Gold has been in the news a lot since it’s shot up over 50% in value this year to the lofty price of over $4,000 an ounce.
It was already big news when Costco started selling gold a few years ago, the recent run up in price has only made it even more popular.
But one thing that isn’t discussed nearly as often is the role of sales tax. Some states collect it on gold, others don’t.
In the great state of Maryland, we now have to pay sales tax whenever we buy gold. Prior to July 1st, 2025, there was an exemption on precious metals purchases over $1,000. That exemption was repealed by House Bill 352 and now we must pay a 6% state sales tax on all precious metals purchases… unless you buy it at the Baltimore Convention Center. 🤔
If gold is $4,000 an ounce, I have to pay $4,240 to buy what would cost only $4,000 in nearby Delaware.
In some states, you are exempt if the purchase is for investment purchases, often determined by the difference in the sale price and the 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 lovely states that don’t assess a sales tax at all (looking at you Alaska, Delaware, Montana, New Hampshire, and Oregon).
If you’re buying an ounce of gold from Costco (assuming it’s 24kt which means it’s 99.9%+ pure gold), here is a list of states and whether you will have to pay sales tax on your purchase (this table was built off great research by GR Reserve):
| State | Likely Taxed on 1 oz 99.9% Pure Gold Bar? | Notes on Exemptions / Avoidance | Official Source Recent Changes |
|---|---|---|---|
| Alabama | No | Fully exempt; 99.9% pure bars qualify for exemption | |
| Alaska | Possible local tax | No state sales tax; local taxes may apply | |
| Arizona | No | Fully exempt; 99.9% pure bars qualify | |
| Arkansas | No | Fully exempt; 99.9% pure bars qualify | |
| California | Maybe | Exempt if purchase > $2,000; 99.9% pure bars qualify for exemption | CA CDTFA Regulation 1599 |
| Colorado | No | Fully exempt; 99.9% pure bars qualify | |
| Connecticut | Maybe | Exempt if purchase > $1,000; 99.9% pure bars qualify | CPMEX Connecticut Tax Guide |
| Delaware | No | No sales tax | |
| Florida | Maybe | Exempt if purchase > $500; 99.9% pure bars qualify | |
| Georgia | No | Fully exempt; 99.9% pure bars qualify | |
| Hawaii | Possible | Excise tax applies; no known exemption for precious metals | |
| Idaho | No | Fully exempt; 99.9% pure bars qualify | |
| Illinois | Maybe | Exemption depends on purity & product type; 99.9% bars likely qualify | |
| Indiana | No | Fully exempt; 99.9% pure bars qualify | |
| Iowa | No | Fully exempt; 99.9% pure bars qualify | |
| Kansas | No | Fully exempt; 99.9% pure bars qualify | |
| Kentucky | No | Fully exempt; 99.9% pure bars qualify | |
| Louisiana | No | Fully exempt; 99.9% pure bars qualify | |
| Maine | No | Fully 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 | Fully exempt; 99.9% pure bars qualify | |
| Michigan | No | Fully exempt; 99.9% pure bars qualify | |
| Minnesota | No | Fully exempt; 99.9% pure bars qualify | |
| Mississippi | No | Fully exempt; 99.9% pure bars qualify | |
| Missouri | No | Fully exempt; 99.9% pure bars qualify | |
| Montana | Possible local tax | No state tax; check local jurisdictions | |
| Nebraska | No | Fully 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 qualifying investment bullion (99.9% bars qualify) | NJ Division of Taxation |
| New Mexico | No | Fully exempt; 99.9% pure bars qualify | |
| New York | Maybe | Depends on premium, purity, and product type; 99.9% pure bars often qualify | |
| North Carolina | No | Fully exempt; 99.9% pure bars qualify | |
| North Dakota | No | Fully exempt; 99.9% pure bars qualify | |
| Ohio | Maybe | Exempt if meets purity standards (99.9% bars qualify) | |
| Oklahoma | No | Fully exempt; 99.9% pure bars qualify | |
| Oregon | No | No sales tax | |
| Pennsylvania | No | Fully exempt; 99.9% pure bars qualify | |
| Rhode Island | No | Fully exempt; 99.9% pure bars qualify | |
| South Carolina | No | Fully exempt; 99.9% pure bars qualify | |
| South Dakota | Possible local tax | No state tax; check local jurisdictions | |
| Tennessee | No | Fully exempt; 99.9% pure bars qualify | |
| Texas | No | Fully exempt; 99.9% pure bars qualify | |
| Utah | No | Fully exempt; 99.9% pure bars qualify | |
| Vermont | No | Fully exempt; 99.9% pure bars qualify | |
| Virginia | No | Exemption extended through July 2026; 99.9% bars qualify | Virginia Tax Ruling 23-117 |
| Washington | Yes | Taxable starting Jan 2026 (~10% total tax); no exemptions for bullion bars | WA Department of Revenue Notice |
| West Virginia | No | Fully exempt; 99.9% pure bars qualify | |
| Wisconsin | No | Fully exempt; 99.9% pure bars qualify | |
| Wyoming | Possible local tax | No state tax; check local jurisdictions |
⚠️ Residents of Washington who are considering gold bullion, you have until January 2026 to avoid paying a sales tax of 10%!
NOTE: As always, confirm with a local expert or with local laws and ordinances on sales tax. There are too many jurisdictions for any single source to be definitive, especially given how laws and ordinances change, so check with yours first.
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About Jim Wang
Jim Wang is a forty-something father of four who is a frequent contributor to Forbes and Vanguard’s Blog. He has also been fortunate to have appeared in the New York Times, Baltimore Sun, Entrepreneur, and Marketplace Money.
Jim has a B.S. in Computer Science and Economics from Carnegie Mellon University, an M.S. in Information Technology – Software Engineering from Carnegie Mellon University, as well as a Masters in Business Administration from Johns Hopkins University. His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life.
One of his favorite tools (here’s my treasure chest of tools, everything I use) is Empower Personal Dashboard, which enables him to manage his finances in just 15-minutes each month. They also offer financial planning, such as a Retirement Planning Tool that can tell you if you’re on track to retire when you want. It’s free.
Opinions expressed here are the author’s alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.
