Sales Tax on Gold and Silver in Alabama
Alabama exempts refined bullion and money from state sales tax through May 31, 2028, if it meets purity and pricing conditions. Jewelry does not qualify.
Alabama does not charge state sales and use tax on qualifying bullion and money purchases. The exemption runs from June 1, 2018 to May 31, 2028 unless the Legislature extends it.
What Qualifies for the Exemption
Under Code of Ala. 40-1-1(7) and Code 40-23-4(a)(51), “bullion” means gold, silver, platinum, palladium, or a combination of those metals, in the form of bars, ingots, rounds, or coins. The item must have gone through a refining process, and its value must depend on its mass and purity rather than its form, numismatic value, or other value.
Three conditions must be met:
- The item must be refined.
- It must contain at least 80 percent gold, silver, platinum, or palladium. Act 2022-373 lowered this threshold from 90 percent; a 2018 Department notice still shows the older 90 percent figure.
- The sales price must fluctuate with and depend on the market price of the metal, not on rarity, condition, or age.
Coins sold for numismatic value do not qualify. Jewelry and works of art are excluded. There is no minimum purchase amount.
What Does Not Qualify
Jewelry is excluded from the exemption. Works of art are excluded as well. Coins whose price reflects rarity, condition, or age rather than the metal market do not qualify, even if they contain precious metal. An item that has not gone through a refining process does not qualify, and an item below the 80 percent purity threshold does not qualify.
The Time Limit
The exemption is temporary. It began June 1, 2018 under Act 2018-164, was extended and amended by Act 2022-373 (SB13, 2022), and regulation 810-6-2-.27 was amended effective November 14, 2022. It is scheduled to end May 31, 2028 unless extended by an act of the Legislature. No 2024-2026 act extending or changing it was found.
Local Sales Taxes
The sources reviewed do not address local sales taxes.
Alabama gold and silver tax treatment at a glance
| Item | Alabama treatment |
|---|---|
| Refined bullion meeting the 80 percent purity test and market-price test | Exempt from state sales and use tax through May 31, 2028 |
| Coins sold for numismatic value | Do not qualify |
| Jewelry | Excluded |
| Works of art | Excluded |
| Minimum purchase amount | None |
| Local sales taxes | Not addressed in the sources reviewed |
Official Sources
- Alabama Department of Revenue regulation 810-6-2-.27
- Act 2022-373 (SB13, 2022)
- Department notice on gold, silver, platinum, and palladium bullion and money
The rule was checked in October 2026 and can change with new legislation. Confirm with the state before a large purchase. For general background on how precious metals are taxed, see sales tax on gold.
What Buyers Commonly Get Wrong About Alabama’s Rule
A common mistake is assuming the exemption covers everything made of precious metal. It does not: jewelry and works of art are excluded, and a coin bought for its rarity, condition, or age does not qualify even if it is made of gold or silver.
Another frequent error is relying on the 90 percent purity figure that appears in the Department’s 2018 notice. Act 2022-373 lowered the threshold to 80 percent, so the older figure is out of date.
Some buyers also treat the exemption as permanent. It is scheduled to end May 31, 2028 unless the Legislature extends it, and no 2024-2026 act extending or changing it was found.
Finally, the exemption is described as applying to state sales and use tax. The sources reviewed do not address local sales taxes, so no assumption should be made about them either way.
The rule can change with new legislation. Buyers with questions about their own situation should consult a tax professional or their own preparer.
Common questions
Does Alabama charge sales tax on gold and silver bullion?
No state sales and use tax applies to qualifying bullion and money from June 1, 2018 to May 31, 2028 unless the Legislature extends the exemption. The item must be refined, contain at least 80 percent gold, silver, platinum, or palladium, and have a price that depends on the metal market.
Does the Alabama bullion exemption cover jewelry?
No. Jewelry is excluded from the exemption, as are works of art.
Do numismatic or collectible coins qualify for the Alabama exemption?
No. An item qualifies only if its sales price fluctuates with and depends on the market price of the metal, not on rarity, condition, or age. Coins sold for numismatic value do not qualify.
When does the Alabama bullion sales tax exemption end?
It is scheduled to end May 31, 2028 unless extended by an act of the Legislature. It began June 1, 2018 and was extended and amended by Act 2022-373.
Read next
- Sales Tax on Gold and Silver in Iowa Iowa exempts coins, currency and bullion from sales tax under Iowa Code 423.3(91). No dollar threshold or purity test applies. Learn what qualifies.
- Sales Tax on Gold and Silver in Minnesota Minnesota exempts only 99.9% precious metal bars and rounds from sales tax. Coins, jewelry, works of art and scrap metal remain taxable.
- Sales Tax on Gold and Silver in Montana Montana has no general sales tax, so no state sales tax applies to gold or silver bullion and coins. Learn what that means for buyers.
- Using Gold in a Transaction: A Disposal Without Cash Paying with metal is a disposal at fair market value, so a gain can arise with no cash received to pay the tax on it.
- Gold Mining Stocks and Tax: Securities, Not Metal Shares are securities and taxed as securities, so ordinary capital gains rates apply rather than the collectibles rate. The cleanest contrast on this site.