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Wisconsin (WI) enacted a comprehensive sales tax exemption for precious metal bullion under Wisconsin Act 149 (Assembly Bill 29), signed by Governor Tony Evers. Prior to this law, Wisconsin was one of the few states to fully tax precious metals purchases. The exemption includes a notably broad definition that covers copper in addition to the traditional precious metals, with a minimum 35% metal content threshold.
Capital gains from precious metals sales are subject to Wisconsin's progressive income tax, though long-term gains benefit from a partial 30% exclusion.
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.
Wisconsin taxes capital gains as ordinary income at the same progressive rates applying to other income. Wisconsin has four tax brackets for single filers: 3.50% on the first $14,679; 4.40% from $14,680 to $50,479; 5.30% from $50,480 to $323,289; and 7.65% on income above $323,290.
Importantly, Wisconsin allows a 30% exclusion on most long-term capital gains, meaning only 70% of long-term gains are included in taxable income. This significantly lowers the effective state tax rate for investors who have held precious metals for more than one year.
Wisconsin exempts qualifying precious metals from state sales and use tax under Wis. Stat. § 77.54(71), enacted as Wisconsin Act 149 and effective March 23, 2024.
The exemption covers coins, bars, rounds, or sheets that contain at least 35% gold, silver, copper, platinum, or palladium, and that are either marked with weight, purity, and content, or minted by a government authority on the basis of weight, purity, and content.
Wisconsin's definition is notable for two reasons: it includes copper as a qualifying metal (uncommon among states), and the 35% threshold is lower than the purity requirements in many other states. Government-minted coins qualify automatically regardless of whether they bear explicit weight/purity markings.
Items that remain taxable include:
Exemption certificate required: To claim the exemption, purchasers must provide a fully completed Wisconsin Sales and Use Tax Exemption Certificate (Form S-211 or S-211E) to the seller.
The statewide base sales tax rate is 5%, with county taxes typically adding up to 0.5% in most areas. The City of Milwaukee imposes an additional 2% city sales tax on taxable goods, though qualifying precious metals are exempt from all these rates.
Wisconsin became significantly more favorable for precious metals investors with the passage of Act 149. The comprehensive exemption covers bullion in all standard forms at a relatively low 35% purity threshold, including copper-content products and government-minted coins. This reversed Wisconsin's prior status as one of the few states fully taxing precious metals.
On the capital gains side, Wisconsin's top rate of 7.65% is moderately high, but the 30% long-term capital gains exclusion effectively reduces the maximum state rate on long-held precious metals to approximately 5.36% (7.65% × 70%).