Guide · Taxes
Taxes when you sell gold or silver
How US federal tax works on gains from selling physical gold and silver, in plain words. Not tax advice.
Last updated October 2, 2026
This is a plain-language summary of US federal rules, not tax advice. Rules change and your situation may differ. Check with a tax professional or the IRS (Topic 409, capital gains and losses).
You only pay tax on a gain
Tax is due on the profit: what you sold for, minus what you paid (your “basis”), minus selling costs. If you sell for less than you paid, there is no gain.
Gold and silver are “collectibles”
The IRS treats physical gold and silver (coins, bars and jewelry) as collectibles.
- Held one year or less: a gain is taxed as ordinary income, at your normal rate.
- Held more than one year: a long-term gain is taxed at your normal rate, but no higher than 28%. That cap is higher than the usual long-term rates for stocks.
Many states also tax the gain as income.
Inherited and gifted metal
- Inherited: your basis is usually the value on the date of death. If you sell soon after, the gain is often small. Our gold price history can look up the market price on a single day since 2000.
- Gifted: you usually take over the giver’s original basis. Ask them what they paid, and keep the answer in writing.
Keep records
Keep receipts for what you bought and the dealer’s written receipt when you sell. If you have no purchase records, a tax professional can help you make a reasonable, documented estimate.
Dealer reporting
Dealers must file Form 1099-B with the IRS for some large sales of certain bullion products. Whether or not the dealer files a form, you are responsible for reporting a gain.
Sales tax is different
Sales tax applies when you buy, not when you sell, and it varies by state. Many states exempt bullion. Our state map shows each state’s rule.
Selling inside an IRA
Metals held in a self-directed IRA follow IRA rules instead. See our precious metals IRA guide.