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Maryland (MD) is now one of the less tax-efficient states for precious metals investors following a significant legislative reversal: House Bill 352 — the Budget Reconciliation and Financing Act — repealed Maryland's longstanding sales tax exemption on precious metals purchases, reimposing the standard 6% sales tax on virtually all bullion transactions.
The only remaining exception applies to purchases made at events held at the Baltimore Convention Center. All other purchases of gold, silver, platinum, and palladium are now subject to the 6% statewide sales tax regardless of transaction size.
Federal taxation rules also apply when precious metals are sold at a profit, and Maryland 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.
Maryland taxes capital gains as ordinary income under its progressive state income tax system. For Tax Year 2025, Maryland has 10 state income tax brackets ranging from 2% to 6.50%, with the two highest brackets (6.25% and 6.50%) added in 2025. In addition, a new 2% capital gains surtax applies to taxpayers with federal AGI exceeding $350,000. Every Maryland resident also pays a local income tax to their county or Baltimore City, with rates ranging from 2.25% to 3.30%. Combined state and local income taxes can therefore reach or exceed 9% for higher earners.
Effective July 1, 2025, following the signing of House Bill 352, Maryland applies its standard 6% sales tax to all precious metals purchases. The previous exemption for transactions over $1,000 has been repealed.
The sole remaining exemption covers qualifying purchases made at events held at the Baltimore Convention Center. All other transactions — regardless of amount, purity, or product type — are subject to the 6% statewide rate. Maryland does not apply additional local sales taxes, so this rate is uniform across the state.
Investors should note that advocacy groups including the National Coin & Bullion Association have announced a 2026 campaign to restore the exemption, and legislation has been pre-filed to that effect. Investors should monitor legislative developments for potential changes.
Maryland is currently one of the least favorable states for precious metals investors following the 2025 repeal of its bullion sales tax exemption. The reimposition of 6% sales tax on all bullion transactions — combined with a progressive state income tax reaching up to 6.50%, a new 2% capital gains surtax for high earners, and local income taxes of up to 3.30% — makes Maryland a particularly costly jurisdiction for precious metals investing.
Investors purchasing online should note that sales tax is based on the delivery address. Purchasing from a dealer and shipping to a neighboring tax-exempt state — such as Delaware or Pennsylvania — would avoid Maryland's 6% sales tax, though investors should consult a tax advisor regarding use tax obligations.
Maryland, 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.