We put safety at the core of our business
South Dakota (SD) provides a comprehensive sales tax exemption on precious metals bullion, coins, and currency under SDCL § 10-45-110. Gold, silver, platinum, and palladium bars, coins, and commemorative medallions are fully exempt, with no minimum purchase threshold and no purity requirement. South Dakota also has no state income tax, meaning capital gains from precious metals sales are not taxed at the state level.
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.
South Dakota does not impose a state income tax on individuals. As a result, there is no state-level capital gains tax on precious metals. Only federal capital gains tax applies when metals are sold at a profit.
South Dakota exempts qualifying precious metals from state sales tax under SDCL § 10-45-110. The exemption is notably broad compared to many other states, covering two distinct categories:
Bullion: Any bar, ingot, or commemorative medallion of gold, silver, platinum, palladium, or a combination of these metals, where the value of the metal depends on its content and not the form. Unlike many states, South Dakota expressly includes commemorative medallions in its bullion definition, provided they are valued for metal content.
Coins and currency: Any legal tender made of gold, silver, or other metal or paper which is or has been used as legal tender. The exemption also applies to collectible coins, provided they are not converted into jewelry or other decorative items.
Items that remain taxable include:
The current statewide sales tax rate is 4.2% (temporarily reduced from 4.5% under HB 1137, effective July 1, 2023 through June 30, 2027), with local jurisdictions potentially adding up to 2% in municipal sales tax. Qualifying precious metals purchases are exempt from both state and local sales tax.
South Dakota is among the most favorable states in the country for precious metals investors. The sales tax exemption under SDCL § 10-45-110 is comprehensive — covering bars, coins, and even commemorative medallions across all four major precious metals, with no minimum purchase amount and no purity threshold. The complete absence of state income tax eliminates state-level capital gains exposure entirely.
The only applicable taxes on precious metals in South Dakota are federal capital gains tax when metals are sold at a profit.