Guide · Updated October 2026
Capital Gains Tax on Gold
Sell gold for more than you paid, and the IRS wants its share — at a rate schedule unique to collectibles. Physical gold, silver, platinum and palladium held outside retirement accounts are “collectibles” for capital-gains purposes under IRC §1(h)(4): long-term gains top out at 28%, not the 15–20% that applies to stocks. Short-term gains use ordinary bracket rates. Inside an IRA the whole framework disappears — no capital gains exist there — which is why this page belongs on a gold IRA tax site. Educational information, not tax advice; checked October 2026.
The 28% Capital Gains Tax Ceiling on Gold
The long-term capital gains ladder for 2026 runs 0%, 15%, and 20% for most assets. Collectibles — precious metals among them — climb the same ladder but hit a ceiling at 28%. The precise mechanic:
| Holding period | Rate on a gold gain (outside IRA) |
|---|---|
| 1 year or less | Ordinary income — your bracket rate |
| More than 1 year | Your long-term rate (0/15/20%) capped at 28% |
Read that second row carefully: the ceiling caps, it does not set. A single filer in the 24% bracket pays 24% on a long-term gold gain — the 28% figure only binds high earners whose ordinary rates exceed it. (A 3.8% net investment income tax can stack on top for incomes above the statutory thresholds, under §1411 — the same way it stacks on stock gains.)
The effective comparison to stocks is therefore bracket-dependent: in the 24% bracket, gold and stock long-term gains are taxed alike; at the top rate, the gold gain pays 28% + NIIT against the stock gain’s 20% + NIIT — an 8-point spread that is the honest cost of holding metal in a taxable account.
What Counts as a Collectible: Gold Bullion, Silver Coins and ETFs
The definition sweeps broadly, and the wrapping matters more than the metal:
- Physical bullion and coins — bars, rounds, and bullion coins including American Eagles — are collectibles for tax purposes, even though they are IRA-eligible under §408(m). IRA eligibility and tax rate classification are different questions with different answers.
- Physically-backed ETFs are typically structured as grantor trusts holding metal; their long-term gains inherit the collectibles treatment. (A paper claim taxed like the metal it holds.)
- Mining stocks are ordinary equities — regular long-term rates.
- Futures contracts fall under §1256’s mark-to-market regime: 60% long-term, 40% short-term, regardless of holding period.
- Jewelry and antiques are collectibles by definition — and never IRA-eligible.
Gold Tax Reporting: Forms 1099-B, 8949 and Schedule D
The one-year line is measured from trade date to trade date. Reporting runs through the standard chain:
- Form 1099-B — dealers issue it for certain reportable sales (defined by contract size and payment thresholds, per the 1099-B instructions). Many personal sales to dealers fall below the reporting triggers — an unreported sale is still a taxable sale.
- Form 8949 — you list each sale: description, dates, proceeds, cost basis, and code. Basis is your purchase price plus documented premiums and, where allowed, storage costs; for inherited metal, basis is stepped up to date-of-death value under §1014.
- Schedule D — totals the 8949 and applies the collectibles computation (Worksheet for Capital Gains with Unrecaptured §1250 Gain / the Schedule D tax worksheet handles the 28% ceiling).
Documenting basis at purchase is the entire audit defense: a dealer receipt with weights and prices beats reconstructing years later.
Gold in an IRA: No Capital Gains Tax on Sales
A gold IRA replaces this entire rate schedule with the IRA distribution rules:
| Ownership form | Sale inside the wrapper | Tax at exit | Rate |
|---|---|---|---|
| Physical metal, taxable account | Taxable capital gain | — | 0/15/20% capped at 28% (long-term) |
| Gold ETF, taxable account | Taxable (grantor trust → collectibles) | — | Same ceiling |
| Traditional gold IRA | Not a taxable event | Distribution = ordinary income | Bracket rate, no ceiling |
| Roth gold IRA | Not a taxable event | Qualified distribution | 0% |
The traditional-IRA line carries its own trade-off: metal appreciation that would have been a 28%-capped capital gain becomes fully ordinary income at withdrawal — better in high brackets at the time of sale, worse in low brackets, and it forfeits the step-up at death that taxable metal receives. The distribution taxes guide covers the exit paperwork; the tax rules reference holds the full framework. Which wrapper wins depends on brackets at entry and exit — a comparison to make with your own numbers, not a rule.
State Sales Tax on Gold and Silver Bullion
Sales tax is a separate question from capital gains, and it lives at the state level: most states exempt investment-grade bullion from sales tax, but the definitions (purity thresholds, minimum transaction sizes) and the exemptions themselves change with legislative sessions. IRA purchases sit outside the question entirely — the custodian buys inside the account. For personal purchases, the state revenue department’s current bullion-exemption page is the source; a list here would go stale faster than the rest of this site combined.
Selling Gold: Tax When You Sell to a Dealer vs an IRA Buyback
Tax-wise these are the same event — a sale at fair market value, reported the same way, at the same rate. The differences are documentary: a dealer purchase produces a receipt and (sometimes) a 1099-B; an IRA buyback is the custodian selling account-owned metal inside the shelter, producing no tax event at all until distribution. Two personal-sale notes worth keeping: keep records of every sale, including small ones to coin shops — the aggregate is reportable income whether or not any individual sale triggered a 1099; and gifts of metal carry your basis to the recipient, while inheritances get the step-up — which is one reason the timing of metal passing between generations is a planning question.
The rates and rules here come from the statute and Publication 550, verified per our methodology. The Roth-versus-traditional-versus-taxable decision is bracket mathematics on your specific numbers — the Roth rules and RMD rules guides supply the IRA-side mechanics; a licensed professional supplies the verdict.