Gold Tax in the USA: Sales Tax & Collectible Rules

There is no federal sales tax in the USA — sales tax is set by states, and their treatment of bullion varies widely. Many states exempt investment-grade bullion entirely; some exempt purchases above a threshold (for example, $1,000 or $1,500); a few tax bullion like any other purchase. The difference can be several percent of the price.

Buying from an out-of-state dealer does not automatically avoid the tax: your home state may impose use tax on the purchase. And jewellery is taxed as a retail good in most states that have sales tax — the bullion exemption, where it exists, generally does not cover jewellery.

For federal tax, gold is classified as a collectible. Gains on gold held for more than a year are taxed at a maximum rate of 28% — higher than the 0%/15%/20% long-term capital gains rates that apply to stocks. Gold held for a year or less is taxed as ordinary income, at your marginal rate.

The 28% rate is a maximum, not a flat rate: if your ordinary income tax rate is lower than 28%, you pay your lower rate on the gain. But for higher earners, the collectible rate is a real cost of owning physical gold — and one reason some investors prefer gold mining stocks, which are taxed as ordinary equities.

Gold ETFs that hold physical gold are also taxed as collectibles in the USA — the IRS looks through the fund to the gold it holds. So an investor in a gold ETF faces the same 28% maximum rate on long-term gains as a holder of physical coins. Gold mining ETFs, which hold shares rather than metal, are taxed as ordinary equities instead.

This is a quirk worth knowing before choosing between a gold ETF and a mining ETF: the two are taxed differently even though both give exposure to gold. The difference only matters when you sell at a gain, but it can be several percentage points of the profit.

A gold IRA lets you hold physical gold inside an Individual Retirement Account, with the same tax treatment as other IRA assets: traditional IRA gold grows tax-deferred and is taxed as income on withdrawal; Roth IRA gold grows tax-free if the rules are met. The gold must be held by an approved custodian — you cannot keep IRA gold at home.

Gold IRAs carry higher fees than regular IRAs (custodian fees, storage fees, dealer spreads), so compare the total cost carefully. For many investors, holding a gold ETF inside a regular IRA achieves the same tax result more cheaply — though without the physical metal.

To calculate your gain, you need your cost basis — what you paid, when, and what you paid in premiums, shipping and fees (which generally add to the basis). Without receipts, you cannot prove your basis, and the IRS may treat the entire sale proceeds as a gain. Keep every receipt, invoice and shipping record for every purchase.

Dealers report certain large sales to the IRS (Form 1099-B applies to some bullion sales above thresholds), but reporting does not replace your own records — the dealer reports the sale price, not your gain. Your records are what determine your tax.