Is There Sales Tax on Gold and Silver in California?
More states are eliminating sales taxes on precious metal bullion purchases, helping investors lower investment costs while making strides toward viewing gold and silver as currency rather than commodities.
Taxes on purchases made on our website are automatically calculated based on state rules and the specific tax rates for your delivery address. Bullion and numismatic coins exceeding $1,500 in one transaction qualify for exemption from use taxes.
Taxes on Gold & Silver
Purchases of precious metal bullion can be complex in states that charge sales taxes. While each state sets its underlying rate, cities and counties may add extra charges on top. Before making your purchase, make sure that any relevant local rules have been considered; as a good general guideline only buy from sellers who adhere to state taxation guidelines.
Most purchasers of precious metals purchase small amounts incrementally over years as part of a long-term savings plan, creating a hedge against economic instability and other risky investments. States understand the significance of supporting wealth diversification efforts like this one; yet when states impose sales taxes on purchases of gold and silver, this effectively penalises these investors who follow sound financial practices while actively encouraging riskier alternatives.
As such, many states have abolished sales taxes on precious metal bullion; currently Vermont, Maine, Tennessee, Kentucky and Wisconsin still apply sales taxes. Furthermore, following South Dakota vs Wayfair decision by U.S. Supreme Court online dealers must collect sales taxes even without physical presence in state.
States with sales taxes on precious metals are at a competitive disadvantage relative to neighboring states that have forgone this practice, which further undermines their competitive edge. Furthermore, states imposing sales taxes on gold and silver do their citizens no favor by discouraging them from purchasing assets which provide protection from inflation. Therefore, all states should acknowledge gold’s unique role as money by ending sales taxes for its purchase as well as creating state bullion depositorys.
Taxes on Silver
California, the most populous US state, has a long and rich history with gold. California was host to one of America’s greatest gold rushes and its modern economy continues to rely heavily on precious metals; therefore California boasts many coin and bullion dealers.
Investors frequently purchase precious metals as an economic hedge against economic instability and market turmoil; however, purchasing precious metals can become expensive once fees, commissions and sales tax are included; these costs could reduce returns expected.
As a result, it is crucial that you understand what taxes apply when making purchases in California. Our mission at CBMint is to assist with making an informed decision when shopping for silver and gold in California; for this purpose we have provided below an outline of relevant state and local sales/use taxes in this State.
Please keep in mind that the information listed above may change due to individual cities and counties updating their sales tax rates, making these figures just a guideline; please check with your city and county offices for up-to-date sales tax details before making a purchase decision.
State laws vary widely when it comes to how they define “precious metals.” Some states exclude them from sales taxes entirely, while others impose them only on certain categories or in specific regions. Other states require buyers to pay both a percentage plus base rate plus processing fee in addition to buying their metal. Luckily, CBMint provides an online sale tax calculator so you can see exactly how much your total costs will be before buying silver and gold from us, giving you confidence that everything is accurate and fair.
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