Silver Eagle and other products minted by the US Mint with face value, qualifies for tax exemption, regardless of the total purchase amount being under $500. Foreign coins are sold above face value, so they are taxable.
New York Precious Metal Sales Tax
All precious metal sales beyond $1,000 are tax-exempt in New York. Sales tax does not apply to purchases if the total amount exceeds $1,000 USD and the following premiums are not surpassed:
- 140% for silver coins
- 120% for gold coins that weigh 1/4 troy oz or less
- 115% to all other coins
According to Tax.NY.gov, any bullion purchased exempt under the new provision of law but later converted to self-use would be subject to sales or use tax.
Pennsylvania Precious Metal Sales Tax
Pennsylvania has a 6% state sales tax, but luckily there are exemptions for bullion and precious metal coins. These exemptions include:
- Standard gold and silver bars
- Coins such as the Maple Leaf, the Gold and Silver Panda, the US Eagle, the Perth Mint Lunar Series, and the Silver Britannia
- Bullion
- Investment metal
- Numismatic coins
- Legal tender
Illinois Precious Metal Sales Tax
Illinois has a 6.25% sales tax on products, and some counties and municipalities may add an additional 1%–3.75%. However, there are exemptions to the sales tax for precious metals, including:
- Legal tender
- Currency
- Coins
- Bullion
- Medallions made from precious metals like gold or silver
- Gold or silver coinage issued by the State of Illinois, the government of the United States, or the government of any foreign country
Ohio Precious Metal Sales Tax
As of July 6, 2021, Ohio no longer taxes the sale of gold, silver, platinum, and palladium. However, some places may charge additional fees. For example, in Columbus, the total sales tax is 7.5%.
Georgia Precious Metal Sales Tax
Georgia does not have a sales tax on precious metals, including gold, silver, and platinum bullion. This exemption applies to all legal tender, whether minted in the United States or other countries.
North Carolina Precious Metal Sales Tax
North Carolina's state sales tax rate for precious metals is 4.75%. However, local taxes can increase the total tax rate to 7.5%.
Michigan Precious Metal Sales Tax
Michigan has a 6% sales tax, but bullion and investment coins are exempt from sales and use tax. Bullion is defined as gold, silver, or platinum in a bulk state, with a purity of at least 900 parts per 1,000.
Each state has its own definition of bullion, precious metals, etc. For purposes of the chart, bullion will follow the Texas definition in 34 TAC §3.336: (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Bullion--Gold, silver, or platinum that is formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in gold, silver, or platinum. (2) Currency--The coin and paper money of the United States or another country that is designated as legal tender and circulates and is customarily used and accepted as a medium of exchange in the country of issuance. (3) Numismatic coin--A coin that is not used as a medium of exchange or whose price depends more on characteristics such as beauty, rarity, and condition than on its metal content or its face value. (b) Taxability of sales of gold, silver, or numismatic coins, and gold, silver, or platinum bullion. Effective October 1, 2013, the sale of gold, silver, or numismatic coins or of gold, silver, or platinum bullion is exempt from Texas sales and use tax. (1) This exemption does not include gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the form of jewelry or other items of adornment. (2) The purchase of a commodity contract for items exempt under this subsection is not a taxable transaction. (c) Taxability of currency exchanges. The exchange of currency for another form of currency based on an exchange rate is not a taxable transaction if the invoice, receipt, billing, sales slip or ticket, or contract issued to the customer identifies the exchange rate. (d) Taxability of the sale of certain paper money. The sale of paper money that is not currency is taxable as the sale of tangible personal property. Sales or use tax is due on the total sales price of the paper money. (e) Use of gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items. Persons who use gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items owe tax on the transaction based on the sales price of the taxable item.
Many states charge tax for the sale or purchase of precious metals. Learn how each state matches up, and understand the added security & potential savings state sponsored depository storage through the Texas Bullion Depository can offer over local storage.
State & Local Tax Laws For Precious Metals Purchases:
State / Local Sales Tax Applies to:
- ArkansasBullion and numismatic coins are subject to sales tax.
- District of Columbia:Bullion and numismatic coins are subject to sales tax.
- Hawaii:Bullion and numismatic coins are subject to General Excise tax.
- Indiana:Bullion and numismatic coins are subject to sales tax.
- Kansas:Bullion and numismatic coins are subject to sales tax.
- Kentucky:Bullion and numismatic coins are subject to sales tax.
- Maine:Bullion and numismatic coins are subject to sales tax.
- Mississippi:Bullion and numismatic coins are subject to sales tax.
- New Jersey:Bullion and numismatic coins are subject to sales tax.
- New Mexico:No state tax exists on bullion or numismatic coins, but a gross receipts tax (on sellers) is imposed.
- North Carolina:Bullion and numismatic coins are exempt from sales tax.
- Tennessee:Bullion and numismatic coins are subject to sales tax.
- Vermont:Bullion and numismatic coins are subject to sales tax.
- West Virginia:Bullion and numismatic coins are subject to sales tax.
- Wisconsin:Bullion and numismatic coins are subject to sales tax.
Exempt Upon Certain Conditions:
- California:Monetized bullion and numismatic coins exceeding $1,500 have a bulk sales tax exemption.
- Connecticut:Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000.
- Florida:Bullion and numismatic coins are exempt from sales tax if sale exceeds $500.
- Maryland:Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000.
- Massachusetts:Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000.
- New York:No sales tax is imposed on precious metal bullion or numismatic coin transactions over $1,000. However, the consideration may not exceed the value of the precious metal content of 140% for silver, 120% for gold and 115% for other precious metals. Also, there is a sales tax on precious metal bullion that has been manufactured, processed, assembled, fabricated or used for an industrial, aesthetic or artistic purposes.
- Virginia:Bullion and numismatic coins are exempt from sales tax if sale exceeds $1,000. (No requirement that the precious metals be of the same type.)
- Wyoming:Gold and silver used as legal tender are exempt.
NOT Taxable (Exempt):
- Alabama:Bullion and numismatic coins are exempt from sales tax.
- Arizona:Bullion and numismatic coins are exempt from sales tax.
- Colorado:Bullion is exempt. Not all numismatic pieces are exempt. Jewelry and commemoratives are taxable.
- Georgia:Bullion and numismatic coins are exempt from sales tax. Proper documentation is needed.
- Idaho:Bullion and numismatic coins are exempt from sales tax.
- Illinois:Bullion and numismatic coins are exempt from sales tax.
- Iowa:Bullion and numismatic coins are exempt from sales tax.
- Louisiana:Bullion is exempt.
- Michigan:Bullion and numismatic coins are exempt from sales tax.
- Minnesota:Bullion and numismatic coins are exempt from sales tax.
- Missouri:Bullion and numismatic coins are exempt from sales tax.
- Nebraska:Bullion and numismatic coins are exempt from sales tax.
- Nevada:Bullion is exempt. It is taxable if the sales price exceeds the face value of numismatic coins by 50 percent.
- North Dakota:Bullion and numismatic coins are exempt from sales tax.
- Ohio:Bullion and numismatic coins are exempt from sales tax.
- Oklahoma:Bullion and numismatic coins are exempt from sales tax. Fabricated metals that are processed or manufactured for artistic use or as jewelry are taxable.
- Pennsylvania:Bullion and numismatic coins are exempt from sales tax.
- Rhode island:Bullion and numismatic coins are exempt from sales tax. Fabricated precious metal that has been processed or manufactured for one or more specific and customary industrial, professional or artistic uses is not exempt.
- South Carolina:Bullion and numismatic coins are exempt from sales tax.
- South Dakota:Bullion and numismatic coins are exempt from sales tax.
- Texas:Bullion and numismatic coins are exempt from sales tax.
- Utah:Bullion and numismatic coins are exempt from sales tax.
- Washington:Bullion and numismatic coins are exempt from sales tax.
No State Sales Tax:
- Alaska:Bullion and numismatic coins are exempt from sales tax.
- Delaware:No State Sales Tax (Bullion and numismatic coins are exempt).
- Montana:Bullion and numismatic coins are exempt from sales tax.
- New Hampshire:No State Sales Tax (Bullion and numismatic coins are exempt).
- Oregon:No state sales tax, Bullion and numismatic coins are exempt.
Online Sales Tax
The Supreme Court's 2018 decision in South Dakota v. Wayfair Inc. reshaped online sales tax rules, enabling states to impose taxes on online purchases. This includes transactions involving precious metals, subjecting buyers to state and local taxes based on shipping addresses. Buyers must be aware of tax rates and product taxability, with exceptions in certain states like Alaska, Delaware, and New Hampshire.
State-Specific Tax Laws
State regulations play a significant role in determining sales tax requirements for precious metals. While Texas does not impose sales taxes on purchases of precious metals, certain products like copper and palladium items are subject to sales taxes in the state. Buyers must navigate state laws and tax rates, ensuring compliance with regulations.
Capital Gains Tax Considerations
Profits from the sale of precious metals may be subject to capital gains tax, with rates varying based on holding periods. While Texas does not levy sales tax on precious metals purchases, investors should consult tax professionals regarding capital gains tax implications, which are subject to U.S. law.
Regulatory Landscape and Trustworthiness
Unlike the banking industry, the precious metals industry remains largely unregulated. While purchases are non-reportable events, transparency and due diligence are essential. Buyers should research reputable dealers like the U.S. Gold Bureau and consider factors such as customer reviews, Better Business Bureau ratings, and industry reputation.
Navigating Taxation
For investors, understanding the taxation of precious metals is paramount. While purchases are generally tax-exempt in Texas, nuances exist, especially concerning certain products and sales tax laws. Consultation with tax professionals and thorough research can help investors navigate tax implications and make informed decisions.
While precious metals offer tangible assets for investors, awareness of taxation nuances, particularly in jurisdictions like Texas, is critical for maximizing investment returns and ensuring compliance with regulatory requirements.
