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Indiana (IN) provides a sales tax exemption on many forms of investment-grade precious metals, particularly bullion products that qualify as IRA-eligible investments or U.S. legal tender. However, Indiana's exemption rules are among the more complex in the United States, with purity requirements varying by metal type and product classification.
Federal taxation rules also apply when precious metals are sold at a profit, and Indiana 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.
Indiana taxes capital gains as ordinary income at the state level, applying a flat income tax rate of 3.0% for the 2025 tax year — reduced from 3.05% in 2024, with further reductions scheduled to 2.95% in 2026 and 2.9% in 2027. Indiana does not distinguish between short-term and long-term capital gains at the state level. Additionally, all 92 Indiana counties impose a local income tax ranging from approximately 0.5% to 3%, which also applies to capital gains. Investors should factor in both state and county rates when calculating their total state-level tax burden on precious metals sales.
Indiana provides a sales tax exemption for precious metals under specific criteria established by the Indiana Department of Revenue (Sales Tax Information Bulletin #50). The exemption applies to two main categories:
1. IRA-eligible bullion — bullion that would qualify as a permitted investment under an IRA or IDA under 26 U.S.C. 408(m). This includes products meeting the following minimum purity standards:
2. Legal tender — all U.S. coins and currency regardless of age or purity, as well as coins approved as legal tender by any U.S. state government.
Products that do not meet these criteria remain subject to Indiana's statewide sales tax rate of 7%. Unlike many states, Indiana does not apply additional local sales taxes, resulting in a uniform 7% rate statewide for taxable purchases.
The following products remain taxable in Indiana:
Indiana offers a sales tax exemption on most standard investment-grade bullion products, particularly IRA-eligible bars and coins that meet the applicable purity thresholds. Most commonly traded gold, silver, platinum, and palladium bullion qualifies for exemption.
However, Indiana's purity requirements are stricter than many other states' 0.900 thresholds — investors should verify that specific products meet the relevant fineness standards. Capital gains realized when selling precious metals are subject to both federal taxation and Indiana's flat state income tax of 3.0%, plus applicable county income taxes ranging from 0.5% to 3%.
Indiana, United States residents are solely responsible for verifying applicable tax laws before purchasing or selling precious metals. GoldBroker is not liable for any tax obligations arising from transactions.