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Mississippi has significantly improved its tax treatment of precious metals since 2023, when Senate Bill 2862 took effect. Signed by Governor Tate Reeves with unanimous bipartisan support — passing the Senate 52-0 and the House 115-0 — the law comprehensively exempts coins, currency, and bullion from state sales tax, with no purity requirement, no minimum threshold, and no distinction between bullion bars and coins.
Federal taxation rules still apply when precious metals are sold at a profit, and Mississippi taxes capital gains as part of state income tax, though the state is on a legislative path toward phasing out income tax entirely.
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.
Mississippi exempts the first $10,000 of taxable income and applies a flat 4.4% rate to all taxable income above that threshold. Mississippi does not distinguish between short-term and long-term capital gains — all gains are taxed as ordinary income at the same flat rate. There are no local income taxes in Mississippi.
Notably, legislation enacted in March 2025 (the Build-Up Mississippi Act) is designed to cut the individual income tax rate to 3% by 2030, with the state's long-term goal of phasing out the income tax entirely.
Mississippi provides a comprehensive sales tax exemption for coins, currency, and bullion under Miss. Code Ann. § 27-65-111, effective July 1, 2023 (SB 2862). The exemption is broad and investor-friendly, with no minimum purchase threshold and no purity requirement.
Under the law, bullion is defined as "a bar, ingot, or coin" manufactured in whole or in part of gold, silver, platinum, or palladium, that was or is used as a medium of exchange, security, or commodity by any state, the United States Government, or a foreign nation, and sold based on the intrinsic value of the metal rather than its form or representative value.
The exemption covers:
Items that remain taxable include jewelry incorporating precious metals or coins, items whose value derives primarily from craftsmanship or design rather than metal content, and scrap metal.
The statewide sales tax rate is 7% on taxable goods. Mississippi does not impose local sales taxes, resulting in a uniform rate across the state.
Mississippi is a tax-friendly state for precious metals investors. The 2023 sales tax exemption is one of the broadest in the country — covering all four major precious metals in bar and coin form, with no minimum threshold and no purity requirement. Combined with no local sales taxes and a low, declining flat income tax rate (4.4% in 2025, heading toward elimination), Mississippi offers a solid overall environment for precious metals investment.
Capital gains from precious metals sales are taxed at Mississippi's flat 4.4% state income tax rate, with no distinction between short-term and long-term gains.
Mississippi, 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.