Gold and Silver Taxes in Minnesota (MN)

Minnesota (MN) provides a partial sales tax exemption for precious metals, but its rules are among the most restrictive in the country. Only qualifying bullion bars and rounds meeting a strict 99.9% purity threshold and marked with weight and content are exempt — precious metal coins of all types remain fully taxable.

Federal taxation rules also apply when precious metals are sold at a profit, and Minnesota taxes capital gains as part of state income tax under one of the highest top rates in the country.

Federal Capital Gains Tax on Gold & Silver

Every time you make a profit through the sale of precious metals in Minnesota and across the United States, the Federal Capital Gains Tax will be due. This is capped at 28% and the exact amount you pay depends on personal income. This tax applies to actual profits only so you pay nothing as long as you buy and hold.

Tax Free Precious Metals

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.

Minnesota does not distinguish between short-term and long-term capital gains. All capital gains are taxed as ordinary income under the state's progressive brackets. Minnesota has four tax brackets ranging from 5.35% to 9.85%. Additionally, the state imposes a 1% net investment income tax on all net investment earnings above $1 million.

Minnesota Sales Tax Rules for Gold, Silver, Platinum & Palladium Bullion

Minnesota's precious metals exemption is defined narrowly under Minnesota Statutes and is significantly more restrictive than most other states. To qualify, bullion must be in bar or round form, must consist of at least 99.9% by weight of gold, silver, platinum, or palladium, and must be clearly marked with weight and purity. Coins Online

Key rules investors must understand:

Exempt (if meeting all conditions):

• Gold, silver, platinum, and palladium bars and rounds at ≥ 99.9% purity, marked with weight and content

Taxable — regardless of metal content or purity:

• Coins of all types remain taxable in Minnesota, even when made of precious metals or issued as legal tender. Coins Online This includes American Gold Eagles, American Silver Eagles, Maple Leafs, and all other bullion coins
• Items lacking clear markings of weight and fineness
• Jewelry, works of art, scrap metal, and mixed metal items
• Rounds or bars below 99.9% purity (e.g., 90% junk silver)

The statewide base sales tax rate is 6.875%. Local jurisdictions may impose additional sales taxes, with combined rates averaging approximately 8.13% across the state.

Attempts to expand the exemption to coins have been introduced in multiple legislative sessions, including H.F. 881 in 2025, but as of March 2025 that bill was declared dead.

Is Minnesota a Tax-Friendly State for Precious Metals Investors?

Minnesota offers a limited tax advantage only for investors purchasing qualifying bullion bars and rounds at ≥ 99.9% purity. However, its strict ban on exemptions for precious metal coins — regardless of legal tender status or metal content — makes it significantly less favorable than the vast majority of U.S. states for coin-oriented investors.

Capital gains from precious metals sales are also subject to Minnesota's high progressive income tax of up to 9.85%, with no preferential rate for long-term gains, plus a 1% surtax on net investment income above $1 million.