Buying gold in Alabama
Alabama does not charge sales tax on qualifying gold bullion and coins. Jewelry is taxed at the 4% state rate plus any local tax.
Gold has one national spot price in US dollars: the prices on this page are the same as on the gold price in the United States page. What differs in Alabama is tax, explained below.
Sales tax on gold in Alabama
Gold, silver, platinum and palladium bullion and coins of at least 80% purity sold by metal value are exempt from state sales/use tax; the exemption currently runs to June 1, 2028 (SB 13, 2022). Jewelry and collectible-priced items remain taxable.
Tax when you sell gold in Alabama
Gains on gold and silver are excluded from Alabama income tax (SB 297, signed 2024; applies from tax year 2025). At the federal level, the IRS treats bullion and most gold coins as collectibles: long-term gains (assets held more than a year) are taxed at your ordinary rate, capped at 28%, and short-term gains as ordinary income.
Gold and silver as money in Alabama
SB 130 (2025) reaffirms gold and silver as legal tender for voluntary transactions.
Selling gold or gold jewelry to a dealer in Alabama
- License: Dealers who buy gold or precious items to resell need a yearly state license ($100) and a yearly county license ($50) in each county where they do business, issued under the state business license law (Title 40, Chapter 12, Article 1). They may buy only at the permanent place of business named on the license and must send copies of the licenses to the local police chief or sheriff within five days.
- Hold period: 10 days. Items must be kept in the same condition and form for 10 calendar days after the purchase list is delivered to local law enforcement. Items may not be disposed of if police or the district attorney say they are proceeds of a crime.
- What the dealer records: Record the seller's name, address, date of birth, signature, physical description and ID number, plus a list of items. Keep records six months. In any week with a purchase, deliver a list to the local police chief or sheriff with item descriptions, serial numbers, date and time, and amount paid.
- What sellers need: Seller must show a valid photo ID with a serial number (driver's license, non-driver ID, military ID or similar). No purchases from anyone under 18 unless a parent or guardian is present and shows ID.
- Payment: Payment by check only, made out to the actual seller.
- Who is exempt: Manufacturers, retail merchants and wholesale businesses are not 'dealers'. The chapter does not apply to buying precious items from a retail merchant, manufacturer or wholesale dealer.
- The law: Code of Alabama 1975, Title 8, Chapter 34, Dealers in Gold or Precious Items (Sections 8-34-1 to 8-34-7), enacted by 2010 SB530.
Dealers report a customer's sale to the IRS on Form 1099-B only for certain forms and quantities, such as 1-kilo gold bars, 1,000 ounces of silver bars or 25 or more Krugerrands or Maple Leafs; American Eagles and smaller lots are generally not reported. Any business that receives more than $10,000 in cash in one transaction or related transactions files IRS Form 8300. Bring a photo ID when you sell.
What you pay over spot
Dealers sell Gold Eagles, Buffaloes, bars and rounds at a premium over the spot price shown here, which covers minting, shipping and the dealer's margin; small coins carry the biggest premiums. Jewelry adds design and labour. When you sell, dealers usually pay a little under spot for common bullion and the melt value, less a margin, for scrap.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.