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Texas (TX) provides a comprehensive sales tax exemption on precious metals under Tax Code § 151.336, covering gold, silver, and platinum bullion as well as numismatic coins. Texas also operates the only state-run bullion depository in the country. With no state income tax, Texas imposes no state-level taxes on the purchase or the sale of 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.
Texas does not impose 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.
Texas exempts qualifying precious metals from state and local sales and use tax under Tex. Tax Code § 151.336, effective in its current form since October 1, 2013 (HB 78 eliminated the prior $1,000 minimum threshold). The exemption covers the sale of gold, silver, or numismatic coins, or of platinum, gold, or silver bullion.
Two important distinctions set Texas apart from many states:
Numismatic coins are explicitly exempt: Numismatic coins that are not used as a medium of exchange and trade based on beauty, rarity, or condition rather than precious metal content are included in the exemption. This means collectible coins such as Morgan Dollars, Peace Dollars, and pre-1933 U.S. gold coins qualify alongside standard bullion products.
Palladium is not explicitly covered: The Texas statute names only gold, silver, and platinum — palladium is not listed by name. Investors purchasing palladium products should verify their tax treatment with a qualified tax professional.
Items that remain taxable include:
The statewide base sales tax rate in Texas is 6.25%, with local jurisdictions potentially adding up to 2% in municipal taxes on taxable goods. Qualifying precious metals are exempt from both state and local sales tax.
Texas operates the nation's only state-run precious metals depository, established under the Texas Bullion Depository Act. Investors who purchase precious metals from a Texas dealer and store them at the depository — or have them delivered within Texas — do not pay sales tax on those purchases. The depository offers an additional layer of security and tax efficiency for investors holding significant quantities of physical metals.
Texas is among the most favorable states for precious metals investors. The sales tax exemption under § 151.336 is broad — covering gold, silver, and platinum bullion at any quantity, with no minimum purchase threshold, and uniquely extending to numismatic and collectible coins. The complete absence of state income tax eliminates any state-level capital gains exposure.
Investors in palladium should note that it is not explicitly named in the Texas exemption statute and should seek clarification. For all other metals, Texas offers one of the most investor-friendly environments in the country, further enhanced by the Texas Bullion Depository.