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Connecticut (CT) has significantly improved its tax environment for precious metals investors. Following the signing of House Bill 7287 by Governor Ned Lamont on June 30, 2025, Connecticut eliminated all sales tax on qualifying gold, silver, platinum, and palladium bullion, effective July 1, 2025. Prior to this change, only purchases exceeding $1,000 were exempt.
Federal taxation rules still apply when precious metals are sold at a profit, and Connecticut taxes capital gains as part of state income tax.
Precious metals such as gold and silver are classified as collectibles under U.S. federal tax law. Profits realized when selling investment metals may therefore be subject to federal capital gains tax, with a maximum rate of 28%, depending on income level and holding period.
Capital gains tax generally applies when metals are sold for fiat currency or exchanged for goods and services. No tax is due simply for purchasing or holding bullion.
Connecticut taxes capital gains as ordinary income at the state level. Connecticut's income tax rates range from 2% to 6.99% depending on total taxable income and filing status. Unlike the federal system, Connecticut does not provide a special lower tax rate for long-term capital gains. This means all gains from selling precious metals, regardless of how long they were held, are taxed at the same progressive rates as ordinary income.
Effective July 1, 2025, Connecticut fully exempts qualifying precious metals bullion from state sales tax, following the enactment of House Bill 7287. This represents a significant expansion from the previous partial exemption that only applied to purchases exceeding $1,000.
The exemption applies to gold, silver, platinum, and palladium bullion, provided the bullion meets a minimum purity level of 90%. Connecticut does not apply additional local sales taxes, resulting in a uniform rate of 6.35% on any remaining taxable items across the state.
To qualify for the Connecticut sales tax exemption, precious metal products must:
Rare and antique coins continue to be exempt from Connecticut sales tax regardless of purchase price. Jewelry, decorative items, and processed precious metal products remain subject to the standard 6.35% sales tax rate.
Since July 1, 2025, Connecticut has become considerably more attractive for precious metals investors. The full elimination of sales tax on qualifying bullion — regardless of purchase amount — removes a significant barrier that previously penalized smaller investors buying below the $1,000 threshold.
However, capital gains realized when selling precious metals remain subject to both federal tax and Connecticut's progressive state income tax, with rates reaching up to 6.99%. Connecticut does not offer preferential rates for long-term capital gains, meaning all gains are taxed as ordinary income. Investors should ensure that purchased products meet the 90% purity requirement to qualify for the sales tax exemption.