There is a statewide tax of 7% in Rhode Island, but fortunately this doesn’t apply to all precious metal purchases. However, it does apply to paper currency purchases and also to medals, tokens and rounds, anything that does not necessarily fall under the spectrum of common precious metal bullion.
The Federal Capital Gains Tax applies in Rhode Island and across the entire United States. This takes effect when you sell your gold or silver investment and make a profit on it, the amount you owe depending on your personal income. The maximum Federal rate is 28%.
Most precious metals are tax-free in the state of Rhode Island, but this does not apply across the board. All forms of silver and gold bullion, including legal tender, non-legal tender, bars and more, are tax free. These are considered investment-grade metals and/or collectibles, and are therefore not taxed. However, anything that falls outside of this definition will very likely be taxed.
If you visit a bullion dealer in the state, it should be made fairly clear what is taxed and what is not. To simplify the process, you can purchase online.
The state of Rhode Island is the smallest in the United States by area, and the 8th smallest by population. When you put these two statistics together, Rhode Island becomes the 2nd most densely populated state in the country, behind only New Jersey. The Ocean State does have a significant claim to fame, as it was the first of the Thirteen Colonies that declared independence from the British.
Named “The Ocean State” because of its many bays and inlets, the economy of Rhode Island is heavily reliant on fishing and other maritime industries. Its GDP is one of the smallest in the country. Its biggest employer is the State of Rhode Island which in the past collected higher taxes than many other US states (although those rates have now been reduced in line with neighboring states). The healthcare industry is also significant in Rhode Island, with MetLife, Care New England and Lifespan Hospital Group all headquartered here.
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 Because of this, we can not be held responsible for any false or out-of-date information.