We put safety at the core of our business
Washington State (WA) fundamentally changed its treatment of precious metals. The long-standing sales tax exemption on precious metal bullion and monetized bullion — in place since 1985 — was repealed under Engrossed Substitute Senate Bill (ESSB) 5794, Chapter 423, Laws of 2025. All purchases of precious metals are now fully taxable, making Washington one of only a handful of states that imposes sales tax on investment-grade bullion.
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.
Washington does not impose a general personal income tax. However, the state does levy a capital gains excise tax on certain long-term capital asset sales. The capital gains tax remains at 7% on gains up to $1 million, and increases to 9.9% on gains exceeding $1 million. The annual exemption threshold is approximately $278,000 (indexed for inflation) — gains below this threshold are not taxed. Real estate and retirement accounts are excluded from this tax. Whether precious metals gains are subject to this capital gains excise tax depends on classification and amount; investors should consult a qualified tax professional for their specific situation.
Starting January 1, 2026, sales of precious metal bullion and monetized bullion are no longer excluded from the definition of a wholesale or retail sale in Washington. These items are now taxable as tangible personal property. This repeal was enacted under ESSB 5794.
All precious metals — gold, silver, platinum, palladium, rhodium, and other refined metals — are now subject to full state and local retail sales tax in Washington. The same applies to monetized bullion (government-minted legal tender coins). Combined state and local sales tax rates typically range from approximately 7.5% to more than 10%, depending on the buyer's location.
In addition to sales tax, gross income from retail sales of precious metals to consumers is subject to the Business & Occupation (B&O) tax under the Retailing classification at a rate of 0.471% — a cost that dealers typically pass on to buyers through pricing.
Legislative note: Industry groups have introduced legislation (HB 2093 and SB 5894 in the 2026 session) to repeal or modify ESSB 5794, but as of the current date these bills have not been enacted. Investors should verify current status before making purchases.
Washington is no longer a tax-efficient state for precious metals investors. The repeal of the decades-long sales tax exemption means purchases of gold, silver, platinum, and palladium now incur combined sales tax rates of 7.5%–10%+ depending on location. This, combined with B&O tax obligations passed on by dealers, represents a significant increase in acquisition costs compared to neighboring states such as Oregon and Idaho, which maintain exemptions.
Investors in Washington may wish to consider purchasing from out-of-state dealers in exemption states, provided their own nexus and use tax obligations are properly assessed.