Bullion sales tax · Alabama
Alabama sales tax on gold and silver
Is gold taxed in Alabama?
No.
Alabama charges no sales tax on refined gold, silver, platinum or palladium bars, rounds and coins that are at least 80% precious metal and priced on metal value, through May 31, 2028; jewelry and coins sold for collector value are taxed.
- Investment gold & silver
- Tax-free
- Order threshold
- None
- Metals covered
- Gold, silver, platinum and palladium
- Jewelry
- Taxed · about 9.46%
- Exemption runs until
- May 31, 2028
What's taxed in Alabama
| What you're buying | Sales tax | What it means |
|---|---|---|
| Gold and silver bars and rounds | No sales tax | No sales tax in Alabama, whatever the order size. |
| Gold and silver bullion coins (Eagles, Maple Leafs, Krugerrands) | No sales tax | No sales tax in Alabama, whatever the order size. |
| Platinum and palladium bullion (bars, rounds and coins) | No sales tax | No sales tax in Alabama, whatever the order size. |
| Rare and graded (numismatic) coins | Sales tax applies | Taxed like other goods in Alabama. |
| Jewelry | Sales tax applies | Taxed like other goods in Alabama. |
| Medals, collectibles and accessories | Sales tax applies | Taxed like other goods in Alabama. |
The rule, in plain English
Alabama charges no sales tax on refined gold, silver, platinum or palladium bars, rounds and coins that are at least 80% precious metal and priced on metal value, through May 31, 2028; jewelry and coins sold for collector value are taxed.
What counts: Ala. Code § 40-23-4(a)(52): 'bullion' is gold, silver, platinum, palladium, or a combination, that has gone through a refining process and whose value depends on its mass and purity, not its form, numismatic value or other value. Requirements: (1) must be refined; (2) must contain at least 80 percent gold, silver, platinum or palladium or a combination; (3) sales price must fluctuate with the market price of the underlying metal, not rarity, condition, age or other external factor. Other substances allowed only if minimal in value and adding no value. Also exempts 'money, as defined in Section 40-1-1(7)' (that definition was not retrieved).
Still taxed: Jewelry and works of art (expressly excluded); coins or items sold for numismatic/collector value; items under 80% precious metal; unrefined metal; accessories (capsules, tubes, boxes); copper and other non-listed metals. Dental/professional gold use stays taxable under Rule 810-6-2-.27(4).
This rule took effect on June 1, 2018 and runs until May 31, 2028 unless the legislature extends it.
What you would pay: three Alabama examples
| Purchase delivered to Alabama | Sales tax |
|---|---|
| Silver coins, $500 | $0 exempt investment bullion |
| Gold coins, $5,000 | $0 exempt investment bullion |
| A gold necklace, $1,000 | about $95 jewelry is taxed |
Using Alabama's 4% state rate plus the average local rate, 9.46% combined (Tax Foundation, January 2026). Your city or county rate may be higher or lower.
Recent changes in Alabama
ADOR Rule 810-6-2-.27 amended to state the exemption runs until May 31, 2028. Source
Act 2022-373 (SB 13) extended the exemption from 5 to 10 years (through May 31, 2028), lowered the minimum purity from 90% to 80%, and dropped the buyer reporting requirement. Date is the Act-number assignment per LegiScan snippet; signing reported mid-April 2022. Source
Alabama and its neighbors
- Florida Partly tax-free
- Georgia Tax-free
- Mississippi Tax-free
- Tennessee Tax-free
Different rules next door: Florida (partly tax-free). Same as Alabama: Georgia, Mississippi and Tennessee. Tax follows the delivery address, not where you live.
Buying from Bullion Trading LLC with delivery to Alabama
No sales tax is added at our checkout for bullion delivered to Alabama.
Orders ship insured and discreetly packed: USPS under $1,000, FedEx with adult signature from $1,000, usually within 2–3 business days after payment clears. Bank transfer and check are our best price; card and PayPal add 5% (up to $7,500).
Tax-free in Alabama: popular coins and bars
The large price is the check/wire price; the card/PayPal price is listed under it. Prices follow the live spot price.
Selling gold in Alabama
Selling gold to a dealer is not a retail purchase, so no sales tax applies. A profit is a capital gain: the IRS taxes gains on gold and silver bullion as collectibles, at up to 28% when held more than a year. Alabama excludes gains on gold, silver, platinum and palladium coins, bars and rounds from state income tax (from 2025).
Dealers have to report some larger sales to the IRS on Form 1099-B; keep your purchase receipts to show your cost.
We buy bullion at our counter at 20 West 47th Street in New York: walk in with a photo ID and we pay by same-day check. How selling to us works
Local taxes
Not verified this session whether every self-administered Alabama city/county tax mirrors the state exemption. The 2018 ADOR notice and the rule address state sales and use tax only.
Common questions about Alabama
Is gold taxed in Alabama?
No. Alabama charges no sales tax on refined gold, silver, platinum or palladium bars, rounds and coins that are at least 80% precious metal and priced on metal value, through May 31, 2028; jewelry and coins sold for collector value are taxed.
Is silver taxed in Alabama?
No. Investment silver bullion and coins are exempt from sales tax in Alabama.
Is gold jewelry taxed in Alabama?
Yes. Jewelry is taxed like other goods in Alabama (about 9.46% on average with local tax), even when it is made of gold, silver or platinum.
Do I pay tax when I sell gold in Alabama?
Selling gold to a dealer is not a retail purchase, so no sales tax applies. A profit is a capital gain: the IRS taxes gains on gold and silver bullion as collectibles, at up to 28% when held more than a year. Alabama excludes gains on gold, silver, platinum and palladium coins, bars and rounds from state income tax (from 2025).
Selling to a dealer
No sales tax
A gain on the sale
Taxed by the IRS as a collectible, up to 28% when held more than a year
Sources
- Ala. Code § 40-23-4(a)(52) — FindLaw copy of § 40-23-4, current as of 2024-12-30; text of (52)(a)-(c) read (checked October 19, 2026)
- Ala. Code § 40-23-4(a)(52) — Sales tax exemption: bullion or money, June 1, 2018 through 10 years thereafter (official Code of Alabama on ALISON) (checked October 19, 2026)
- Ala. Code § 40-23-62 — Use tax counterpart exemption (cited by ADOR; text not read) (checked October 19, 2026)
- Ala. Admin. Code r. 810-6-2-.27(3) — Gold, Coin, and Bullion: exempt June 1, 2018 until May 31, 2028 (amended eff. 2022-11-14) (checked October 19, 2026)
- Act 2022-373 (SB 13, 2022 Reg. Sess.) — Extended exemption to 10 years, lowered purity to 80%, repealed reporting requirement (enrolled text not retrieved; LegiScan blocked) (checked October 19, 2026)
- ADOR Notice, Act 2018-164 (June 15, 2018) — Original guidance (now outdated: 90% purity, 5-year term) (checked October 19, 2026)
- State and Local Sales Tax Rates, 2026 (table: State & Local Sales Tax Rates as of January 1, 2026) (Tax Foundation)
- 2026 Sales Tax Rates, Midyear Update (rates as of July 1, 2026) (Tax Foundation)
- SB 297 (2024 RS) enrolled: Sound Money Tax Neutrality Act (Alabama Legislature)
- IRS Topic 409: capital gains and losses (collectibles rate)
How we research and check this guide: our method.