State and Local Tax Variation for Precious Metals and Collectible Coins

Precious metals (such as gold, silver, platinum, and palladium) and collectible coins are subject to a patchwork of state and local tax regulations across the United States. The most common taxes that may apply are sales tax, use tax, and occasionally local taxes (such as county or city sales taxes). The tax treatment can significantly impact the total cost of acquiring or selling these items, and the rules can change frequently.

Sales Tax
Variability by State: Some states impose sales tax on the purchase of precious metals and collectible coins, while others exempt them entirely or only tax certain transactions.
Exemptions: Many states offer full or partial exemptions for precious metals and coins, especially if the items are intended for investment rather than numismatic (collectible) purposes. Exemptions may depend on:
The type of metal (e.g., bullion vs. numismatic coins)
The purity** of the metal
The transaction amount (some states exempt purchases over a certain dollar threshold)
Whether the buyer is an individual or a business
Examples:
No Sales Tax: States like Alaska, Delaware, Montana, New Hampshire, and Oregon do not have a state sales tax, so these products are generally tax-free.
Exemptions: Texas, Florida, and many others exempt bullion (defined by specific purity and form) from sales tax but may tax commemorative or collectible coins.
Taxed: California taxes purchases under $1,500 but exempts larger transactions. States like Hawaii and New Jersey generally tax all such purchases.

If you purchase precious metals or coins out-of-state or online and bring them into a state that taxes such items, you may owe a use tax at the same rate as the sales tax. This is often self-reported and less frequently enforced but is still a legal obligation.

Some states allow cities or counties to levy additional sales taxes. Even if the state exempts bullion, a local jurisdiction might still impose a tax unless it is also specifically exempted.

Generally refers to gold, silver, platinum, or palladium in bar, round, or certain coin form, valued by metal content rather than rarity or condition.
Collectible/Numismatic Coins: Coins whose value is primarily based on rarity, demand, and condition. Some states treat these differently from bullion for tax purposes.
Different Taxation: In some states, numismatic coins are always taxable, while investment-grade bullion is exempt.

States may periodically change their tax laws regarding precious metals and coins, so it is necessary to check with state revenue departments or reputable dealers for current information.
The tax treatment is usually determined by the location of the buyer (the “ship-to” address), not the seller.