Selling Gold in Indiana: Taxes, Dealer Rules and How to Prepare

Indiana at a glance for gold sellers

Indiana is a reasonably straightforward state for selling gold. The sales-tax side is friendly: coins, bullion and legal tender that meet the statutory tests are exempt from the state’s 7% gross retail tax. The income-tax side is less generous: Indiana has not enacted a special subtraction for bullion gains, so any profit flows through to Indiana adjusted gross income and is taxed at the flat state rate, with county local income tax layered on top.

The sales-tax exemption affects whether a dealer collects any tax from you on the transaction (they should not, for qualifying items). The income tax hits later when you file your Indiana IT-40. Dealer-conduct rules affect how the transaction is documented.

Sales tax on gold and silver sales in Indiana

Indiana’s base state sales tax rate is 7%. Precious metals get a specific exemption under IC 6-2.5-5-47, which exempts from state gross retail tax any transaction involving the sale of:

• Coins that are permitted investments by an individual retirement account under 26 U.S.C. 408(m);
• Bullion that would be a permitted IRA investment under 26 U.S.C. 408(m) if held by a trustee; and
• Legal tender.

The exemption has no dollar threshold: what matters is whether the item itself meets the statutory test.

The Indiana Department of Revenue elaborates in Sales Tax Information Bulletin #50 (October 2023). The bulletin confirms bullion fineness thresholds for IRA eligibility: at least .995 for gold, .999 for silver, and .9995 for platinum and palladium. Pieces below those thresholds are treated as collectibles and remain subject to the 7% tax.

Legal tender is its own category. U.S. coins with any face value, circulating or commemorative, are exempt. Foreign currency is not treated as legal tender here, though foreign gold coins that meet IRA fineness (Canadian Maple Leafs, Austrian Philharmonics) still qualify under the IRA-coin prong of the statute.

Indiana income tax on gold gains

No sales-tax exemption changes what you owe on the profit. Any gain from selling gold flows through to Indiana adjusted gross income because Indiana starts from federal AGI, which already includes reported capital gains. Indiana then applies its flat state rate.

According to the Tax Foundation, Indiana’s flat individual income tax rate is 2.95% for tax year 2026, scheduled to drop to 2.90% in 2027 under current law. Indiana has no separate preferential rate for long-term capital gains at the state level.

On top of that, every Indiana resident pays a county local income tax (LIT) based on their county of residence or principal workplace. LIT rates vary by county; check the current rate for your county on the Indiana DOR website before filing.

Indiana has not enacted any bullion-specific capital gains subtraction. Several states have taken that step (Arizona, Utah, Louisiana, Arkansas and others), but as of tax year 2026, Indiana is not among them.

Cost basis matters

Gain is proceeds minus cost basis. Basis is normally what you paid, plus dealer premium, shipping and insurance. Inherited gold gets a step-up to fair market value on the date of the previous owner’s death; gifted gold typically carries the giver’s basis. Without documentation, the IRS may treat your basis as zero and tax the full sale price. Receipts, inherited-item appraisals and prior dealer invoices are worth tracking down before you sell.

Federal taxes on gold sales

Indiana’s rules sit on top of the federal framework. The IRS treats physical gold, silver, platinum and palladium as collectibles under IRS Publication 550:

• Gains on items held more than one year are long-term and taxed at a maximum federal rate of 28% (not the 15% or 20% that applies to stocks).
• Gains on items held one year or less are short-term and taxed as ordinary income at your marginal federal rate.
• Every sale is reportable on Schedule D. Losses can offset other capital gains under the usual rules.

No state law overrides federal treatment. For a complete breakdown, see our guide to taxes when you sell gold, and for a side-by-side state comparison see the state sales tax on bullion map.

Dealers may be required to file IRS Form 1099-B when buying certain quantities of bullion from you. Ask in advance whether they will issue one so you can match it to your records.

What a legitimate Indiana buyer looks like

Indiana regulates businesses that buy secondhand precious metal items from the public under Title 24 of the Indiana Code (Trade Regulations), with separate provisions for precious metal dealers and used jewelry dealers. Registration requirements, record-keeping obligations and holding-period rules depend on which chapter applies to a given dealer’s business model and are periodically updated by the Indiana General Assembly; verify exact figures at iga.in.gov for your situation.

What to expect in practice from a reputable Indiana buyer, regardless of which chapter governs their business:

Local municipal ordinances in cities like Indianapolis, Fort Wayne, Evansville and South Bend may impose additional requirements on secondhand dealers. Confirm the local rules in your city before completing a transaction of significant value.

How to prepare and get the best offer

Indiana sellers have good options: specialty coin and bullion dealers, dedicated gold buyers, pawn shops with precious metals desks, and online platforms that bring verified buyers to you. The right path depends on what you have.

Know the value before you walk in. Purity and weight dictate melt value. Our gold value calculator gives a quick melt estimate using today’s spot price. Dealer offers typically come in below melt: a 10% to 20% discount is common for bullion; jewelry and scrap see steeper discounts because of refining fees and non-metal components.

Separate bullion from scrap and jewelry. Bullion coins and bars with clear mint marks will attract bullion dealers at prices near melt. Mixed jewelry, broken chains and dental gold are refining material and typically fetch 70% to 85% of melt depending on karat purity. Letting a buyer lump everything together usually works against you.

Get competing offers. Even in the same Indiana city, two reputable buyers can quote materially different numbers for the same lot on the same day. Collecting three quotes is the single highest-leverage step you can take.

Use verified Indiana directories. The Goldiew Indiana gold dealer directory lists businesses by city with ratings, hours and contact information. For buyers that handle both metal and secondhand items, see the Indiana pawn shop directory.

Request sealed offers from multiple buyers at once. The Goldiew sell-gold platform lets you post a free request and receive sealed bids from up to 15 verified Indiana buyers. You see all offers before accepting any, with no obligation.

Before selling outright, consider whether your gold has a role in your retirement plan. Some Indiana savers hold physical gold outside of retirement accounts for liquidity while maintaining a self-directed gold IRA for tax-deferred structure. If you are weighing that tradeoff, Augusta Precious Metals’ free Gold & Silver IRA Info Kit explains how a self-directed gold IRA works alongside direct ownership, with no sales pressure.

Sales-tax questions on specific transactions and county LIT rates should be checked at in.gov/dor. For a comparison across states, see our Indiana sales-tax on bullion guide.

Red flags to walk away from

The precious metals buyback market attracts both honest operators and bad actors. Spotting the second group early saves money and avoids disputes that are hard to unwind after you have signed a receipt and left the store.

If you believe you were defrauded in Indiana, the Indiana Attorney General’s Consumer Protection Division accepts complaints. For broader fraud concerns, see the FINRA Investor Alert on precious metals fraud.