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There is a sales tax of 6.25% in the state of Massachusetts, and local governments levy taxes on top of this. There are exemptions, but they don’t apply to all investments. For instance, South African or Namibian coins, such as gold Krugerrands, are taxed by both state and county. Platinum coins and bars, palladium coins and bars, and paper currency are also not exempt and sales tax is collected on their purchase.
In the state of Massachusetts, as is the case across the entire United States, the Federal Capital Gains Tax is in place. This means that whenever you sell your investments for a profit, you owe taxes. How much depends on your personal income level and location. Regardless of where you are and how much you earn, the rate will not exceed 28%.
The tax code of Massachusetts states that all purchases of more than $1,000 are exempt from sales tax. As mentioned, this excludes a number of coins, bars, precious metal types and even paper currency, but it still covers a wide range of investment-grade silver and gold. For instance, $1,000+ of gold bars, silver bars, coins that are legal tender in the US, Europe or Asia, as well as rounds, medallions and tokens are exempt.
If you want to purchase coins that are not exempt, or purchase less than $1,000 worth of precious metals, you can simply buy them online from a reputable out-of-state dealer. Bear in mind that shipping and handling costs will negate part of your tax savings. Your best bet might be to purchase from an overseas storage company. They will keep your precious metals in their vault for a small annual storage fee. There are also a number of trading platforms that let you buy and sell as much virtual gold and silver as you want without any additional fees.
Source: https://budget.digital.mass.gov/bb/h1/fy19h1/tax_19/items/htax3108.htm
Of the 50 US states, Massachusetts is the 3rd most densely populated, with much of this population crammed into Boston, which is both the state’s largest city and its capital. In total, this city is home to more than 7.5 million people. To put that into context, there are 2.2 million people in Paris and 3.5 million in Berlin. In fact, the population of Boston is a third of the total population of Australia, a quarter of the total population of Canada and nearly twice the total population of New Zealand.
Boston is the powerhouse of Massachusetts, and one of the richest cities in the entire USA. In fact, the GDP of this city eclipses that of many states and also of many countries, and in terms of city GDPs, Boston is the 12th largest in the world. This means that, while it is behind cities such as Seoul, Los Angeles, Tokyo and even San Francisco, it is ahead of Sydney, Hong Kong, Singapore and many other major financial centers.
Nearly 50% of Boston’s economy consists of health care, business and trade, but government, construction, hospitality, manufacturing and finance also play major roles. Greater Boston is a big college town with a number of great universities with the student population of Boston pumping nearly $5 billion into the economy every year.
We advise all customers from the United States to check their local tax laws, and we can not be held responsible for local tax charges that result from incoming shipments of precious metals.
Note: GoldBroker cannot provide tax, legal, or other advice, so if you are not sure about the taxation to your personal circumstances, we recommend that you seek independent advice from a qualified professional.
All of these texts were accurate at the time of writing, but tax laws are constantly changing and it’s not easy to keep track of those changes. Because of this, we can not be held responsible for any false or out-of-date information.