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Alabama Tax Advantage
Buy Gold & Silver Tax-Free in Alabama
Alabama has eliminated two layers of taxation on precious metals that most investors never think about. Here's everything you need to know before you buy.
✓ No Sales Tax Through 5/31/2028
✓ No State Capital Gains Tax
Alabama's Dual Tax Advantage
Two Tax Exemptions. One Local Dealer.
Alabama investors are sitting in one of the most favorable precious metals environments in the country. Most states have eliminated one of these taxes. Alabama has eliminated both.
No Sales Tax on Bullion
Under Alabama Rule 810-6-2-.27, qualifying gold, silver, platinum, and palladium are exempt from state sales and use tax through May 31, 2028. When you buy qualifying bullion from McFarland Metals, you pay the spot-based price — nothing added for Alabama sales tax.
No State Capital Gains Tax
As of January 1, 2025, Alabama investors who sell gold or silver bullion can deduct any net capital gain from their state taxable income. Profits reported on your federal return are excluded from your Alabama adjusted gross income entirely. Federal taxes still apply — but Alabama's own layer is gone.
What Qualifies
Exempt vs. Taxable — Know Before You Buy
Use this reference to confirm your intended purchase qualifies for Alabama's exemption.
| ✅ Exempt from Alabama Tax (0%) | ❌ Subject to Standard Tax Rates |
|---|---|
|
Exempt Gold, silver, platinum, and palladium bars, ingots, and rounds |
Taxable Jewelry, decorative gold items, and works of art |
|
Exempt U.S. Mint coins — Gold Eagles, Silver Eagles, Silver Maples, etc. |
Taxable Storage accessories: coin flips, tubes, cases, and safes |
|
Exempt Bullion valued by its weight and metal content — not its form |
Taxable Collectibles where numismatic value exceeds metal content |
|
Exempt Items meeting the 90% minimum precious metal purity threshold |
Taxable Low-purity items where precious metal is not the primary value driver |
The Purity Rule: To qualify for Alabama's exemption, an item must be refined, must contain at least 90% gold, silver, platinum, or palladium, and its price must be based on the underlying metal's market value — not on rarity, condition, age, or collector demand. Most standard investment-grade bars and coins qualify easily.
Why Buy Local
What a Local Dealer Does Differently
Large national retailers like APMEX or JM Bullion are enrolled in Alabama's Simplified Sellers Use Tax (SSUT) program, which means they collect and remit use tax on certain transactions automatically at checkout — even on products that may qualify for Alabama's bullion exemption. Buying directly from McFarland Metals means working with someone who knows exactly which products qualify.
$0
Alabama Sales Tax
On qualifying bullion purchases. No surprise line items at checkout.
0%
State Capital Gains
When you sell. Alabama removed its own layer as of January 1, 2025.
1
Local Expert
A real conversation about your goals — not a call center or a FAQ page.
Alabama Sound Money Laws
Gold & Silver Are Now Legal Tender in Alabama
In April 2025, Governor Kay Ivey signed the Alabama Legal Tender Act (SB130), effective October 1, 2025. The law officially recognizes gold and silver coins, bullion, and refined precious metals as legal tender in the state, and allows contracts to specify payment in gold or silver.
This marks Alabama's third major sound money law since 2018. Between the sales tax exemption, the capital gains elimination, and legal tender status, Alabama has positioned itself as one of the most metal-friendly states in the nation.
2018 — Sales Tax Exemption Enacted
2022 — Exemption Extended to 2028
2025 — Capital Gains Tax Eliminated
2025 — Gold & Silver Named Legal Tender
Ready to Buy Tax-Free?
McFarland Metals carries investment-grade bullion with Alabama's exemption requirements built into every product we stock.
This page is for informational purposes only and does not constitute tax or legal advice. Consult a qualified tax professional regarding your individual situation. McFarland Metals is a division of Buffex LLC.