Selling Gold in Texas: No Sales Tax, No Income Tax, and What Still Applies

Texas Removes Sales Tax on All Precious Metals Transactions

Texas Tax Code § 151.336, last amended by House Bill 78 in 2013, exempts gold, silver, platinum, and palladium from state sales tax on purchases of any amount. Before 2013, the exemption only applied to transactions over $1,000. That threshold is gone. A single silver coin and a 100-ounce gold bar purchased at a Texas dealer receive identical treatment: no Texas sales tax due.

The exemption covers bullion in standard bar and round form and numismatic coins. Texas Comptroller Rule 3.336 provides the implementing regulatory guidance. If a dealer collects sales tax on a precious metals transaction in Texas, that is an error. The exemption applies whether you are buying or selling within the state.

Texas is one of roughly 40 states that exempt precious metals from sales tax to some degree. For a state-by-state comparison of current exemption status, the state bullion sales tax map covers all 50 states with verified current status.

No State Income Tax Means No State Capital Gains on Your Gold Sale

Texas is one of nine US states with no state income tax. That absence is written into the Texas Constitution. When you sell gold at a profit in Texas, the state collects nothing on the gain. A Texas resident who sells $50,000 of gold bullion at a $10,000 profit owes $0 to the Texas Comptroller. The same transaction in California could trigger a state capital gains bill of $1,300 or more depending on income.

The other eight no-income-tax states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. For gold owners, Texas consistently ranks among the most favorable due to the combination: no purchase sales tax and no income tax on profits. Neither benefit requires any filing or action on your part.

Federal Capital Gains Tax Applies in Full: What Texas Sellers Must Know

Texas favorability ends at the state line. The IRS taxes profits from selling gold, silver, platinum, and palladium under the collectibles classification in Internal Revenue Code § 408(m). That classification matters because collectibles face a different rate structure than stocks or real estate.

For gold held longer than one year (long-term), the maximum federal rate is 28%. That is higher than the standard long-term capital gains rate of 15% to 20% that applies to stocks or real estate held the same duration. In practice, your effective rate is the lower of 28% or your ordinary income rate. A retiree in the 22% ordinary income bracket selling long-term gold pays 22%, not 28%. A high earner in the 37% bracket pays 28%. IRS Topic 409 governs these rates.

For gold held one year or less (short-term), gains are taxed at your ordinary income rate, which ranges from 10% to 37% depending on your total taxable income for the year. Short-term gold gains get no preferential rate.

Your taxable gain is your profit, not your total sale proceeds. If you bought an ounce of gold for $1,800 and sold it for $2,400, the taxable amount is $600. Accurate cost-basis records, including original purchase receipts, account statements, and any brokerage confirmations, are essential. Without them, the IRS may treat your entire proceeds as gain.

For inherited gold, the cost basis is generally the fair market value on the date of the original owner’s death (the “stepped-up basis” under current federal rules). For gold received as a gift, the basis calculation depends on whether the asset has appreciated or depreciated since the original purchase. Consult your tax advisor for your specific situation. For the complete federal treatment across all sale scenarios, see the complete guide to taxes when you sell gold.

The Texas Bullion Depository: Storage Built for Texas Residents

Texas created the state Bullion Depository through House Bill 483 in 2015. It is the only state-operated precious metals storage facility in the United States. The depository holds gold, silver, platinum, palladium, and rhodium in custodial accounts for individuals, businesses, and state government entities. Account holders retain title to their metals; the state holds them in custody, not ownership.

The depository is a storage and custody facility, not a sales venue. You deposit metal and maintain ownership; you do not sell through it. Withdrawals can be in physical metal or through redemption processes described in the account terms.

For investors holding physical metals in a self-directed IRA, the depository matters as an IRS-approved storage option. Several custodians list it among their approved depositories. Birch Gold Group lists both the Texas Precious Metals Depository and the Texas Bullion Depository among its approved storage partners. Noble Gold Investments operates its own Texas-based depository. An IRA account storing metals within Texas is fully permissible under IRS rules, and Texas residents increasingly use in-state custody as an option.

HB 1056: Texas Formally Recognizes Gold and Silver as Legal Tender

Governor Greg Abbott signed House Bill 1056 on June 22, 2025. The law establishes that gold and silver specie meeting specific weight and purity standards are legal tender in Texas. Acceptance remains voluntary: no creditor can be required to accept gold or silver as payment. The bill also authorizes the Texas Comptroller to establish or authorize electronic systems for transactions backed by gold and silver bullion held in trust.

The implementation timeline is phased. Texas Government Code § 2116.101 (the legal tender provisions) takes effect September 1, 2026. The transactional currency system, which would enable electronic payments backed by physical metals held at the depository, becomes operational May 1, 2027.

The practical effect on someone selling physical gold today is minimal. HB 1056 does not alter sales tax rules, change federal reporting obligations, or affect how capital gains are calculated. Its significance is structural: Texas is building state-level monetary infrastructure around gold and silver that no other state currently operates at this scale. For long-term holders, the law signals that Texas intends to remain favorable to precious metals ownership well beyond current tax rules.

Texas Dealer Regulations: What to Expect When Selling to a Dealer

If you sell used gold jewelry, bullion, or coins to a dealer or shop that buys metals from the public, Texas Occupations Code Chapter 1956 governs that dealer’s obligations, not yours. Texas regulates businesses that purchase secondhand precious metals from individuals to deter theft-driven sales and create a paper trail for law enforcement.

When selling to a regulated dealer in Texas, expect these steps:

• Present a valid government-issued photo ID
• Have the transaction recorded: description and weight of items, your identifying information, and the purchase price
• Wait for any required reporting to local law enforcement

These requirements bind the dealer, not you. As a private individual selling your own lawfully obtained gold, you do not register, obtain a license, or file reports with any Texas authority. Your obligation is federal: report any taxable gain on your annual return using Schedule D and Form 8949.

Selling to another private individual rather than a licensed dealer does not trigger Chapter 1956 obligations on either party. Standard federal tax reporting rules still apply to any gain you realize on a private sale.

How to Sell Gold in Texas: Four Steps That Cover the Basics

The favorable tax picture in Texas simplifies the process. Here is the standard path for a Texas seller:

Step 1: Know what your gold is worth. Gold value depends on weight, purity, and the live spot price. The Goldiew gold value calculator estimates current market value in real time. For numismatic coins, collector value can run well above melt value. An appraisal from a certified dealer is worth the time for pieces with significant numismatic potential or unusual markings.

Step 2: Pull your cost basis records. Find original purchase receipts, brokerage statements, or inheritance documentation showing the date and price you acquired the metal. For inherited gold, you’ll need the fair market value on the date of the original owner’s death. For gifted gold, the basis rules are more complex. These records directly determine how much of your sale price is taxable.

Step 3: Compare your options. Texas residents can sell to local coin and bullion dealers, online metal-buying platforms, auction houses, or directly to individual buyers. Local dealers offer speed and certainty of payment. Online buyers and platforms add price competition. Goldiew lists verified dealers in the Texas gold dealer directory and Texas coin dealer directory by city, with buyer profiles and verified ratings.

Post one free request on /sell-gold/ to receive sealed competing offers from up to 15 verified buyers. There is no obligation to accept any offer.

Step 4: Report the gain on your federal return. Use Form 8949 to list each sale with the asset description, acquisition date, sale date, gross proceeds, cost basis, and net gain or loss. Carry totals to Schedule D of your Form 1040. Texas requires no corresponding state filing for capital gains income.