Washington State Ends Sales Tax Exemption on Precious Metals: What This Means for You in 2026

Effective January 1, 2026, a long-standing tax rule in Washington quietly but significantly changed. The state repealed its decades-old sales tax exemption on gold, silver, and other precious metal bullion and coins, meaning these purchases are now treated like most other retail goods for tax purposes.

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What Changed on January 1, 2026

The rate at point of sales: 10.3% sales tax.

For more than 40 years, Washington allowed tax-free purchases of bullion and monetized coins under an exemption adopted in 1985. That exemption has now been repealed.

Here’s what now applies:

Sales tax is back on bullion purchases.
When you buy precious metal bullion—whether coins, bars, or rounds—you are now charged Washington state and local retail sales tax, which in many areas totals around 10%. This applies whether you are buying a single gold coin or making a larger investment purchase.

Business & Occupation (B&O) tax applies to sellers.
Dealers selling bullion to end consumers are subject to Retailing B&O tax, while sales to other resellers fall under Wholesaling B&O tax. This brings bullion transactions fully into Washington’s standard business tax framework.

Selling bullion is still generally untaxed for individuals.
If you sell your gold or silver to a dealer in Washington, you typically do not pay sales tax on that transaction. The tax is imposed on the retail purchase—not on the sale back to a dealer—though income or capital-gain considerations may still apply depending on your situation.

What This Means for Buyers

For Washington residents, the most immediate impact is cost. A purchase that once avoided sales tax now comes with a meaningful increase at the register. On higher-value bullion purchases, that additional 10% can be substantial and may influence both timing and purchasing decisions.

Some buyers are already reassessing where they purchase metals. Nearby states such as Oregon and Idaho have become part of the conversation, particularly for larger acquisitions where tax savings could offset travel or shipping costs.

It’s also worth noting that not all states have taken this approach. Nebraska, for example, continues to maintain a bullion sales tax exemption, highlighting how uneven the tax landscape has become across the country.

What This Means for Dealers and Businesses

Washington-based precious metal dealers are navigating a new competitive reality. With higher out-of-pocket costs for in-state buyers, some businesses are concerned about customers crossing state lines or shifting purchases online to avoid sales tax altogether.

From a compliance standpoint, businesses must now ensure:

• Proper collection and remittance of retail sales tax

• Correct classification of transactions for Retailing vs. Wholesaling B&O tax

• Updated pricing, invoicing, and point-of-sale systems

These changes add administrative complexity at a time when margins in the precious metals market can already be tight.

Why This Matters Beyond Precious Metals

This policy change reflects a broader trend in Washington toward narrowing exemptions and expanding the tax base. Long-standing carve-outs—once considered untouchable—are increasingly being revisited as the state looks for stable revenue sources.

For investors and business owners alike, the takeaway is clear: tax assumptions based on “how it’s always been done” can change, sometimes quickly, and often with real financial impact.

How We Can Help

Whether you’re an individual investor, a collector, or a business operating in the precious metals space, these changes raise important questions around tax planning, compliance, and strategy. If you have questions about bullion transactions, sales tax exposure, B&O tax obligations, or how this change fits into your broader financial picture, we’re here to help you navigate the shift with clarity and confidence.