Buying gold in South Dakota
South Dakota does not charge sales tax on qualifying gold bullion and coins. Jewelry is taxed at the 4.2% 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 South Dakota is tax, explained below.
Sales tax on gold in South Dakota
Coins, currency and bullion are exempt (SDCL 10-45-110). Bullion means gold, silver, platinum or palladium bars, ingots and commemorative medallions valued by content, and coins or currency qualify if they are or were legal tender. Jewelry is taxed at the 4.2% state rate plus any local sales tax.
Tax when you sell gold in South Dakota
No state personal income tax, so no state tax on bullion gains. 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 South Dakota
- License: No statewide license for gold, silver or jewelry buyers was found. Cities license them by ordinance. Rapid City Municipal Code chapter 5.36 requires a license for pawnbrokers, secondhand dealers and gems and precious metals dealers, with license fees and term, a fixed place of business, record-keeping, holding periods, police hold orders, prohibited transactions and rules for transient trade shows (amended by Ordinance 6213 in 2018). As reported in 2013, licensees must also have a computer with internet access and subscribe to the LeadsOnline database unless the police chief approves another system. Sioux Falls adopted a precious metal dealer ordinance in 2011.
- Hold period: No state hold found. Rapid City: a 5-day hold on goods was reported when the ordinance was adopted in 2013, with goods sold with a valid bill of sale exempt from the hold; the 2018 amendment (Ordinance 6213) revised the holding period sections (5.36.090, 5.36.100), so the current number of days is not confirmed. Sioux Falls (2011, as reported on a collector forum): 14 calendar days from when records reach police, and police holds of up to 45 days.
- What the dealer records: Rapid City: record-keeping and electronic reporting through LeadsOnline (2013 report). Sioux Falls (2011, as reported on a collector forum): date, amount paid, seller's name and address, driver's license or other government ID number; copies to the police chief within 7 days; coins may be described by count of each denomination.
- Who is exempt: Rapid City (2013 report): bullion and numismatic coins are specifically exempt, and the rules give wide room to coin dealers, including those at coin shows in the city.
- The law: No statewide statute found. Local examples: Rapid City Municipal Code chapter 5.36 (Pawnbrokers, Secondhand Dealers, and Gems and Precious Metals Dealers), sections 5.36.010-5.36.150; a 2011 Sioux Falls ordinance.
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.