Collecting and investing in precious metals offers financial opportunities and unique tax considerations. Whether you are buying, selling, or passing down coins as part of an inheritance, understanding the tax rules can help you maximize value while remaining compliant with the law.
Buying and Selling Coins: Tax Considerations
Capital Gains Tax on Coins
The IRS classifies most coins as collectibles. When sold, these are subject to capital gains tax. The rate depends on how long you’ve held the coins:
- Short-Term Gains: Coins held for less than one year are taxed as ordinary income, with rates as high as 37%, depending on income and filing status.
- Long-Term Gains: Coins held for more than one year are taxed at a maximum rate of 28%, which is higher than the 20% rate for most other assets.
Exceptions
IRC Section 408(m)(3)(A) defines exceptions to this rule for coins and metals that are not considered collectibles subject to higher collectible capital gains taxes.
| Metal | Fineness | Examples |
| Gold | .995 (99.5% purity) | Gold Eagles, Gold Maple Leafs |
| Silver | .999 (99.9% purity) | American Silver Eagles |
| Platinum | .9995 (99.95 purity) | American Platinum Eagles |
| Palladium | .9995 (99.95 purity) | American Palladium Eagles |
Are American Gold Eagle Coins Taxable?
Depending on the state you live in, American Gold Eagles may be subject to a sales tax. Furthermore, depending on the length of time you hold them, they will also be subject to either a short term or a long term capital gains tax.
Which Gold Coins Are Tax Free?
- Capital Gains Tax: All gold coins are taxable upon sale if a profit is realized. There are no exceptions.
- IRA-Eligible Coins: Certain coins, such as American Gold Eagles, can be held in self-directed IRAs, deferring taxes until withdrawal.
- Inherited or Gifted Coins: Coins passed through inheritance or as gifts may initially avoid taxes but are taxable upon sale by the recipient.
Sales Tax on Gold Coins
Sales Tax During Purchase
State laws determine whether sales tax applies to gold, silver, and platinum coin purchases. Many states exempt bullion coins like American Gold Eagles from sales tax, but local rules vary.
States With No Sales Tax
After Wisconsin and New Jersey’s recent legislation, 45 states exempt precious metal sales from state taxes in one form or another, though some require minimum purchase amounts or dealer certifications.
Legal Tender Coins
Legal tender coins from the U.S. Mint are often exempt from sales tax due to their status as currency. However, they are still subject to federal capital gains tax upon sale. There are exceptions to this, as there are four states and a district that charge sales tax on all precious metals items: Hawaii, Maine, New Mexico, Vermont, and Washington, D.C.
Inherited and Gifted Gold Coins
Gifts and Exemptions
As of 2025, up to $17,000 worth of coins can be gifted per recipient annually without incurring gift taxes. Inherited coins are valued at fair market value on the date of inheritance, reducing heirs’ taxable gains.
Capital Gains for Recipients
Recipients of gifted or inherited coins owe taxes on any gains when the coins are sold. Profits are calculated based on the value at the time of transfer or the donor’s cost basis.
Exceptions and Loopholes
- IRA-Eligible Coins: Some coins, such as American Gold Eagles and Gold Buffalos, can be held in IRAs, deferring taxes until retirement withdrawals.
- Losses on Gold Coin Sales: Losses may be utilized to offset gains from other investments or reduce taxable income, up to $3,000 annually.
State-Level Taxation Variations
Some states impose full sales tax on gold coins, while others offer exemptions for purchases over specific amounts, based on purity standards, or monetary status.
Dealer Certification Requirements
Certain states require purchases through certified dealers for tax exemptions, and buyers should verify dealer qualifications before making a purchase.
Minimum Purchase Thresholds
Exemptions apply to some purchases exceeding one thousand dollars, encouraging larger investments. For instance, purchases of bullion greater than $1,000 are exempt from state taxes in New York and Maryland.
As tax laws regarding precious metals change regularly, it is advisable to consult your state tax laws or a qualified financial advisor before making large purchases.
