How is gold taxed in the US?
In the US, the IRS treats physical gold as a collectible. If you sell gold you’ve held for more than a year, the profit is a long-term gain taxed at a maximum of 28%—technically the lesser of 28% or your ordinary income tax rate. If you’ve held it a year or less, the gain is short-term and taxed as ordinary income at your normal rate. You report the sale on Form 8949 and Schedule D, and you owe tax on a gain whether or not a dealer sends you a form. Below is how each part works, in plain English. This is general information, not tax advice—check your own situation with a tax professional.
Key takeaways
- The IRS treats physical gold as a collectible, so long-term gains (held over a year) are taxed at a maximum of 28%—the lesser of 28% or your ordinary tax rate.
- Gold held a year or less is a short-term gain, taxed as ordinary income at your marginal rate—not the 28% collectibles rate.
- You report a gold sale on Form 8949 and Schedule D, and you owe tax on the gain whether or not a dealer files a 1099-B.
- Sales tax on buying gold is set state by state—many states exempt investment-grade bullion, but not all, and the rules change.
How does the IRS treat gold?
The US tax code lists metals such as gold bullion and coins as “collectibles.” That classification is what sets gold apart from most stocks at tax time. Where a long-term gain on a typical stock is taxed at 0%, 15%, or 20%, a long-term gain on a collectible can be taxed at a higher maximum rate of 28%.
One point that trips people up: this applies to coins like American Eagles in a normal taxable account, even though those same coins are allowed inside a retirement account. Being IRA-eligible doesn’t make a coin exempt from collectibles tax treatment when you hold it yourself.
Long-term vs short-term: the two rates
How long you hold the gold decides which rate applies. Hold it more than one year and the profit is a long-term collectibles gain, taxed at a maximum of 28%. “Maximum” matters: the rate is the lesser of 28% or your ordinary income tax rate, so if your normal rate is below 28%, you pay that lower rate instead.
Hold it one year or less and the profit is a short-term gain, taxed as ordinary income at your marginal rate. There’s no special short-term rate for gold—it’s taxed like any other short-term gain, which could be higher or lower than 28% depending on your income.
What about gold ETFs and digital gold?
A gold ETF that holds physical metal (such as GLD or IAU) is generally treated like the metal itself, so a long-term gain is generally taxed as a collectibles gain at up to 28% rather than the lower stock rates. The exact treatment depends on how the fund is structured—check the fund’s own tax disclosure, and don’t assume an ETF automatically gets the lower long-term rate.
For newer products—gold-backed digital tokens and app-based gold—the tax treatment is less settled, and there isn’t clear public guidance covering every case. If you own gold this way, that’s exactly the kind of detail worth confirming with a tax professional for your specific holding rather than assuming.
Reporting your sale
You report a gold sale on Form 8949, which feeds into Schedule D. Long-term collectibles gains run through the “28% Rate Gain Worksheet” in the Schedule D instructions, which is where the special maximum rate is applied.
A common myth is that you only owe tax if a dealer sends you a 1099-B. Not so. Dealer 1099-B reporting on bullion is narrow—it only covers certain forms and quantities—so plenty of sales are never reported by the dealer. Your obligation to report the gain doesn’t depend on receiving a form. Separately, there’s a rule requiring dealers to report cash payments over $10,000 (Form 8300); that’s an anti-money-laundering rule about how you pay, not a report of your gain, and the two are often confused.
Cost basis: what you can subtract
Your taxable gain is the sale price minus your cost basis. As a general rule, basis is what you paid to acquire the gold, which typically includes a dealer’s premium or commission on the purchase. Keeping your purchase receipts matters: without them, it’s harder to prove your basis and you could overpay tax on the sale. Whether ongoing costs like storage fees affect your taxes is a grayer area—another point to confirm with a professional rather than assume.
Sales tax when you buy
The tax above is on selling at a profit. Buying gold can carry sales tax too—but that’s set state by state, not federally. Many states exempt investment-grade bullion, sometimes only above a minimum purchase amount, while some states tax it fully. These rules have been changing in recent years, so the safest move is to check your own state’s current rules before you buy rather than rely on a blanket “gold is tax-free” claim.
How different gold situations are taxed
| Situation | General US federal tax treatment |
|---|---|
| Physical gold held over 1 year | Long-term collectibles gain—up to 28% (the lesser of 28% or your ordinary rate) |
| Physical gold held 1 year or less | Short-term gain—ordinary income at your marginal rate |
| Gold ETF backed by metal (e.g. GLD, IAU) | Generally like the metal—long-term gains up to 28%; check the fund’s tax disclosure |
| Gold held in a Gold IRA | Tax-advantaged inside the IRA; must be held by an approved trustee, not you |
| Buying gold (sales tax) | Depends on your state; many exempt investment-grade bullion |
Note: this table is a general summary, not advice for your situation. Rates and rules depend on your income, your state, and current law, which changes.
Owning gold you can actually verify
Tax treatment is one part of owning gold; knowing your gold is actually there is another. However you buy, keep clear records, and if you own gold through an app, make sure it’s real and verifiable.
With Stacks, the gold is real and allocated—held in dedicated physical reserves and independently audited every month by RSM, so anyone can verify that the gold exists and that holdings match what’s issued. In plain words, it’s yours, not an IOU on our ledger. How your specific gold is taxed still depends on your own circumstances, so treat the tax questions as ones for a professional.
Frequently asked questions
What tax rate do you pay on gold?
The IRS treats physical gold as a collectible. If you hold it more than a year, the long-term gain is taxed at a maximum of 28%—specifically the lesser of 28% or your ordinary income tax rate, so if your normal rate is below 28% you pay that lower rate. If you hold it a year or less, the gain is short-term and taxed as ordinary income. This is general information, not tax advice.
Is gold taxed as a collectible?
Yes. Under the US tax code, metals such as gold bullion and coins are collectibles. That's why long-term gains on gold can be taxed at up to 28%, rather than the 0/15/20% long-term rates that apply to most stocks. The collectibles treatment applies in a regular taxable account even for coins like American Eagles.
Do you pay tax on gold if the dealer doesn't send a 1099-B?
Yes. You owe tax on a taxable gain whether or not a dealer files a 1099-B. Dealer 1099-B reporting on bullion is narrow—it only applies to certain forms and quantities—so many sales aren't reported by the dealer at all. That doesn't remove your responsibility to report the gain on your own return.
How do you report a gold sale on your taxes?
You report the sale on Form 8949, which flows into Schedule D. Long-term collectibles gains run through the “28% Rate Gain Worksheet” in the Schedule D instructions, which applies the special maximum rate. Keep records of what you paid and what you sold it for so you can calculate the gain.
Is there sales tax when you buy gold?
It depends on your state. There's no federal sales tax, and sales tax on buying gold is set state by state. Many states exempt investment-grade bullion, sometimes above a minimum purchase amount, but some tax it, and the rules change. Check your own state's current rules before you buy.
How is gold taxed inside a Gold IRA?
A Gold IRA can hold certain IRS-approved coins and bullion with the usual tax advantages of an IRA—but only if a bank or approved trustee keeps physical possession of the metal. If you take personal possession of gold held in an IRA, the IRS treats it as a distribution, which is taxable and may carry an early-withdrawal penalty. Talk to a tax professional before setting one up.
Related reading
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This page is general educational information about US taxes, current as of 2026, and is not tax or financial advice. Tax rules change and depend on your circumstances and your state—consult a qualified tax professional about your own situation.