Buying gold in Chicago, IL
Illinois does not charge sales tax on qualifying gold bullion and coins. Jewelry is taxed at the 6.25% state rate plus any local tax. The combined state and local sales tax rate in Chicago is about 10.25%.
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 Chicago is tax, explained below and on the Illinois page.
Sales tax on gold in Chicago
Not on investment bullion. Legal-tender coins, currency, medallions, gold and silver coinage, and bullion of at least 98% (980/1000) purity are exempt. Taxable items include bullion below that purity, South African Krugerrands, coins issued by other U.S. states, palladium (per dealer guides), and jewelry. The combined state and local rate is about 10.25% here.
Full state rules: gold price and tax in Illinois.
Tax when you sell gold in Illinois
Profits on gold are generally taxed by Illinois like other investment gains, under its income tax rules. 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.
Selling gold or gold jewelry to a dealer in Illinois
- License: Pawnbrokers must hold a state license from the Illinois Department of Financial and Professional Regulation (IDFPR), Division of Banking (Pawnbroker Regulation Act of 2023, Sec. 5-1). The license and yearly renewal each cost $2,000, and no more than 250 licenses may be active statewide. The Act defines a pawnbroker as someone who lends on pledged goods or buys goods on condition that the seller can buy them back at a set price, so an outright gold buyer is not clearly covered. No statewide license for gold or precious metal buyers that are not pawnbrokers was found.
- Hold period: 10 days. Pawnbrokers may not sell, remove or move purchased goods for 10 days after the record copy is delivered to police; pledged goods cannot be redeemed for 48 hours after delivery (Sec. 15-50). Items with worn serial marks face a 15-day hold. Police hold orders on suspected stolen goods last 120 days unless extended. Home rule units may set longer holds but not shorter ones.
- What the dealer records: Record book approved by the county sheriff (or city police in Cook County) with an accurate item description and serial numbers, and for purchases the time and the seller's name and address (Sec. 15-25). A copy goes to the sheriff each day before noon, and also to the police chief in towns of 25,000 or more; electronic reports are allowed if police approve the format (Sec. 10-25). Records are kept 3 years.
- What sellers need: One photo ID (driver's license, state ID or consular ID) or two other IDs, one showing a home address. In cities over 1,000,000 people (Chicago), a customer without government photo ID is photographed in color and their details recorded. Local ID rules may be stricter but not looser. No purchases from anyone under 18 (Sec. 15-25, 15-35).
- Payment: No general cash or check rule for purchases. Pawnbrokers may not require customers to pay monthly charges by electronic fund transfer (Sec. 15-10(c)).
- Who is exempt: Purchases from dealers with a federal employer ID who give a receipt are exempt from the seller-detail record rule. Securities, printed evidence of debt or ownership, and title-secured loans are outside the Act.
- The law: Pawnbroker Regulation Act of 2023 (Public Act 103-0585, HB 779, signed March 22, 2024), which replaced and repealed the old Pawnbroker Regulation Act (205 ILCS 510). Key sections: 1-5 (definitions), 5-1 (license), 10-25 (records and daily police reports), 15-25 (record book and ID), 15-35 (minors), 15-50 (holding periods), 15-55 (police hold orders). The 2012 Precious Metal Purchasing Act bill (SB 3341) is not treated as law.
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.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.