US sales tax on gold and silver
Bullion is exempt in many states. Jewelry generally is not. A few states only exempt above an invoice threshold — pick your state below to see which applies.
Value & buy-tax calculator
Metal value & US sales tax
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Choose a state to see how it treats this item.
Shops usually pay less than melt (scrap bid). This is metal value only.
Details
Melt value is spot × troy ounces × purity. The tax side uses a simplified table of public state rules — general rate for jewelry, and the common investment-bullion exemption for bars and coins, with the invoice thresholds some states apply. These are simplified public rules and can go stale. The rate field starts at the state base rate; add county and city on top yourself. Verify current status with your state revenue department before a large purchase.
Bullion and jewelry are taxed differently
The single most important thing to understand about US sales tax on precious metals is that what you bought matters more than what it is made of. Most states draw a line between investment bullion and everything else, and the two sides of that line are treated in opposite ways.
Jewelry is a retail product. A gold chain, a ring, a bracelet — these are consumer goods, and in almost every state with a sales tax they are taxed at the general rate. It makes no difference that the item is 22K, or that you are buying it partly as a store of value. Scrap jewellery sold to a refiner follows the same logic.
Investment bullion is often exempt. Many states exempt qualifying bullion bars, rounds and legal-tender coins from sales tax, on the reasoning that taxing an investment vehicle at the point of purchase is a tax on saving rather than on consumption. Where that exemption exists, a one-ounce Eagle or a kilo bar can carry no sales tax at all.
Three patterns to know
States fall into roughly three groups, and the calculator above uses this structure:
- Exempt. Qualifying investment bullion and legal-tender coins carry no sales tax. This is the largest group.
- Exempt above a threshold. A handful of states only grant the exemption once a single invoice exceeds a set amount — commonly $1,000, and $2,000 in California. Below that figure, ordinary sales tax applies. This catches people out: splitting a purchase into smaller orders can cost you the exemption.
- No exemption. A minority of states tax bullion like any other good.
Fineness usually matters too. Exemptions are generally written around investment-grade metal, so a 14K item will not qualify even if it is sold as a bar.
Base rate is not your rate
The rate the calculator starts with is the state base rate. Your actual combined rate is almost always higher, because counties, cities and special districts add their own percentages on top. In parts of California and Louisiana the combined rate runs several points above the state figure. That is why the rate field is editable — look up your combined local rate and type it in.
Tax is also normally charged on the total invoice including any dealer premium, not on melt value alone. The calculator estimates from melt, so if you are paying a premium over spot, your real tax will be slightly higher.
An estimate, not advice
These are simplified public rules and they go stale. States change bullion legislation regularly, thresholds get revised, and the precise definition of “qualifying” varies. This page is a starting point for a conversation with your dealer or your state revenue department, not a substitute for either. Nothing here is tax advice.