US gold tax: capital gains, IRS reporting and state sales tax

This guide explains, in plain English, every US tax that can touch physical gold: federal income tax when you sell, the forms involved, what dealers report to the IRS, and state sales tax when you buy. Every rule is linked to the IRS or a state's own law. It is general information, not tax advice; for your own situation, speak to a CPA or enrolled agent.

How does the IRS tax gold when you sell?

For an investor, gold coins and bars are capital assets. Publication 550 says gold, silver, stamps, coins and gems "are capital assets except when they are held for sale by a dealer", so selling them at a profit creates a capital gain, and selling at a loss creates a capital loss. Publication 544 covers the wider rules for selling and trading assets.

What makes gold different is the rate. Publication 550 defines collectibles gain as gain from selling "a work of art, rug, antique, metal (such as gold, silver, and platinum bullion), gem, stamp, coin, or alcoholic beverage held more than 1 year". IRS Topic 409 then says: "Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate."

Sources: IRS Topic 409, Publication 550, Topic 559, and IRS federal income tax rates. The 10% to 37% range is the federal bracket structure; state income tax is extra in most states.

What counts as "more than one year"?

Topic 409 says you "generally count from the day after the day you acquired the asset" up to and including the day you sell it. So gold bought on March 10, 2026 becomes long term if sold on or after March 11, 2027. Selling a day early can move the whole gain into short-term treatment.

Why the 28% cap matters less than it sounds

The 28% figure is a ceiling, not a flat rate. If your ordinary income tax rate is 22% or 24%, a long-term gold gain is taxed at that lower rate. The cap only helps people in the 32%, 35% and 37% brackets. The catch is in the comparison: a long-term gain on shares or a gold mining stock is usually taxed at 15% or 20%, so physical gold can cost noticeably more tax than a stock with the same profit. If you are weighing other ways to own gold, our guide to physical gold vs gold ETFs compares them, and tax treatment of funds differs by structure.

How do you work out your cost basis?

Your gain is what you receive when you sell, minus your "basis". IRS Publication 551 says "the basis of property you buy is usually its cost", and you may also have to add certain costs related to buying it. For gold, a reasonable starting point is the full price on your dealer invoice, which already includes the premium over spot. Ask your tax adviser how to treat shipping, insurance, card fees and any sales tax you paid.

On the selling side, the amount you receive is what the dealer actually pays you, not the spot price. Dealers buy back below the retail price, as our guide to gold dealer spreads shows. A rising spot price does not always mean a taxable profit once you account for the premium you paid and the lower buyback price.

If you bought the same coin at different times, keep each purchase separate. Identify which coins you are selling so you can match them to the right invoice and holding period.

Inherited or gifted gold follows different basis rules. Publication 551 says you cannot use cost for property received as a gift or inheritance; inherited property generally takes its value at the date of death. Get advice before selling inherited coins.

Worked example: selling five Gold Eagles

This illustration uses round numbers, not live prices. Today's spot price is ... per ounce (Loading).

Suppose you buy five 1 oz American Gold Eagles for a total invoice of $21,500. More than a year later you sell all five to a dealer for $25,000. Your gain is $3,500.

Simplified: assumes the whole gain falls in one bracket and ignores state income tax and the 3.8% net investment income tax. The share column is only for comparison and assumes the applicable 0%, 15% or 20% long-term rate. The IRS computes the exact figure using the Schedule D Tax Worksheet.

Two lessons stand out. First, for most middle-income buyers, holding longer than a year does not reduce the federal rate on gold at all, because their ordinary rate is already under 28%. Second, the gap with shares is real: a buyer in the 24% bracket pays $315 more tax on this gold gain than on the same gain from a stock.

Which IRS forms are involved?

Form 8949 and Schedule D: you report the sale

Topic 409 says to "calculate capital gain or loss on Form 8949" and then "summarize capital gains and deductible capital losses on Schedule D (Form 1040)". Long-term collectibles gains feed into the 28% rate gain line on Schedule D. You must report a taxable sale whether or not you receive a form from the dealer.

Form 1099-B: when does a dealer report your sale?

Less often than many people assume. The Form 1099-B instructions cover "a sale of a precious metal (gold, silver, platinum, or palladium) in any form", but a sale is not reportable unless the Commodity Futures Trading Commission (CFTC) has approved trading in that form by regulated futures contract. Even then, it is not reportable if the quantity "is less than the minimum required quantity" under the contract.

• Sales by one customer within a 24-hour period are added together to test the minimum.
• The IRS example: selling a single gold coin needs no 1099-B if every CFTC-approved gold coin contract calls for delivery of at least 25 coins.
• The exception does not apply if the dealer knows or has reason to know a customer is splitting sales to avoid reporting.

The IRS does not publish a list of specific coins or bar sizes. Lists circulating online (often naming Krugerrands, Maple Leafs and kilo bars) are dealers' own readings of futures contract specifications, so we do not reproduce them here. Ask your dealer whether it will issue a 1099-B before you sell. Our guide to selling gold covers the process.

Form 8300: large cash purchases and sales

This one is filed by the business, not you. The IRS Form 8300 reference guide says a business must report cash of more than $10,000 received in one transaction or related transactions, within 15 days. Payments within 24 hours count as one transaction. Cash means notes and coins; cashier's checks, bank drafts and money orders of $10,000 or less also count when used in "designated reporting transactions", which include retail sales of collectibles. Bank wires and personal checks do not count. The dealer must send you a written statement by January 31 of the next year. Splitting a payment to dodge the report (structuring) is illegal.

Do you pay sales tax on gold in the US?

There is no federal sales tax. Each state decides, and online dealers generally charge based on the ship-to address. Rules fall into three groups: full exemption, exemption above a minimum order, and fully taxable. The seven states below were checked against each state's own law or revenue department on October 11, 2026.

A summary, not tax advice. Local rates vary and states change these rules: Washington's exemption ended under ESSB 5794 (2025). New York's rule also caps the premium over metal value (for example 115% for bars and most coins), so rare coins can be taxable.

Two practical points. A small order, such as one 1/10 oz coin, can fall below the Massachusetts, New York and California minimums and be taxed. And sales tax adds directly to your cost basis problem: you start further behind the spot price. Compare delivered prices on our premium tracker, and see our US buying guide for dealers that show tax at checkout.

How is gold in an IRA taxed?

IRAs follow separate rules. Publication 590-A says an IRA's investment in collectibles (which include metals and coins) is generally treated as a distribution. The exception: "Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins", and "certain gold, silver, palladium, and platinum bullion". The metal must be held by the IRA's trustee or custodian. Gains inside the account are not taxed each year; tax depends on whether it is a traditional or Roth IRA when you take money out. Fees for storage and administration are usually higher than for owning coins directly. See our gold IRA guide and gold IRA fees before deciding.

What records should you keep?

• Every purchase invoice: date, product, quantity, price paid, shipping and any sales tax.
• Every sale receipt: date, buyer, product, quantity and the amount received.
• Proof of payment (bank statement or wire confirmation).
• For inherited gold, a dated valuation near the date of death.
• Any Form 1099-B or Form 8300 statement you receive.

Keep records until the period for assessing tax on the year you sell has passed; for gold you may hold for decades, that means keeping the purchase invoice for the whole time you own it. A photo or PDF stored somewhere other than your safe is sensible.

Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.