Washington’s New Gold and Precious Metals Tax: What’s Changing in 2026

For decades, Washington State treated certain precious metals differently than most retail goods. Gold, silver, platinum, and similar metals when sold in specific forms were exempt from state and local sales tax. That exemption shaped how bullion and certain coins were bought and sold across the state. That all changed in 2026.

Beginning January 1, 2026, Washington repealed its long-standing sales tax exemption for precious metal bullion and monetized bullion. From that date forward, these items are generally taxed in the same way as other tangible personal property sold at retail.

This update has prompted new questions and conversations across Washington, particularly in areas like Seattle, Kitsap County, and the broader Puget Sound region, where precious metals dealers, collectors, and investors have long operated under the prior exemption.

A Brief Look at How Things Worked Before 2026

Prior to 2026, Washington law exempted certain precious metal transactions from:

• Retail sales tax

• Retailing Business & Occupation (B&O) tax

If a transaction met the legal definition of precious metal bullion or monetized bullion, it was generally excluded from sales tax in Washington. This exemption dated back to the 1980s and placed Washington among a smaller group of states that treated bullion differently from other physical goods.

As a result, transactions involving gold or silver bars, rounds, and qualifying coins were often handled differently at the point of sale than purchases of jewelry, collectibles, or other tangible items.

What Changed on January 1, 2026

As of January 1, 2026, Washington repealed the exemption.

Under current law:

• Sales of precious metal bullion are treated as retail sales

• Sales of monetized bullion are also treated as retail sales

• These transactions are subject to state and local retail sales tax

• Gross proceeds from these sales fall under the retailing B&O tax classification

In short, qualifying bullion is no longer treated as a special category for sales tax purposes. Instead, it is taxed in the same general way as other physical goods sold at retail in Washington.

What Counts as Precious Metal Bullion

Washington law uses specific definitions, which are important for determining how transactions are classified.

Precious metal bullion generally refers to refined metals such as:

• Gold

• Silver

• Platinum

• Palladium

• Rhodium

To qualify as bullion, the item’s value must be primarily based on its metal content, not on craftsmanship, rarity, or decorative design. This typically includes bars, ingots, and rounds where the price tracks closely to the spot price of the underlying metal.

If the value is driven by factors other than metal content, such as artistic features or collectibility, the item may fall into a different category altogether.

What Is Monetized Bullion

Monetized bullion refers to coins or similar items that:

• Are made of precious metal, and

• Have been used, or are recognized, as a medium of exchange under U.S. law or the law of another country.

This category often includes certain government-minted coins, even if they are no longer commonly used in day-to-day commerce.

Before 2026, qualifying monetized bullion was treated differently from most consumer goods. Under the updated law, monetized bullion transactions are generally treated the same as other retail sales for tax purposes.

How Sales Tax Applies After the Change

With the exemption repealed, retail sales tax applies based on:

• The selling price of the bullion or coin

• The combined state and local sales tax rate where the sale occurs or where delivery takes place

Washington’s sales tax rate varies by jurisdiction. While the state base rate applies everywhere, cities and counties add local components. In many parts of the Puget Sound region, combined rates range from the mid-7% range to over 10%, depending on location.

The applicable rate is tied to where the sale is sourced, which is why local tax rates matter.

Business & Occupation (B&O) Tax Treatment

In addition to sales tax, Washington applies its Business & Occupation (B&O) tax to gross receipts from business activity conducted in the state.

Under the updated law:

• Gross proceeds from retail sales of precious metal bullion and monetized bullion fall under the retailing B&O tax classification

• This applies regardless of profitability, as the B&O tax is based on gross income rather than net income

For businesses that sell bullion, this represents a change in how revenue from these transactions is categorized for state tax purposes.

How This Typically Shows Up in Practice

For many people, this change becomes visible at the point of sale.

Transactions that previously did not include sales tax now reflect:

• State sales tax

• Applicable local sales tax

From a record-keeping perspective, the tax is collected and reported in the same way as other taxable retail transactions in Washington.

Because precious metals transactions are often less frequent than everyday purchases, the presence of sales tax on a bullion transaction can stand out more than it would on routine retail items.

Why Washington Made the Change

Washington does not impose a general personal income tax. Instead, the state relies more heavily on:

• Sales tax

• Property tax

• B&O tax

• Select excise taxes

The repeal of the precious metals exemption aligns bullion sales more closely with Washington’s broader tax structure, where most tangible personal property is subject to retail sales tax.

From a policy standpoint, this change reflects how tax classifications and exemptions evolve over time as legislatures revisit older statutes.

How People Are Learning About the Change

Most people encounter this update through:

• Transaction receipts

• Dealer communications

• State Department of Revenue publications

• Media coverage of 2026 tax law changes

The Washington Department of Revenue has published updated guidance, definitions, and industry-specific explanations outlining how precious metals transactions are now treated.

As with many tax law changes, the shift is largely administrative in nature, but it can still feel significant when it affects a category that was exempt for decades.

Why This Topic Is Getting Attention in 2026

The timing matters.

Because the change took effect at the beginning of 2026, it coincides with:

• A new tax year

• Updated sales tax tables

• Broader conversations about Washington’s evolving tax landscape

For residents and businesses alike, the repeal serves as a reminder that tax treatment is not static, even for asset classes that have historically been treated differently.