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Virginia (VA) provides a sales tax exemption on qualifying precious metals bullion and legal tender coins under Va. Code § 58.1-609.1. The exemption applies to gold, silver, and platinum — note that palladium is not explicitly included in the Virginia statute. The exemption was extended via budget bill HB 1600.
Federal taxation rules apply when precious metals are sold at a profit, and Virginia taxes capital gains as part of state income tax.
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.
Virginia taxes capital gains as ordinary income — the state makes no distinction between short-term and long-term gains. For 2025, Virginia's four progressive income tax rates are 2%, 3%, 5%, and 5.75%, with the top 5.75% rate applying to taxable income above $17,000. Most investors with significant precious metals gains will fall into the top 5.75% bracket.
Virginia exempts qualifying precious metals from state and local sales and use tax under Va. Code § 58.1-609.1. No state or local sales tax is collected on qualifying bullion or legal tender coins purchased in Virginia, with the exemption confirmed through July 1, 2026.
The exemption covers:
Palladium: Virginia's exemption statute names gold, silver, and platinum specifically. Palladium is not explicitly included and may be subject to sales tax. Investors purchasing palladium products should verify their tax treatment with a qualified tax professional.
Excluded items include: Jewelry and works of art, accessories such as holders and tubes, and processed items.
The statewide base sales tax rate is 5.3% (4.3% state + 1% mandatory local). Certain regions such as Northern Virginia and Hampton Roads have higher combined rates due to additional local taxes. Qualifying precious metals are fully exempt from these rates.
Virginia is a reasonably tax-friendly state for precious metals investors while the sales tax exemption remains in force. The exemption covers gold, silver, and platinum bullion and legal tender coins with no minimum purchase threshold — an improvement over the earlier $1,000 floor that was removed in 2022. However, the exemption remains subject to periodic legislative renewal and has a current expiration of July 1, 2026, creating ongoing uncertainty.
Capital gains from precious metals sales are subject to Virginia's progressive income tax reaching 5.75%, with no preferential treatment for long-term gains.