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.
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Alabama |
Alabama sales tax applies to specific products only, all other products are exempt. Alabama collects flat-rate Simplified Sellers Use Tax of 8% on:
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Alaska |
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. |
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Arkansas |
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. |
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Arizona |
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:
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California |
California sales tax is collected on specific products only. Any items not specified are not taxed. California sales tax applies to:
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Colorado |
Colorado sales tax only applies to specified products. Anything not listed here is not taxable by Colorado. Sales tax for Colorado applies to:
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Connecticut |
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:
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Delaware |
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. |
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District of Columbia |
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. |
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Florida |
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. |
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Georgia |
Georgia sales taxes apply to specific products. Anything not listed here is not taxable by Georgia. Sales tax for Georgia applies to:
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Hawaii |
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. |
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Idaho |
Idaho sales taxes apply to specific products. Anything not listed here is not taxable by the state. Sales tax for Idaho applies to:
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Illinois |
Illinois sales tax is applied only to specified products. Anything not listed here is not taxable by Illinois. Sales tax for Illinois applies to:
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Indiana |
Indiana sales tax is applied only to specified products. Anything not listed here is not taxable by Indiana. Sales tax for Indiana applies to:
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Iowa |
Iowa sales tax applies to specific products. Anything not listed here is not taxable by Iowa. Sales tax for Iowa applies to:
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Kansas |
Kansas sales tax is applied only to specified products. Anything not listed here is not taxable by Kansas. Sales tax for Kansas applies to:
Bullion Exchanges is registered and responsible for collecting tax through eBay. |
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Kentucky |
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. |
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Louisiana |
Louisiana sales tax is applied only to specified products. Anything not listed here is not taxable by Louisiana. Sales tax for Louisiana applies to:
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Maine |
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. |
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Maryland |
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:
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Massachusetts |
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:
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Michigan |
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:
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Minnesota |
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:
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Mississippi |
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. |
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Missouri |
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. |
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Montana |
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. |
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Nebraska |
Nebraska sales tax is applied only to specified products. Anything not listed here is not taxable by Nebraska. Sales tax for Nebraska applies to:
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Nevada |
Nevada sales tax is applied only to specified products. Anything not listed here is not taxable by Nevada. Sales tax for Nevada applies to:
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New Hampshire |
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. |
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New Jersey |
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. |
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New Mexico |
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. |
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New York |
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:
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North Carolina |
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:
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North Dakota |
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:
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Ohio |
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. |
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Oklahoma |
Oklahoma sales tax is applied only to specified products. Anything not listed here is not taxable by Oklahoma. Sales tax for Oklahoma applies to:
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Oregon |
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. |
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Pennsylvania |
Pennsylvania sales tax is applied only to specified products. Anything not listed here is not taxable by Pennsylvania. Sales tax for Pennsylvania applies to:
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Rhode Island |
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:
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South Carolina |
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:
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South Dakota |
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:
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Tennessee |
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. |
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Texas |
Texas sales tax is applied only to specified products. Anything not listed here is not taxable by Texas. Sales tax for Texas applies to:
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Utah |
Utah sales tax is applied only to specified products. Anything not listed here is not taxable by Utah. Sales tax for Utah applies to:
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Vermont |
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. |
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Virginia |
Virginia sales tax is applied only to specified products. Anything not listed here is not taxable by Virginia. Sales tax for Virginia applies to:
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Washington |
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:
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West Virginia |
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:
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Wisconsin |
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. |
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Wyoming |
Wyoming sales tax is applied only to specified products. Anything not listed here is not taxable by Wyoming. Sales tax for Wyoming applies to:
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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.
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