California Precious Metals Sales Tax Guide

Introduction

For educational use only. Coins Online does not provide tax or legal advice. Always verify rules with your own advisor.

California’s sales tax rules for precious metals can be more complex than many collectors expect. In this guide you will learn how the key rule under California law distinguishes between tax-liable and exempt bullion and coin transactions, how our checkout system uses Avalara to apply those rules in real time, and what it means when you’re shipping to a California address. For a deeper understanding of how form and purity influence classification, see our articles on Gold Coins vs Gold Bars: What’s Better for Beginners and How to Buy Physical Gold: A Complete Beginner’s Guide.

What Is Non Taxable Today

Under California Department of Tax and Fee Administration (CDTFA) regulation Regulation 1599 coins and bullion may qualify for exemption when sold in “bulk.” Sales of monetized bullion, non-monetized gold or silver bullion, and numismatic coins are exempt if the transaction meets the threshold. National Coin & Bullion Association+3CDTFA+3CDTFA+3

Effective on and after July 1, 2023, the exemption threshold is $2,000 or more in a single transaction. CDTFA+2National Coin & Bullion Association+2
Examples of transactions that would qualify:

• A purchase of gold or silver bullion (or numismatic coins) with total market value $2,000 or more in one invoice.
• A dealer-to-registered-commodity-exchange transaction above the threshold.

What Remains Taxable

Unless the transaction meets the “bulk sale” criteria, the sale of coins or bullion to a retail customer in California remains subject to the state and local sales tax rate. BullionStar U.S.+1
Key taxable categories include:

• Sales under the threshold of $2,000 in a single transaction.
• Sales of non-monetized bullion in metals other than gold or silver, or items where value is derived from form, rarity or collectible status rather than metal content.
• Accessory items, processed items, or mixed-metal items not meeting bullion definition.

How Checkout Determines Your Result

At Coins Online our checkout uses Avalara’s tax-engine configuration for California:

• Product classification: bullion vs coin vs accessory.
• Shipping destination: California address triggers California rules.
• Transaction total: The system checks if the invoice meets the bulk-sale threshold ($2,000) for exemption.
  If all eligibility criteria are met, tax is not applied. Otherwise, standard state plus local sales tax is calculated.
  Retailers must retain documentation in compliance with California rule regulation 1599 for potential audits. CDTFA+1

Collector Takeaway

For California collectors the most important points are:

• The exemption is transaction-value based: in most retail contexts you’ll need a $2,000+ invoice for exemption.
• Falling short of that threshold means tax applies, even if the item is bullion.
• The classification of product form, metal content and purpose remains critical (i.e., bullion vs collectible coin).
• Using our checkout system aligned with Avalara and keeping clear records helps reduce surprises and supports long-term collecting.

Why California’s Rules Stand Out for Collectors

California’s threshold-based model differs markedly from states that exempt bullion by form or purity only. Because the exemption applies only when the sale qualifies as a “bulk sale,” many retail buyers find the rule less straightforward than states with blanket exemptions. However, that complexity also offers opportunity: by structuring the transaction properly (single invoice, qualifying item, $2,000+), collectors in California can obtain tax relief not available via simple exemptions elsewhere. The clarity of threshold and official guidance makes this state a key example for serious collectors considering multi-state holdings.

Resources for Further Learning

• California Regulation 1599 — “Coins and Bullion.” CDTFA+1
• California Revenue & Taxation Code § 6355 — Bulk Sales Exemption. CDTFA+1
• CDTFA Special Notice L-912 & L-906 — Threshold update to $2,000 as of July 1, 2023. CDTFA+1
• Collector Guide: Gold Coins vs Gold Bars: What’s Better for Beginners
• Collector Guide: How to Buy Physical Gold: A Complete Beginner’s Guide