Gold has been making headlines lately, soaring over 50% in value this year to an impressive price of over $4,000 per ounce. This surge has not only captured the attention of investors but has also increased its popularity among consumers.
Costco’s entry into the gold market a few years ago was already significant, but the recent price hike has further fueled interest in purchasing gold. However, one aspect that often goes unnoticed is the role of sales tax, which varies significantly from state to state. While some states impose sales tax on gold purchases, others do not.
In Maryland, for instance, buyers are now required to pay sales tax on gold purchases. Prior to July 1, 2025, there was an exemption for precious metals purchases exceeding $1,000. This exemption was repealed by House Bill 352, meaning that all precious metals purchases are now subject to a 6% state sales tax—unless you happen to buy at the Baltimore Convention Center. 🤔
To put this into perspective, if gold is priced at $4,000 an ounce, a Maryland resident would pay $4,240 for that ounce, compared to just $4,000 in nearby Delaware.
In various states, exemptions may apply, particularly for investment purchases. These exemptions are often determined by the difference between the sale price and the face value of the metal, or by the purity of the precious metal being sold. Some states exempt all precious metals and legal tender coins from sales tax, while others, like Alaska, Delaware, Montana, New Hampshire, and Oregon, do not impose any sales tax at all.
If you’re considering buying an ounce of gold from Costco (assuming it’s 24kt, which means it’s 99.9%+ pure gold), here’s a breakdown of states and their sales tax policies regarding such purchases. This information is based on thorough 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 should be aware that they have until January 2026 to avoid a sales tax of approximately 10%!
NOTE: Always confirm with a local expert or check local laws and ordinances regarding sales tax. Given the complexity and variability of regulations, it’s crucial to verify the specifics for your jurisdiction.
