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West Virginia (WV) provides a comprehensive sales tax exemption on investment-grade precious metals under W. Va. Code § 11-15-9r, enacted through Senate Bill 502 and effective July 1, 2019. The exemption covers investment metal bullion and investment coins in gold, silver, platinum, and palladium. Capital gains from precious metals sales are subject to West Virginia's progressive income tax at rates that have been reduced significantly in recent years.
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.
West Virginia taxes capital gains as ordinary income — the state makes no distinction between short-term and long-term gains. West Virginia has five progressive tax brackets: 2.22% on the first $10,000 of taxable income, 2.96% ($10,001–$25,000), 3.33% ($25,001–$40,000), 4.44% ($40,001–$60,000), and 4.82% on income above $60,000. These rates took effect January 1, 2025 under SB 2033, replacing the previous higher brackets (which topped at 5.12% in 2024). Further rate reductions may occur in future years under trigger provisions.
West Virginia exempts qualifying precious metals from state sales tax under W. Va. Code § 11-15-9r. The statute covers two categories:
Investment metal bullion: Any elementary precious metal which has been put through a process of smelting or refining, including gold, silver, platinum, and palladium, and which is in such a state or condition that its value depends upon its content and not its form. Bullion that has been assembled, fabricated, or processed for industrial, professional, aesthetic, or artistic uses does not qualify.
Investment coins: Numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal — of the United States or any foreign nation — with a fair market value greater than any nominal value of such coins. Investment coins explicitly excludes jewelry or works of art made of coins.
Items that remain taxable include:
The statewide base sales tax rate is 6%, with limited local taxes potentially adding up to 1% in certain municipalities, for a maximum combined rate of approximately 7%.
West Virginia is a tax-friendly state for precious metals investors. The sales tax exemption under § 11-15-9r is comprehensive, covering all four major precious metals in both bullion and investment coin form with no minimum purchase threshold and no purity requirement. The exemption covers all qualifying products whether purchased in-state or shipped to a West Virginia address.
Capital gains from precious metals sales are subject to West Virginia's progressive income tax, with a maximum rate of 4.82% in 2025 — significantly lower than the prior 5.12% top rate, and with further reductions potentially triggered in future years.