Georgia Full Exemption Since 2018

Georgia exempts sales of gold, silver, and platinum bullion and coins from state sales tax under Official Code of Georgia Annotated (O.C.G.A.) Section 48-8-3(88). The current exemption took effect July 1, 2018, replacing an earlier narrower provision and a brief period when the exemption had expired. It has been stable since.

Georgia’s combined state and local sales tax rates range from 6% in lightly taxed counties to 9% in Atlanta and parts of metropolitan Atlanta. The state rate is 4%, and counties layer local sales taxes (LOST, SPLOST, ELOST, TSPLOST) ranging from 2% to 5%.

The exemption applies to the full combined stack. A $10,000 gold purchase in Atlanta saves up to $890 in combined sales tax relative to what a non-exempt good would incur.

What Qualifies Under Section 48-8-3(88)

The statute exempts “the sale of any product made from 50 percent or more of gold, silver, or platinum, whether in coin or bullion form.” The 50% composition threshold is unusual and merits attention.

Standard bullion items. Gold bars, ingots, and coins composed of nearly pure gold (.9999, .999, .995) easily exceed the 50% threshold. Silver bars, rounds, and coins at standard fineness (.999) qualify. Platinum bullion products at .9995 qualify.

Legal tender coins with mixed composition. Pre-1965 U.S. silver coinage is 90% silver and qualifies. Pre-1933 U.S. gold coinage is 90% gold (Double Eagles are .900 fine) and qualifies. Silver War Nickels (1942-1945) are 35% silver and do NOT qualify under the 50% composition test. This is a meaningful distinction for collectors and junk silver buyers.

Jewelry scenarios. 14k gold jewelry is 58.3% gold and technically meets the 50% threshold. In practice, Georgia Department of Revenue has interpreted the exemption as limited to items sold primarily for investment purposes rather than ornamental jewelry. Gold chains, rings, and decorative items remain taxable despite meeting the composition test. Medallions marketed as investment products with appropriate composition do qualify.

Palladium and other metals. The Georgia statute specifies gold, silver, and platinum. Palladium is not listed. This is a notable omission because many states include palladium in their precious metals exemptions. Palladium bars, rounds, and American Palladium Eagles are technically taxable in Georgia under a strict reading of the statute, though industry interpretation and dealer practice have varied.

The 2018 Restoration and Regulatory History

Georgia had an earlier precious metals exemption that expired in 2016 due to a sunset provision in the original legislation. From 2016 through mid-2018, Georgia taxed bullion at full combined rates, which drove significant commerce to neighboring exempt states (South Carolina, Tennessee, Alabama above $1,500, Florida above $500 per item).

The 2018 restoration (House Bill 935) passed with bipartisan support and removed the sunset provision, making the exemption permanent. The restoration also updated the composition language to the current 50% threshold.

Since 2018, the exemption has been stable and there have been no serious legislative efforts to repeal or narrow it. Georgia’s active coin dealer community and industry advocacy (led by the Industry Council for Tangible Assets and successor organizations) has maintained consistent support.

Combined Rate Variations in Georgia

Georgia local sales taxes include multiple components layered on the 4% state rate:

  • LOST (Local Option Sales Tax): 1% in most counties
  • SPLOST (Special Purpose Local Option Sales Tax): 1% where enacted
  • ELOST (Education Local Option Sales Tax): 1% where enacted
  • TSPLOST (Transportation Special Purpose Local Option Sales Tax): 0-1% in participating counties
  • MARTA tax: 1% in Fulton, DeKalb, Clayton counties for transit funding

Combined effective rates by major area:

  • Atlanta (Fulton County): 8.9% (includes MARTA)
  • Cobb County: 6%
  • Gwinnett County: 6%
  • DeKalb County: 8% (includes MARTA)
  • Savannah (Chatham County): 7%
  • Augusta (Richmond County): 8%

The exemption applies across all of these combined rate stacks. Qualifying bullion purchases incur $0 tax regardless of the buyer’s Georgia location.

Federal Capital Gains and Georgia Income Tax

Georgia’s state income tax is tiered with a top rate of 5.39% (recently reduced toward a flat 4.99% target). Capital gains are taxed as ordinary income.

Federal treatment applies: gold is a collectible under IRC Section 408(m), with long-term gains taxed at up to 28%. See the capital gains tax on gold guide for full mechanics.

A Georgia resident selling gold at a long-term gain typically faces roughly 33% combined taxation (28% federal plus 5% state). This is moderate relative to other Southeastern states: Florida and Tennessee have no state income tax, while North and South Carolina have similar ranges.

Practical Buying Guidance

In-state dealers. Atlanta hosts the majority of Georgia’s dealer infrastructure. Savannah, Augusta, Columbus, and Macon have smaller but established operations. Gainesville Coins, one of the country’s largest online precious metals dealers, is based in Lutz, Florida but serves the Southeastern market including substantial Georgia clientele.

Online purchases. National dealers apply the Georgia exemption automatically on qualifying items (gold, silver, platinum meeting 50% composition). Buyers purchasing palladium should verify the dealer’s treatment, as the statute does not explicitly include palladium.

Palladium consideration. Because the statute omits palladium, buyers interested in palladium bullion should either verify dealer treatment (some dealers apply the exemption broadly on precious metals, others strictly follow the statute) or consider purchasing from out-of-state dealers that do not collect Georgia tax.

Jewelry is not exempt. Gold chains and rings, even at 14k or 18k (meeting the 50% composition test), are taxable as jewelry rather than bullion. Investment purchases should be clearly bullion products: bars, rounds, coins.

Cross-border considerations. Georgia is bordered by Florida, Alabama, Tennessee, North Carolina, and South Carolina. Florida taxes sub-$500 purchases per item. Alabama exempts above $1,500 per transaction. Tennessee, North Carolina, and South Carolina are all fully exempt. Georgia’s exemption is comparable to or better than most neighbors, so cross-border shopping is rarely tax-motivated.

Regional Comparison

Florida exempts per-item purchases above $500. See our Florida gold sales tax guide.

Alabama exempts single transactions exceeding $1,500.

Tennessee is fully exempt for precious metals and coins.

South Carolina is fully exempt for gold, silver, platinum, and palladium.

North Carolina is fully exempt for precious metals bullion and coins.

For the full 50-state map, see the sales tax by state guide.

Georgia’s 50% Composition Rule in Practice

The 50% composition threshold is meaningful in a few specific scenarios:

  1. War Nickels (1942-1945) at 35% silver do not qualify. These are taxable in Georgia even when sold for silver content.
  2. Silver-clad commemoratives from various issuers at less than 50% silver do not qualify.
  3. Sterling silver (.925) comfortably qualifies as exempt when sold as bullion (sterling silver rounds or ingots). Sterling silver flatware and decorative items are treated as jewelry/tableware and remain taxable.
  4. Gold-filled and gold-plated items do not meet 50% composition and remain taxable.

For standard bullion investors, the composition threshold is a non-issue. For specialty buyers and collectors, it occasionally matters.

Frequently Asked Questions

Does Georgia exempt palladium bullion?

The statute lists gold, silver, and platinum specifically and does not mention palladium. Under strict reading, palladium is taxable. Dealer practice has varied; some apply the exemption broadly on precious metals, others strictly follow the statute. Buyers should verify at checkout on palladium purchases.

Are pre-1965 90% silver coins exempt?

Yes. Pre-1965 U.S. silver dimes, quarters, half dollars, and dollars are 90% silver, which clearly exceeds the 50% composition threshold. These coins are exempt as bullion when sold for silver content.

Are War Nickels exempt?

No. 1942-1945 Jefferson Nickels with 35% silver content do not meet the 50% composition threshold and are taxable even when sold for silver content. This is a specific carve-out of Georgia’s statute.

Does the exemption apply to Atlanta’s 8.9% combined rate?

Yes. The exemption applies to the full state, county, and city combined rate stack. Atlanta buyers (Fulton County with MARTA tax) see $0 sales tax on qualifying bullion purchases just as rural Georgia buyers do.