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New Gold and Silver Tax Rules for 2026 – As precious metals like gold and silver continue to attract investors seeking hedges against inflation and economic uncertainty, understanding the tax implications is crucial. With 2026 approaching, several updates to gold and silver tax rules are set to take effect, primarily at the state level, while federal capital gains treatment remains largely consistent but influenced by broader tax bracket shifts. This guide breaks down the key changes, drawing from reliable sources like the IRS, Tax Foundation, and state revenue departments, to help you navigate these developments.
Federal Capital Gains Tax on Gold and Silver in 2026
At the federal level, physical gold and silver bullion, coins, and certain ETFs backed by precious metals are classified as “collectibles” under IRS rules. Long-term capital gains (assets held over one year) on these collectibles are taxed at a maximum rate of 28%, or your ordinary income tax rate if it’s lower. This structure has been in place since 1997 and isn’t changing specifically for 2026.
However, the expiration of the Tax Cuts and Jobs Act (TCJA) at the end of 2025 will cause individual income tax brackets to revert to pre-2018 levels starting in 2026. This means higher ordinary tax rates overall: for single filers, brackets will be 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. For collectible gains, if your marginal ordinary rate is below 28% (e.g., in the 15% or 25% bracket), you’ll pay that lower rate on gold or silver profits. If it’s 28% or higher, the cap remains at 28%.
Additionally, high-income earners may face the 3.8% Net Investment Income Tax (NIIT) on collectible gains if modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). Short-term gains (held under one year) are taxed as ordinary income, which could reach up to 39.6% in 2026 for top earners.
For paper investments like gold or silver mining stocks or non-physically backed ETFs, standard long-term capital gains rates apply: 0%, 15%, or 20%, depending on income. The 2026 thresholds for these will adjust: 0% for taxable income up to $49,450 (single), 15% up to $553,850, and 20% above that.
Major State-Level Gold and Silver Tax Changes in 2026
While federal rules see indirect shifts from bracket changes, states are implementing direct updates to sales taxes on precious metals, affecting buyers of gold and silver bullion and coins.
Washington State’s New Sales Tax on Precious Metals
Starting January 1, 2026, Washington will repeal its long-standing sales tax exemption on precious metal bullion and monetized bullion, including gold and silver bars, coins, and rounds. Retail purchases will now face the full state sales tax rate of about 6.5%, plus local taxes, potentially totaling 8-10% depending on the location. Wholesale transactions to resellers remain exempt, but consumers buying for investment will pay up.
This change also includes a Business & Occupation (B&O) tax on retailers’ gross income from these sales at 0.471%. Experts warn this could drive buyers to neighboring states like Oregon or Idaho, where exemptions persist. If you’re in Washington, consider making large purchases before the end of 2025 to avoid the new tax.
New Jersey’s Sales Tax Elimination
In positive news for investors, New Jersey’s Senate Bill 721 will eliminate sales tax on investment-grade precious metal bullion and coins starting in 2026, making it more attractive for buyers in the state. This aligns New Jersey with over 40 other states that offer full or partial exemptions.
Other states like Arkansas, Kentucky, and Wisconsin maintain exemptions, while California and New York impose sales tax on smaller purchases but exempt larger ones. Check your state’s rules, as 2026 brings broader tax reforms in 43 states overall.
IRA and Retirement Account Considerations for Gold and Silver
Self-directed IRAs can hold physical gold and silver, offering tax-deferred growth. For 2026, traditional and Roth IRA contribution limits rise to $7,500 ($8,600 if age 50+). Gains within the IRA aren’t taxed until withdrawal, bypassing the 28% collectibles rate. However, early withdrawals face penalties, and required minimum distributions (RMDs) apply to traditional IRAs.
How to Prepare for 2026 Gold and Silver Tax Changes?
To optimize your strategy:
- Review Holdings: Calculate potential capital gains using 2026 brackets and consult a tax advisor.
- Time Purchases: Washington residents should buy before January 1, 2026, to avoid sales tax.
- Diversify: Consider non-collectible assets like mining stocks for lower tax rates.
- Stay Informed: Monitor federal legislation, as Congress could extend TCJA provisions.
By understanding these gold tax 2026 and silver tax 2026 updates, investors can make informed decisions to minimize liabilities and maximize returns in an evolving tax landscape.