Taxation of Precious Metals and IRS Requirements

How to Buy Gold and Silver Tax-Free

 

Can I Buy Gold and Silver Tax-Free?

When investing, many people try to find how to buy gold and silver tax-free. We understand that many investors and collectors want to keep their privacy when making purchasing decisions related to buying and selling gold and silver. However, the IRS mandates that we have to report particular sales and some buyback transactions. 

But, not every purchase or sale of precious metals needs to be documented and reported. With Bullion Exchanges, you can learn how to sell and buy gold and silver tax-free without losing your privacy. Keep in mind that IRS reporting requirements can vary by state and change. Therefore, always double-check information where you live before you buy.

Why is there an Online Sales Tax?

When you want to buy gold and silver tax-free, do not forget that certain states charge a sales tax, even if you buy online. This is because, in June 2018, the Supreme Court decided to reverse the 1992 precedent from the court case in Quill, North Dakota. The original case was Quill Corp v. North Dakota (“Quill”) in which North Dakota said it was missing out on sales tax from online shoppers and wanted to charge tax on items shipped to the state. At this time, the court ruled in favor of the company, noting that because Quill Corp. had no physical presence in North Dakota, the state could not demand sales tax.

However, in 2018, the South Dakota v. Wayfair Inc court case reversed this ruling. South Dakota claimed that it was losing revenue from local sales tax, especially because online shopping has expanded significantly. This time, the court ruled in favor of the state. As a result, online stores are now required to abide by sales tax rules incumbent on the state retailers ship to.

Therefore, even though many of our customers shop online, you may be subject to state and local tax. Certain factors that may affect your order include tax on particular individual products or taxes on the entire order. Additionally, the tax rate is subject to vary. These factors are derived from the address we are shipping your order to, and this includes if we are shipping to a storage facility. 

Sales Tax Laws by State

When you want to buy gold and silver tax-free, be sure to check your local and state laws before you buy. Here at Bullion Exchanges, we want to make it easy for our customers. We compiled a list of the most current tax laws, simplified. We hope you find this information helpful and feel free to use this page to find out more about your state’s tax laws. Don’t forget, you can always reach out to a tax professional, and you should definitely rely on your state’s websites for more up-to-date information.

Not every state charges online sales tax. If you are buying online and shipping to another state, whichever state we ship to is the one you will pay tax for if required. All sales taxes for orders from Bullion Exchanges will be calculated at checkout. Sales tax calculation is based on the state’s taxability of the specified products and the exact tax rates set forth by the taxing jurisdiction of the address we ship to. You can buy gold and silver tax-free from Bullion Exchanges online if you are ordering from Alaska, Delaware, New Hampshire, Montana, and Oregon. These states do not impose any online sales tax as of 2020. 

Here’s a list of states that apply online sales tax, and which bullion and/or numismatic products are affected by tax.

 


Alabama


State information

Alabama sales tax applies to specific products only, all other products are exempt. Alabama collects flat-rate Simplified Sellers Use Tax of 8% on:

  • All copper products.

  • All numismatic coins with a value exceeding the precious metal content resulting from rarity, condition, age, etc.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Alaska


State Information

As of this writing, Alaska does not collect sales tax. For more updated information, please check the Alaska State Department of Revenue website. Please note, Bullion Exchanges does not currently ship to Alaska.

Arkansas


State Information

Arkansas sales tax is applied to all items Bullion Exchanges sells and ships to the state. The sales tax rate is calculated when you complete checkout.

Arizona


State Information

Arizona sales tax applies to specific items only. Any items not specified are not taxed by the state of Arizona. Sales taxes are applied to:

  • All copper products.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

California


State Information

California sales tax is collected on specific products only. Any items not specified are not taxed. California sales tax applies to:

  • Non-monetized bullion consisting of copper, silver, gold, platinum, or palladium. This includes bullion products that were smelted/refined, and its value is based on its precious metal content, not on the form it arrives in.

  • Monetized bullion, which are coins or any kind of currency made from a precious metal that can be used as legal tender (or has status equal to legal tender) in California, the US, and the world. 

  • Numismatic coins with a value exceeding the precious metal content resulting from rarity, condition, age, etc. if the total amount sold at one time is under $1,500 USD. Single sales transactions are taxed, which is calculated based on individual invoices, not on a line-item basis. 

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Colorado


State Information

Colorado sales tax only applies to specified products. Anything not listed here is not taxable by Colorado. Sales tax for Colorado applies to:

  • All copper products.

  • Specific numismatic and bullion coins. This means precious metals coins and bullion that are not, and have never been, used as currency or any other kind of economic exchange in the world.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.) 

Connecticut


State Information



Connecticut sales tax is only applied to specific products that we sell and ship to in Connecticut. Anything not on the list is not taxed by Connecticut. Sales tax for Connecticut applies to:

  • All copper, platinum, and palladium products.

  • Precious metal numismatic coins that are not and have never been used as legal tender based under any government in the world. 

  • Any single sales transaction consisting of gold and silver when the total sale value is less than $1,000 USD.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.) 

  • District of Columbia

Delaware


State Information

As of this writing, Delaware does not collect sales tax. For more up-to-date information, please check the Delaware State Department of Revenue website.

District of Columbia


State Information

Washington DC sales tax applies to all items Bullion Exchanges sells and ships to the state. The sales tax rate is calculated when you complete checkout.

Florida


State Information

At this time, Florida does not require remote sellers to collect sales tax. This information is subject to change, so check the official Florida State Department of Revenue website for up-to-date information.

Georgia


State Information

Georgia sales taxes apply to specific products. Anything not listed here is not taxable by Georgia. Sales tax for Georgia applies to:

  • All copper or palladium products.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Hawaii


State Information

Hawaii applies general excise taxes on all items sold and shipped to the state. The sales tax rate is calculated when you complete checkout. Bullion Exchanges does not currently ship to Hawaii, however.

Idaho


State Information

Idaho sales taxes apply to specific products. Anything not listed here is not taxable by the state. Sales tax for Idaho applies to:

  • All copper products.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Illinois


State Information

Illinois sales tax is applied only to specified products. Anything not listed here is not taxable by Illinois. Sales tax for Illinois applies to:

  • All copper or palladium products.

  • Any bullion product manufactured with a purity of less than .980.

  • Any coins issued by a US state aside from Illinois.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Indiana


State Information

Indiana sales tax is applied only to specified products. Anything not listed here is not taxable by Indiana. Sales tax for Indiana applies to:

  • All copper products.

  • All numismatic coins.

  • Specific numismatic and bullion coins. This means precious metals coins and bullion that are not, and have never been, used as currency or any other kind of economic exchange in the world.

  • Any gold coins, bars, or rounds below .995 purity.

  • Any silver coins, bars, or rounds below a purity of .9995.

  • Any palladium coins, bars, or rounds below a purity of .9995.

  • Any coins that are not American Eagles, American Eagle Proof coins, or coins not issued under US Law.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Iowa


State Information

Iowa sales tax applies to specific products. Anything not listed here is not taxable by Iowa. Sales tax for Iowa applies to:

  • All copper bullion products.

  • Any coins that are not, and have never been, used as currency or any other kind of economic exchange in the world.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Kansas


State Information



Kansas sales tax is applied only to specified products. Anything not listed here is not taxable by Kansas. Sales tax for Kansas applies to:

  • All copper products.

  • All coins that are not made of gold or silver.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Bullion Exchanges is registered and responsible for collecting tax through eBay.

Kentucky


State Information

Kentucky applies excise taxes on all items Bullion Exchanges sells and ships to the state. The sales tax rate is calculated when you complete checkout.

Louisiana


State Information

Louisiana sales tax is applied only to specified products. Anything not listed here is not taxable by Louisiana. Sales tax for Louisiana applies to:

  • All copper or palladium products.

  • All coins made of copper and palladium except numismatic coins.

  • Any individual sale of numismatic coins if the total sale value is greater than $1,000 USD. Single sales transactions are taxed, which is calculated based on individual invoices, not on a line-item basis. 

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Maine


State Information

Maine sales tax applies to all items Bullion Exchanges sells and ships to the state. The sales tax rate is calculated when you complete checkout.

Maryland


State Information

Maryland sales tax applies to specific items only. Anything not listed here is not taxable by the state of Maryland. Sales taxes are applied to:

  • All copper products.

  • Any single sales transaction consisting of gold, silver, platinum, or palladium when the total sale value is less than $1,000 USD.

  • All numismatic coins.

  • Coins or any kind of currency made from a precious metal that are not or have never been used as a medium of exchange in the world. 

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Massachusetts


State Information

Massachusetts sales tax is only applied to specific products that we sell and ship to in Massachusetts. Anything not on the list is not taxed by Massachusetts. Sales tax for Massachusetts applies to:

  • All copper, platinum, and palladium products.

  • Any single sales transaction consisting of numismatic coins when the total sale value is less than $1,000 USD.

  • Any single sales transaction consisting of gold and silver products that are not numismatic coins when the total sale value is less than $1,000 USD.

  • Any single sales transaction consisting of gold or silver legal tender of any country when the total sale value is less than $1,000 USD.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Michigan


State Information

Michigan sales tax is only applied to specific products that we sell and ship to in Michigan. Anything not on the list is not taxed by Michigan. Sales tax for Michigan applies to:

  • All copper or palladium products.

  • Any gold, silver, or platinum products with a purity of less than .900.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Minnesota


State Information

Minnesota sales tax is only applied to specific products that we sell and ship to in Minnesota. Anything not on the list is not taxed by Minnesota. Sales tax for Minnesota applies to:

  • Any legal tender coin made of gold, silver, or other precious metal that is or has been used as a means of exchange. 

  • Any gold, silver, platinum, or palladium bullion bars or rounds that are made of .999+ purity and are inscribed with the weight, purity, and content.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Mississippi


State Information

Mississippi applies use taxes on all items Bullion Exchanges sells and ships to the state of Mississippi. The sales tax rate is calculated when you complete checkout.

Missouri


State Information

At this time, Missouri does not require remote sellers to collect sales tax. This information is subject to change, so check on the official Missouri Department of Revenue website for up-to-date information.

Montana


State Information

As of this writing, Montana does not collect sales tax as a whole. For more updated information, please check the Montana State Department of Revenue website.

Nebraska


State Information

Nebraska sales tax is applied only to specified products. Anything not listed here is not taxable by Nebraska. Sales tax for Nebraska applies to:

  • All copper bullion products.

  • Coins that are currently not and have never been used as legal tender.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Nevada


State Information

Nevada sales tax is applied only to specified products. Anything not listed here is not taxable by Nevada. Sales tax for Nevada applies to:

  • All copper products.

  • Coins and bullion that are not used as a medium of exchange.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

New Hampshire


State Information

As of this writing, New Hampshire does not collect sales tax as a whole. For more updated information, please check the New Hampshire State Department of Revenue website.

New Jersey


State Information

New Jersey sales tax applies to all items Bullion Exchanges sells and ships to the state of New Jersey. The sales tax rate is calculated when you complete checkout.

New Mexico


State Information

New Mexico sales tax applies to all items Bullion Exchanges sells and ships to the state of New Mexico. The sales tax rate is calculated when you complete checkout.

New York


State Information

New York sales tax is applied only to specified products.Single sales transactions are taxed, which is calculated based on individual invoices, not on a line-item basis. Anything not listed here is not taxable by New York. Sales tax for New York applies to:

  • All copper products.

  • All bullion products if the total value of the sale is less than $1,000 USD. 

  • All bullion products if the total value of the sale is greater than $1,000 USD and the bullion products were also further enhanced, processed, assembled or otherwise altered by the buyer.

  • All bullion products if the total value of the sale is greater than $1,000 USD and the price of the products is valued for more than its metal content.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

North Carolina


State Information

North Carolina sales tax is applied only to specified products. Anything not listed here is not taxable by North Carolina. Sales tax for North Carolina applies to:

  • All copper products.

  • Any products that have not gone through a smelting or refining process.

  • All coins whose value does not exceed its statutory or nominal value.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

North Dakota


State Information

North Dakota sales tax is applied only to specified products. Anything not listed here is not taxable by North Dakota. Sales tax for North Dakota applies to:

  • All copper products.

  • All precious metal bullion that has not been refined to at least a .999 purity.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Ohio


State Information

Ohio sales tax applies to all items Bullion Exchanges sells and ships to the state of Ohio. The sales tax rate is calculated when you complete checkout.

Oklahoma


State Information

Oklahoma sales tax is applied only to specified products. Anything not listed here is not taxable by Oklahoma. Sales tax for Oklahoma applies to:

  • All copper products.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Oregon


State Information

As of this writing, Oregon does not collect sales tax as a whole. For more updated information, please check the Oregon State Department of Revenue website.

Pennsylvania


State Information

Pennsylvania sales tax is applied only to specified products. Anything not listed here is not taxable by Pennsylvania. Sales tax for Pennsylvania applies to:

  • All copper products.

  • Coins that are currently not and have never been used as legal tender in the US or any country.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Rhode Island


State Information

Rhode Island sales tax is applied only to specified products. Anything not listed here is not taxable by Rhode Island. Sales tax for Rhode Island applies to:

  • All copper products.

  • Any bullion products that have not gone through a smelting or refining process.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

South Carolina


State Information

South Carolina sales tax is applied only to specified products. Anything not listed here is not taxable by South Carolina. Sales tax for South Carolina applies to:

  • All copper or palladium products.

  • Coins that are currently not and have never been used as legal tender in the US or any country.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

South Dakota


State Information

South Dakota sales tax is applied only to specified products. Anything not listed here is not taxable by South Dakota. Sales tax for South Dakota applies to:

  • All copper products.

  • All numismatic coins with a value exceeding the precious metal content resulting from rarity, condition, age, etc.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Tennessee


State Information

Tennessee sales tax applies to all items Bullion Exchanges sells and ships to the state of Tennessee. The sales tax rate is calculated when you complete checkout.

Texas


State Information

Texas sales tax is applied only to specified products. Anything not listed here is not taxable by Texas. Sales tax for Texas applies to:

  • All copper or palladium bullion products.

  • All copper, platinum, and palladium coin products.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Utah


State Information

Utah sales tax is applied only to specified products. Anything not listed here is not taxable by Utah. Sales tax for Utah applies to:

  • All copper or palladium bullion products.

  • All bullion products made of gold, silver, or platinum if the content is below 50%.

  • All numismatic coins except those that are used as legal tender.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Vermont


State Information

Vermont sales tax applies to all items Bullion Exchanges sells and ships to the state of Vermont. The sales tax rate is calculated when you complete checkout.

Virginia


State Information

Virginia sales tax is applied only to specified products. Anything not listed here is not taxable by Virginia. Sales tax for Virginia applies to:

  • All copper or palladium bullion products.

  • All coins that are used as a medium of exchange if the total value of the sale is less than $1,000 USD. 

  • All numismatic coins if the coins cannot be used as a medium of exchange, and if the total value of the sale is under $1,000 USD.

  • All gold, silver, or platinum bullion if the total value of the sale is under $1,000 USD.

  • All gold, silver, or platinum bullion if the metals are not refined in any way.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

Washington


State Information

Washington State sales tax is applied only to specified products. Anything not listed here is not taxable by Washington. Sales tax for Washington applies to:

  • All copper products.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

West Virginia


State Information

West Virginia sales tax is applied only to specified products. Anything not listed here is not taxable by West Virginia. Sales tax for West Virginia applies to:

  • All copper products except for numismatic coins, or is a form of money or legal tender with a fair market value higher than its face value.

  • Any products that have not gone through a smelting or refining process.

  • Any product that has been smelted or refined in some way, but is sold in a state where its value is derived from its form rather than its content.

  • All coins that are not numismatic coins and are not used as money or legal tender.

  • All coins that are used as money/legal tender but their fair market value does not exceed its face value.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.

Wisconsin


State Information

Wisconsin sales tax applies to all items Bullion Exchanges sells and ships to the state of Wisconsin. The sales tax rate is calculated when you complete checkout.

Wyoming


State Information

Wyoming sales tax is applied only to specified products. Anything not listed here is not taxable by Wyoming. Sales tax for Wyoming applies to:

  • All copper products.

  • All uncoined bullion of any precious metal content.

  • Accessories, such as holders, tubes, coin flips, and similar apparel.

  • Processed items, which means products that were processed by third parties and have more value than its original precious metals content (e.g. colorized coins, black ruthenium/gold plated coins, etc.)

 

The information given about precious metal taxes in this article is just a general guide and should not be misunderstood as tax advice. Seeking professional assistance is advised for any specific information regarding precious metal tax rules and regulations. Detailed information can also be found at www.irs.gov.

 

Capital Gains Tax on Gold, Silver, and All Precious Metals

When you sell gold, silver, and other precious metals, you might be wondering if you need to pay taxes on the sale. Because gold, silver, and platinum are considered capital assets, capital gains taxes could potentially apply to your items.  

The IRS identifies precious metals as collectibles, so they could be taxed at a maximum gains rate of around 28%. This does not mean every product has this high 28% rate attached: Capital gains taxes vary by the item.  

But, taxes for your bullion will not be calculated until after the sale of your item(s). Therefore, if you have any precious metals in your ownership (or in a depository), the capital gains tax is not yet applied. It will, however, be calculated according to how long you held onto the precious metals, and the ordinary income tax rate. So, the capital gains tax also varies depending on whether it is short-term or long-term. 

Sometimes people receive precious metals as a gift or an inheritance. If you sell them for more than what you paid for, then it is most likely you will have to pay tax when you sell your product. If you sell them at a loss, however, no capital gains taxes applied. Capital gains tax is not automatically calculated during the sale, and it must be recorded on your annual tax filings. You only need to pay this tax once a year.   

We make no claims this overview is accurate and it is not meant to be interpreted as tax advice. Therefore, Bullion Exchanges recommends you discuss this with your CPA or tax professional for more information.