Texas Full Exemption: No Threshold, No Local Tax
Texas fully exempts gold, silver, platinum, and palladium bullion, and numismatic coins with a precious metals component, from state sales tax. The exemption is codified at Texas Tax Code Section 151.336 and has been in effect since 2013. Unlike threshold-based states such as California and New York, Texas imposes no minimum purchase amount. A $50 silver round and a $50,000 gold bar receive identical treatment.
The statute removed the previous $1,000 minimum that had existed in earlier versions of Texas law. The 2013 amendment passed with strong bipartisan support, positioning Texas as one of the most bullion-friendly states in the country.
Because the exemption operates at the state level and Texas local sales taxes are layered on the state base, precious metals are also free from the 2% local portion that cities, counties, and transit authorities typically add. The combined Texas sales tax that would otherwise apply tops out at 8.25%.
What Qualifies Under Section 151.336
The statute exempts “gold, silver, or numismatic coins, or platinum, gold, or silver bullion.” Implementing guidance from the Texas Comptroller of Public Accounts defines each term broadly.
Bullion includes bars, rounds, and ingots of gold, silver, platinum, or palladium of any fineness, sold for their metal content. PAMP Suisse, Credit Suisse, Royal Canadian Mint, Perth Mint, Valcambi, and private mint rounds all qualify.
Numismatic coins include both legal tender government issues and collector coins. American Gold Eagles, American Silver Eagles, Canadian Maple Leafs, South African Krugerrands, pre-1933 U.S. gold coins, and graded rarities are all covered. Unlike California, Texas does not carve out high-premium numismatics from the exemption.
Platinum and palladium are included on equal footing with gold and silver. Platinum American Eagles and palladium bars qualify.
Jewelry does not qualify. The statute is limited to bullion and coins. Gold chains, rings, and decorative items remain subject to the standard sales tax regardless of karat content.
Accessories like coin capsules, storage tubes, safes, and precious metals display cases are not covered by the exemption and are taxable at standard rates.
The Texas Bullion Depository
Texas is the only U.S. state operating its own bullion depository. The Texas Bullion Depository opened in 2018 and is located in Leander, north of Austin. It is administered by the Texas Comptroller’s office and operated by a private contractor.
The depository accepts deposits from individual investors, institutions, IRAs, and state entities. Storage fees are competitive with private options such as Brink’s and Delaware Depository. For Texas residents, using the state depository means the entire acquisition, storage, and any in-kind distribution remains inside a sales tax-free jurisdiction.
The depository is not legally required for the tax exemption, but it is a uniquely Texan option for buyers who want instate institutional storage. For a comparison against other vaulting options, see our depository comparison guide.
Federal Capital Gains Still Apply
Texas residents enjoy a full sales tax exemption on purchases and a state without an income tax on sales. Texas does not impose state capital gains tax because it does not tax personal income at all. This is a meaningful advantage relative to states like California and New York.
The federal picture is unchanged. Gold and silver are classified as collectibles under Internal Revenue Code Section 408(m). Long-term gains (held more than one year) are taxed at up to 28% at the federal level. Short-term gains are taxed as ordinary income at the taxpayer’s marginal bracket. Full mechanics are covered in our capital gains tax on gold guide.
Net effect for a Texas resident: the only tax on gold investing is the federal long-term rate, assuming holdings are held for more than one year.
Practical Buying Guidance for Texans
Buy from in-state or out-of-state dealers without distinction. Because Texas exempts precious metals, buying from a Dallas coin shop and buying from a California dealer shipping into Texas produce the same zero-tax result. Wayfair-era nexus rules mean out-of-state dealers will identify Texas delivery addresses and apply the exemption automatically.
Major in-state dealers. Texas hosts several large national and regional operations. Dillon Gage is headquartered in Addison. Texas Precious Metals is based in Shiner. Austin Rare Coins operates in Austin. The Texas dealer ecosystem is among the most developed in the country, reflecting both the tax environment and the state’s general business climate.
Watch invoice line items on accessories. A dealer invoice combining a gold coin with a display case will show the coin as exempt and the case as taxable. Some sellers separate these clearly; others bundle them in ways that trigger full taxation of the invoice. Request itemization on larger orders.
Jewelry purchases are not exempt. Gold investment via 22k jewelry remains taxable. This is relevant to buyers considering gold-content jewelry as an investment alternative.
IRAs and institutional accounts. Precious metals held in a Texas-based IRA or LLC are outside consumer sales tax by default. The exemption is still useful for personal direct holdings.
Comparison to Neighboring States
Texas sits in a generally bullion-friendly region.
Louisiana exempts precious metals and coins.
Oklahoma exempts bullion and investment coins.
Arkansas exempts coins and bullion.
New Mexico does not exempt and imposes a gross receipts tax between 5.0% and 8.6875% depending on locality. Texas buyers near the El Paso border have a meaningful advantage over New Mexico residents just across the line.
For a complete map of state treatment, see the sales tax by state guide.
Why Texas Passed the Exemption
The 2013 removal of the $1,000 threshold was part of a broader legislative pattern framing gold and silver as money rather than commodities. Representatives arguing for the full exemption noted that Texas does not tax the exchange of Federal Reserve notes for goods and should not tax the exchange of one form of money (dollars) for another (specie).
This framing has spread. States that have since moved to full exemption, including Ohio in 2021 and others, have used similar logic. Texas has also enacted legislation recognizing gold and silver bullion as legal tender for certain state government transactions, though the practical reach of those laws is limited.
Frequently Asked Questions
Is there any purchase amount too small for the Texas exemption?
No. The exemption applies from the first dollar. A single silver round purchased for $35 is exempt, as is a $500,000 gold bar purchase. The pre-2013 $1,000 minimum was eliminated.
Do Texas coin shops charge sales tax on numismatic coins?
Not on the coin itself. Section 151.336 covers numismatic coins explicitly, including pre-1933 U.S. gold, graded rarities, and proof coinage. Associated items like display cases, reference books, and supplies are taxable.
If I buy gold online from an out-of-state dealer, does the Texas exemption apply?
Yes. Dealers with nexus in Texas (most major online operations) will recognize the Texas delivery address and apply the exemption. Dealers without Texas nexus do not collect tax on shipments into Texas regardless, so the outcome is the same.
Does Texas tax capital gains on gold?
Not at the state level. Texas has no state income tax, so capital gains on precious metals are subject only to federal tax, generally the 28% maximum long-term collectibles rate for assets held more than one year.