Collectibles Tax Rate: What It Is and What It Covers

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 and palladium bullion, and coins generally, are treated as collectibles. Section 408(m)(3)(B) carves out a narrow exception for bullion of a required fineness — but only where it is in the physical possession of a trustee, not of the investor. That distinction matters enormously inside a retirement account, where taking personal possession of the metal is precisely what converts it into a taxable distribution. Outside a retirement account the exception does not help at all: for capital gains purposes, bullion and coins are collectibles regardless of who holds them.

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%. 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 pay 22% on short-term gains — and also 22% on long-term gains from collectibles, because the 28% ceiling is above your rate and therefore never binds. If your bracket is 32%, you pay 32% on short-term gains but only 28% on long-term gains, because there the cap does bind. The 28% is a cap, not a floor, and this worked example is the place people most often get it backwards.

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.

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 ordinary rate is below 28%, you pay that rate, not 28%. Note carefully what this does not mean: collectibles gain does not fall into the 0% / 15% / 20% brackets that apply to ordinary long-term gains. There is no 0% rate on a collectibles gain. A taxpayer in the 10% bracket pays 10%, and one in the 12% bracket pays 12% — low, but never zero.

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.

Applying the 28% collectibles rate

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.