Gold has been in the news a lot since it rose in value by more than 50% this year to a high price of more than $4,000 per ounce.
It was already big news when Costco started selling gold a few years ago, but the recent price increase has only made it even more popular.
But one thing that isn’t discussed as often is the role of sales taxes. Some states collect on gold, others don’t.
In the great state of Maryland we now have to pay sales tax when we buy gold. Before July 1, 2025, there was an exemption for the purchase of precious metals over $1,000. That exemption was repealed by House Bill 352 and now we have to pay a 6% sales tax on all precious metal purchases…unless you buy it at the Baltimore Convention Center. 🤔
If gold costs $4,000 an ounce, I have to pay $4,240 to buy in nearby Delaware what would only cost $4,000.
In some states, you are exempt if the purchase is for investment purchases, often determined by the difference in the retail price and face value of the metal or in the purity of the precious metal being sold. In other states, all Precious metals and legal tender coins are exempt from sales tax. And then of course there are those great states that don’t charge sales taxes at all (look at Alaska, Delaware, Montana, New Hampshire and Oregon).
If you buy an ounce of gold from Costco (assuming it’s 24kt, meaning it’s 99.9%+ pure gold), here’s a list of states and whether you’ll have to pay sales tax on your purchase (this table is based on great research by GR reserve):
| Stands | Probably taxed on 1 oz of 99.9% pure gold bar? | Notes on Exemptions/Avoidance | Official source Recent changes |
|---|---|---|---|
| Alabama | No | Completely exempt; 99.9% pure bars qualify for exemption | |
| Down | Possible local tax | No state tax; Local taxes may apply | |
| Arizona | No | Completely exempt; 99.9% pure bars qualify | |
| Arkansa | No | Completely exempt; 99.9% pure bars qualify | |
| California | Maybe | Exempt for purchase >$2,000; 99.9% pure bars qualify for exemption | CA CDTFA Regulation 1599 |
| Colorado | No | Completely exempt; 99.9% pure bars qualify | |
| Connecticut | Maybe | Exempt for purchase > $1,000; 99.9% pure bars qualify | CPMEX Connecticut Tax Guide |
| Delaware | No | No sales tax | |
| Florida | Maybe | Exempt for purchase >$500; 99.9% pure bars qualify | |
| Georgia | No | Completely exempt; 99.9% pure bars qualify | |
| Hawaii | Possibly | Excise tax applies; no known exemption for precious metals | |
| Idaho | No | Completely exempt; 99.9% pure bars qualify | |
| Illinois | Maybe | Exemption depends on purity and product type; 99.9% bars probably qualify | |
| Indiana | No | Completely exempt; 99.9% pure bars qualify | |
| Iowa | No | Completely exempt; 99.9% pure bars qualify | |
| Kansas | No | Completely exempt; 99.9% pure bars qualify | |
| Kentucky | No | Completely exempt; 99.9% pure bars qualify | |
| Louisiana | No | Completely exempt; 99.9% pure bars qualify | |
| Maine | No | Completely exempt; 99.9% pure bars qualify | |
| Maryland | Yes | 6% sales tax after July 2025; no exemption except Baltimore Convention Center | Maryland legislation HB0357 |
| Massachusetts | No | Completely exempt; 99.9% pure bars qualify | |
| Michigan | No | Completely exempt; 99.9% pure bars qualify | |
| Minnesota | No | Completely exempt; 99.9% pure bars qualify | |
| Mississippi | No | Completely exempt; 99.9% pure bars qualify | |
| Missouri | No | Completely exempt; 99.9% pure bars qualify | |
| Montana | Possible local tax | No state tax; check local jurisdictions | |
| Nebraska | No | Completely exempt; 99.9% pure bars qualify | |
| Nevada | Possible local tax | No state tax; check local jurisdictions | |
| New Hampshire | No | No sales tax | |
| New Jersey | No | Exempt if eligible investment precious metal (99.9% bars eligible) | NJ Department of Taxes |
| New Mexico | No | Completely exempt; 99.9% pure bars qualify | |
| New York | Maybe | Depending on premium, purity and product type; 99.9% pure bars often qualify | |
| North Carolina | No | Completely exempt; 99.9% pure bars qualify | |
| North Dakota | No | Completely exempt; 99.9% pure bars qualify | |
| Ohio | Maybe | Exempt if they meet purity standards (99.9% bars qualify) | |
| Okla | No | Completely exempt; 99.9% pure bars qualify | |
| Oregon | No | No sales tax | |
| Pennsylvania | No | Completely exempt; 99.9% pure bars qualify | |
| Rhode Island | No | Completely exempt; 99.9% pure bars qualify | |
| South Carolina | No | Completely exempt; 99.9% pure bars qualify | |
| South Dakota | Possible local tax | No state tax; check local jurisdictions | |
| Tennessee | No | Completely exempt; 99.9% pure bars qualify | |
| Texas | No | Completely exempt; 99.9% pure bars qualify | |
| Utah | No | Completely exempt; 99.9% pure bars qualify | |
| Vermont | No | Completely exempt; 99.9% pure bars qualify | |
| Virginia | No | Exemption extended until July 2026; 99.9% bars qualify | Virginia Tax Ruling 23-117 |
| Washington | Yes | Taxable from January 2026 (~10% total tax); no exemptions for bullion bars | WA notice from the department of revenue |
| West Virginia | No | Completely exempt; 99.9% pure bars qualify | |
| Wisconsin | No | Completely exempt; 99.9% pure bars qualify | |
| Wyoming | Possible local tax | No state tax; check local jurisdictions |
⚠️ Washington residents considering gold bullion have until January 2026 to avoid paying a 10% sales tax!
REMARK: As always, you should check with a local expert or local sales tax laws and regulations. There are too many jurisdictions for any single source to be definitive, especially given the way laws and regulations change. Therefore, first check your own jurisdiction.
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