Precious Metals
Tax on Precious Metals: How Are Precious Metals Taxed?
Profits from selling precious metals like gold or silver are typically taxed as capital gains if the value has increased since you bought them. In the U.S., many physical precious metals are treated as collectibles, unless they are held in a precious metals IRA, which means long-term capital gains may be taxed at a higher maximum rate than typical investments.
Many turn to precious metals investing to reap the unique benefits that come with these metals, such as their ability to hedge against inflation and provide sizable returns. Investing in precious metals, such as gold, silver, platinum and palladium, can be a great way to diversify your portfolio. However, like any financial asset, they are subject to taxes. Understanding the tax on precious metals can help you understand the best time to sell, as the capital gains tax on precious metals outside of an IRA can vary significantly depending on whether you held your precious metals for more or less than a year.
In this guide on precious metals taxes, we’ll walk through everything you need to know about taxes on precious metals outside of an IRA like gold, silver, platinum and palladium, from sales tax and capital gains tax to reporting requirements and frequently asked questions.
Before we proceed: this piece is intended for general education, not as tax advice. For the latter, consult with a certified tax professional who can review your particular situation and give you the best personalized advice.
BGG - Table of Contents
Table of Contents
BGG - Key Takeaway
Key Takeaways
- Precious metals may be subject to sales tax depending on the state in which they were purchased, and the rate at which they’re taxed can vary by state.
- When selling precious metals that are not in an IRA, your sale will often be subject to the capital gains tax for collectibles, which is set at a maximum of 28%. This rate is higher than the capital gains tax for most other sales of financial assets, which typically ranges from 15% to 20%.
- Short-term capital gains on precious metals are taxed as ordinary income, which can be more expensive depending on your tax bracket.
- To determine the amount of taxes owed on precious metals, you will need to calculate the cost basis of your metals, which is the total price you paid for your metals, including associated storage fees and other applicable expenses.
- You must report your capital gains on precious metals using Schedule D of Form 1040, and certain transactions may require filing Form 1099-B with the IRS.
- Consider a Precious Metals IRA to avoid or lessen the taxes owed on precious metals. These plans offer tax benefits, such as tax-deferred or tax-free growth.
How Are Precious Metals Taxed?
Do you have to pay taxes on precious metals? In most cases, yes. When buying physical precious metals outside of an IRA, they will be taxed as collectibles, putting them in the same category as stamps, baseball cards, paintings and similar items. The tax on precious metals will vary depending on how long you hold your metals, and this tax is known as capital gains tax.
Along with a capital gains tax on precious metals, you may be responsible for sales tax, depending on the state where you purchased your metals, as well as reporting requirements. Let’s dive into everything you need to know about taxes on precious metals purchased outside of an IRA below.
Sales tax on precious metals
In some cases, there may be sales tax on precious metals, depending on the state in which you live. There are no federal sales taxes, which means states can determine their own sales tax. Some states might charge sales tax when you buy precious metals, while others might not.
For example, in New York State, bullion sales of $1,000 or less are subject to state sales tax, while most sales above $1,000 are exempt unless the sales price for a specific silver coin is greater than or equal to 140% of its value, 120% greater for gold coins, and 115% greater for all other coins.[1] Conversely, states like Texas[2] and Florida[3] do not charge sales tax on precious metals at all. When considering a precious metals purchase, consult with your precious metals dealer to determine whether you’ll owe sales tax.
Capital gains tax on precious metals
If you’ve held precious metals for more than a year, any gains from selling your metals will be taxed as a long-term capital gain. This isn’t the exact same as long-term capital gains in your brokerage account. Collectibles held for less than a year are taxed at the same rate as income taxes. Once they have been held for more than a year, collectibles are taxed as ordinary income but capped at 28%.[4]
As noted by the IRS, the collectibles’ tax rate of 28% is significantly higher than long-term capital gains taxes on other financial assets, which are placed into three brackets: 0%, 15%, and 20%.[5] To reach the top bracket of 20%, you will need to earn $545,400 as a single filer or $613,700 as a joint filer in 2026, which means most taxpayers will fall into the 15% bracket.
While long-term capital gains on collectibles like precious metals are capped at 28%, short-term capital gains are taxed as ordinary income, which, depending on your tax bracket, can be significantly higher than the long-term capital gains rate for collectibles. If you’re in the 32%, 35%, or 37% tax bracket and sell your precious metals within a year or less of owning them, you will be subject to those higher tax rates.[5]
Losses from the sale of precious metals outside of an IRA can be used to offset other capital gains on your taxes. For anyone reporting any losses on these metals, there is a limit of $3,000 of ordinary income ($1,500 if married filing separately) after other capital gains that may be offset with these losses.[4]
Calculating the cost basis of precious metals
The amount of capital gains tax on precious metals outside of an IRA you owe will depend on the cost basis of the metals, which is the total amount you paid for your precious metals, including associated costs such as premiums, commissions, storage, appraisals, and fees. Ensuring an accurate cost basis calculation can help you lower your tax liability.
Let's look at an example to understand the cost basis of precious metals. Suppose you purchased 10 ounces of physical gold at $2,000 per ounce and paid an additional $1,000 in storage and custodian fees. Your cost basis will be:
- Cost basis: (10 oz x $2,000) + $1,000 = $21,000
Then, let's say you sell your gold for $2,500 per ounce.
- Sale proceeds: 10 oz x $2,500 = $25,000
From there, you can calculate your capital gains:
- Capital gains: $25,000 - $21,000 = $4,000
With your capital gains, you can then determine how much tax you owe:
- Taxes owed: $4,000 x 28% (maximum percentage) = $1,120
However, remember that you can combine any capital losses to reduce your tax liability. So, if you sold silver at a $500 loss, the amount of taxes you’d owe in this example would be $620. Or, you can opt for a capital loss carryover to apply to the following year.
Precious metals reporting requirements
To maintain compliance with your precious metal tax obligations, you’ll need to adhere to annual reporting requirements. Reporting requirements for precious metals held outside of an IRA aren’t due at the time of sale but when you file your annual tax return at the end of the year.
- IRS Form 8949: For certain precious metals sales, you will first use IRS Form 8949 to report any sales or transactions regarding your precious metals, including the sale date, sale amount, sale description and cost basis.[6]
- Schedule D of Form 1040: Then, you will transfer the totals from Form 8949 to Schedule D of Form 1040 to report capital gains or losses.[7]
- Form 1099-B: Certain precious metals sales may require you to submit Form 1099-B to the IRS, Proceeds from Broker and Barter Exchange Transactions. This reporting requirement is only applicable to sales of coins containing 90% silver exceeding a face value of $1,000, along with the sale of 25 or more 1 oz Gold Maple Leaf coins, 1oz Gold Krugerrand Coins, and 1 oz Gold Mexican Onza. Sales of American Gold Eagle and Silver Eagle coins are not subject to this reporting requirement. Certain precious metal bars and rounds are also subject to reporting. Purchase quantities of 32.15 troy ounces or more of 99.5% gold bars and rounds, 1,000 troy ounces or more of 99.9% silver bars and rounds, 100 troy ounces or more of 99.95% palladium bars and rounds, and 25 troy ounces or more of platinum bars and rounds are subject to 1099-B reporting.[8]
How Can You Avoid Taxes on Precious Metals?
For physical precious metals held outside of an IRA, you'll need to pay capital gains taxes when you sell it and make a profit, or you'll be taxed at a general rate of 28% for collectibles. Income does come into play here. If you are single, you'll pay no capital gains tax if your income is under $49,450 for 2026, or if you're married filing jointly, the income limit is $98,900.[5]
Outside of that, Precious Metals IRAs are the best option for avoiding or lowering taxes on precious metals. The collectibles’ capital gains tax rate (capped at 28%) only applies to those precious metals held outside of an IRA. With an IRA, you can greatly reduce or avoid the amount of taxes you owe on your precious metals.
Additionally, the structure of your precious metals IRA will determine how they are taxed. With a Traditional Precious Metals IRA, such as a Gold IRA or Silver IRA, taxes on your precious metals will be deferred. So, when gold, silver, platinum and palladium inside of an IRA are converted to cash upon withdrawal or for distributions, they will be taxed as ordinary income. However, for a Roth Precious Metals IRA, such as a Gold Roth IRA, taxes are paid upfront instead of deferring them, meaning distributions from a Roth Precious Metals IRA are tax-free.
When thinking ahead to the annual tax season, you have options when it comes to the type of Precious Metals IRA you choose. Given the types of IRAs available, you can leverage tax benefits alongside the advantages that diversification with gold, silver, platinum and palladium can bring.
Along with taxes, the IRS has several rules surrounding Precious Metals IRAs. Like all individual retirement accounts, Precious Metals IRAs are subject to annual contribution limits. For 2025, the contribution limit for individual retirement accounts was $7,000, or $8,000 for individuals age 50 and older. The 2026 contribution limits increased to $7,500, or $8,600 for individuals aged 50 and older. Additionally, account holders must work with an approved precious metals custodian and store their metals in an approved precious metals depository.
Precious Metals Taxes FAQs
BGG - FAQ
Do I pay taxes if I’m gifted precious metals?
Yes, if you receive precious metals as a gift, you will most likely pay capital gains taxes on them, should you sell them for a profit. The cost basis will be based on the fair market value of the metals at the time the gifter originally purchased the metals, not when you received them.
Do I pay taxes on precious metals I inherited?
If you inherited precious metals after the death of a family member, friend or other party, you will also pay capital gains taxes should you sell them for a profit. However, the cost basis of the precious metals will be equal to the market value of the metals at the time of death of the individual who gave you the precious metals.
When are taxes on precious metals owed?
For states that charge sales tax on precious metals, those taxes will be paid at the time of checkout and calculated by the seller for you. Capital gains taxes on precious metals are owed during tax season when you file and report your taxes. To ensure tax season goes smoothly, keep all related documents on file, such as receipts, acquisition dates, sale prices and dates, and any fees or expenses related to storage, insurance and other costs that can be deducted from your cost basis.
What happens if I lose money selling precious metals?
If you sell your precious metals at a loss, there will be no capital gains, which means you will not owe taxes. Instead, your losses will be viewed as a capital loss. These losses can help offset the losses from other capital gains to reduce your tax liability for the year or be put toward future tax years, as well as offset ordinary income up to a certain limit.4 To best optimize your taxes, consult with your certified public accountant or another tax professional.
Wrapping Up: Understanding Taxes on Precious Metals
While precious metals can be a great way to diversify your portfolio from periods of economic uncertainty and inflation, navigating the tax landscape can be complex. With this guide on precious metals taxes for metals purchased outside of an IRA, you can better understand how capital gains taxes on collectibles like precious metals work, so you can maintain compliance with the IRS.
If you’re looking for a way to avoid or lessen capital gains taxes on precious metals, consider purchasing physical precious metals for placement in a precious metals IRA. Doing so allows you to make withdrawals during retirement that are either taxed as ordinary income or tax-free, depending on your IRA structure. Speak with a Birch Gold Group Precious Metals Specialist to learn more about opening a precious metals IRA or making a cash purchase for physical metals that will be shipped straight to your door.
Get more details on taxes for precious metals. Talk to us today.
BGG - About the Author
About Peter Reagan
Peter Reagan has covered precious metals and the economy for Birch Gold Group for over 15 years. His articles have been featured in several leading publications, including Newsmax and Zerohedge. At Birch Gold Group, Peter leverages his deep market insights to help educate website visitors and customers on why they should consider diversifying their savings into gold and other precious metals, and how that process works. Due to this commitment to education, his content has become a trusted source of information throughout the industry.
BGG - About the Reviewer
About the reviewer Phillip Patrick
Phillip Patrick is a Precious Metals Specialist and spokesman for Birch Gold Group. Born in London, he earned a degree in politics and international relations from the University of Redding, and began his career as a wealth manager at Citigroup in London’s financial center. Since joining Birch Gold in 2012, Phillip has become a trusted voice on economic policy and precious metals, appearing as a guest on dozens of television and podcast platforms, including Newsmax, The Ben Shapiro Show, The Megyn Kelly Show, and Stephen K. Bannon’s War Room. In addition to his contributions on Birch Gold Group's blog, you can watch his interviews on Rumble and follow him on Gettr.
Sources
- New York State Department of Taxation and Finance. Exemption for Certain Precious Metal Bullion. https://www.tax.ny.gov/pdf/memos/sales/m89_20s.pdf
- 34 Tex. Admin. Code § 3.336. Currency, Certain Coins, and Gold, Silver, and Platinum Bullion. https://www.law.cornell.edu/regulations/texas/34-Tex-Admin-Code-SS-3-336
- The Florida Senate. SB 134: Sales Tax Exemption of Bullion. https://www.flsenate.gov/Session/Bill/2025/134/?Tab=BillText
- Internal Revenue Service. Topic no. 409, Capital gains and losses. https://www.irs.gov/taxtopics/tc409
- Internal Revenue Service. "Revenue Procedure 2025-32." https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- Internal Revenue Service. About Form 8949, Sales and Other Dispositions of Capital Assets. 2025. https://www.irs.gov/forms-pubs/about-form-8949
- Internal Revenue Service. About Schedule D (Form 1040), Capital Gains and Losses. https://www.irs.gov/forms-pubs/about-schedule-d-form-1040
- Internal Revenue Service. Instructions for Form 1099-B (2025). https://www.irs.gov/instructions/i1099b
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