Collectibles Tax Rate: What It Is and What It Covers
Learn the collectibles tax rate for 2026, what assets fall under it, and how it applies to precious metals. Understand the rules before you sell.
The collectibles tax rate is a maximum capital gains rate applied to certain tangible assets, including precious metals. For the 2026 tax year, the maximum is 28%, a figure set by statute and subject to change by Congress. This page explains what falls under this classification, how it interacts with your overall tax situation, and common misconceptions.
What Is the Collectibles Rate?
The collectibles rate is not a flat tax on all gains from collectible assets. Instead, it is a maximum capital gains rate. For most assets, long-term capital gains are taxed at 0%, 15%, or 20%, depending on your taxable income. For collectibles, the maximum long-term capital gains rate is 28%. If your ordinary income tax bracket is lower than 28%, you may pay a lower rate on your collectibles gains, but never more than 28%.
This rate applies to long-term gains (assets held for more than one year). Short-term gains (held one year or less) are taxed as ordinary income, which could be higher or lower than 28% depending on your bracket.
What Counts as a Collectible?
The IRS defines collectibles under Section 408(m) of the Internal Revenue Code. The list includes:
- Works of art
- Rugs and antiques
- Metals and gems
- Stamps or coins
- Alcoholic beverages
- Certain other tangible personal property
For precious metals, the IRS specifies that certain bullion and coins are treated as collectibles. Specifically, gold, silver, platinum, or palladium bullion, and any coin or metal, are considered collectibles unless they meet specific criteria for being “gold, silver, platinum, or palladium bullion” that is “in the physical possession of” the investor. However, for tax purposes, most bullion and coins are treated as collectibles, regardless of form.
Notably, the IRS has carved out an exception for certain gold and silver coins, such as American Eagle coins, which are not treated as collectibles for IRA purposes, but for capital gains tax, they are still subject to the collectibles rate. The distinction is subtle: the IRA exception does not change the capital gains treatment.
How the Rate Applies to Precious Metals
When you sell precious metals at a gain, the gain is a capital gain. If you held the metal for more than one year, the gain is long-term and subject to the collectibles maximum rate of 28% for the 2026 tax year. If you held it for one year or less, the gain is short-term and taxed as ordinary income, which could be higher or lower than 28%.
For example, if your ordinary income tax bracket is 22%, you would pay 22% on short-term gains and 28% on long-term gains from collectibles. If your bracket is 32%, you would pay 32% on short-term gains and 28% on long-term gains. The 28% is a cap, not a floor.
Comparison: Collectibles vs. Other Assets
The table below compares the tax treatment of long-term capital gains for different asset types, using the 2026 tax year rates.
| Asset Type | Long-Term Capital Gains Rate | Notes |
|---|---|---|
| Stocks, bonds, real estate | 0%, 15%, or 20% | Based on taxable income |
| Collectibles (including precious metals) | Up to 28% | Maximum rate; lower if your bracket is lower |
| Qualified small business stock | Up to 28% | Special rules apply |
| Section 1250 real estate (depreciation recapture) | Up to 25% | Recapture portion |
Note that the rates for stocks and real estate are also set by statute and can change. The collectibles rate of 28% applies for the 2026 tax year.
What People Get Wrong
A common assumption is that the collectibles rate is a flat 28% applied to all gains from metals. That is incorrect. The rate is a maximum. If your taxable income places you in a lower capital gains bracket, you pay that lower rate, not 28%. For example, a single filer with taxable income under $47,025 in 2026 would fall in the 0% capital gains bracket, and thus pay 0% on long-term collectibles gains, not 28%.
Another misconception is that all coins are treated the same. While most bullion and coins are collectibles, certain coins, like American Eagle gold coins, are not treated as collectibles for IRA purposes, but they are still subject to the collectibles rate for capital gains. This nuance often confuses investors.
State Taxes and Reporting
In addition to federal taxes, state taxes may apply to gains from precious metals. Each state has its own rules, and some states have no income tax or special treatment for collectibles. Check with your state’s tax authority or a tax professional for your specific situation.
Sales tax on the purchase of precious metals is also a state matter. Some states exempt bullion and coins from sales tax, while others do not. The exemptions can change with each legislative session, so verify the current rules in your state.
The Role of Your Tax Professional
Tax rules for collectibles are complex and can change. Your individual tax situation—your income, filing status, holding period, and state of residence—affects how the collectibles rate applies to you. Consult a CPA, tax professional, or enrolled agent for guidance on your specific circumstances.
Frequently Asked Questions
What is the collectibles tax rate for 2026?
For the 2026 tax year, the maximum long-term capital gains rate for collectibles is 28%. This rate is set by statute and can change in future years. Your actual rate may be lower if your taxable income falls into a lower capital gains bracket.
Do I pay 28% on all gains from selling gold?
No. The 28% is a maximum rate. If your ordinary income tax bracket is lower than 28%, you pay that lower rate on long-term gains from gold. If your bracket is higher, you still pay only 28% on long-term gains. Short-term gains are taxed as ordinary income.
Are all precious metals considered collectibles?
Yes, for federal capital gains tax purposes, gold, silver, platinum, and palladium bullion, and most coins, are treated as collectibles. There are limited exceptions for certain coins in retirement accounts, but that does not change the capital gains treatment.
How is the collectibles rate different from the regular capital gains rate?
The regular long-term capital gains rates are 0%, 15%, or 20%, depending on your income. The collectibles rate is a separate maximum of 28% that applies to gains from collectible assets. You pay the lower of your regular rate or 28%.
Does the collectibles rate apply to short-term gains?
No. Short-term gains (assets held one year or less) are taxed as ordinary income, not as collectibles. The collectibles rate applies only to long-term gains.
Conclusion
Understanding the collectibles tax rate is essential for anyone selling precious metals. The 28% maximum for 2026 is not a flat rate, and your actual tax depends on your income and holding period. Always consult a tax professional for advice tailored to your situation.
Common questions
What is the collectibles tax rate for 2026?
For the 2026 tax year, the maximum long-term capital gains rate for collectibles is 28%. This rate is set by statute and can change in future years. Your actual rate may be lower if your taxable income falls into a lower capital gains bracket.
Do I pay 28% on all gains from selling gold?
No. The 28% is a maximum rate. If your ordinary income tax bracket is lower than 28%, you pay that lower rate on long-term gains from gold. If your bracket is higher, you still pay only 28% on long-term gains. Short-term gains are taxed as ordinary income.
Are all precious metals considered collectibles?
Yes, for federal capital gains tax purposes, gold, silver, platinum, and palladium bullion, and most coins, are treated as collectibles. There are limited exceptions for certain coins in retirement accounts, but that does not change the capital gains treatment.
How is the collectibles rate different from the regular capital gains rate?
The regular long-term capital gains rates are 0%, 15%, or 20%, depending on your income. The collectibles rate is a separate maximum of 28% that applies to gains from collectible assets. You pay the lower of your regular rate or 28%.
Does the collectibles rate apply to short-term gains?
No. Short-term gains (assets held one year or less) are taxed as ordinary income, not as collectibles. The collectibles rate applies only to long-term gains.
Read next
- Capital Gains Tax on Gold: Long-Term vs Short-Term Learn how gold gains are taxed: short-term as ordinary income, long-term as collectibles, with rates, holding period rules, and key distinctions.
- How Gold Is Taxed in the US: The Collectibles Rule Physical gold is taxed as a collectible, not a capital asset. Learn the 28% maximum long-term rate for 2026, what triggers it, and what doesn't.