Beginning Jan. 1, 2026, Washington state eliminated a decades-old exemption on the taxation of precious metals, ushering in a significant change for buyers, sellers, collectors and investors. For about 40 years, sales of precious metal bullion and monetized bullion were excluded from Washington’s retail sales and business and occupation tax rules. This change affects gold, silver, platinum, palladium and other refined metals, as well as coins made of precious metals that could previously be sold without that extra tax burden.
The legislative change came as part of a broader revenue bill passed during the 2025 session and codified under state law. Lawmakers and the Department of Revenue made clear in notice documents last fall that beginning in 2026, sales of precious metal bullion and monetized bullion would be subject to both the retailing classification of business and occupation (B&O) tax and the retail sales tax when sold to end customers. Under the new rules, dealers who sell to consumers must collect and remit the applicable local sales tax rate, which in many parts of the state can exceed ten percent when state and local rates are combined. Washington’s sales tax regime already imposes a base rate of 6.5 percent plus additional local levies, making total rates among the highest in the country.
The exemption’s history dates back to when state lawmakers decided that bullion and monetized bullion should be treated differently from ordinary goods. For decades, coin dealers and bullion buyers in Washington enjoyed a competitive edge compared with neighboring states that taxed such purchases. This was especially valuable for individuals who saw precious metals not only as collectibles but as a hedge against inflation or a store of value. Opponents of the recent change point to this history as part of why the repeal feels abrupt to many in the numismatics community.
Supporters in the legislature argued that repealing the exemption would broaden the state’s tax base and bring in new revenue. Lawmakers projected that the reform could generate an estimated tens of millions of dollars every two years, funds that would flow into general state revenue and help support education, infrastructure and other services. From their perspective, this was not a special tax on money, but rather an alignment of policy so that bullion is treated similarly to other goods sold in the state.
Business owners and collectors have voiced concerns. Some dealers worry that the added cost will push customers to Oregon or Idaho, where precious metals remain untaxed, hurting local coin shops and reducing the number of coin shows and related events. Owners have described the new tax as regressive and burdensome, especially in a market with thin margins. A group of dealers has formed associations urging lawmakers to reconsider or repeal the change.
Critics argue that taxing bullion, especially monetized bullion like American Silver Eagles and similar coins, is tantamount to taxing money itself. They cite the fact that American Silver Eagles are legal tender coins issued by the U.S. Mint and have a face value (one dollar) and argue that subjecting them to retail sales tax treats money as a taxable good. Some point to language in Article I, Section 10 of the U.S. Constitution, which restricts states from making items other than gold and silver as a form of currency.
Legal scholars, however, have noted that these arguments resemble broader tax protester positions historically advanced in the United States. Such positions are typically rejected in courts because they misconstrue constitutional text and longstanding interpretations of state taxing authority. Whether any formal lawsuit challenging Washington’s bullion tax will emerge remains unknown, but for now, the law stands, and Washington residents who buy precious metals will pay taxes on those purchases beginning this year, or make their way out of state to avoid them.
