Sales Tax on Gold and Silver in Illinois

The short answer

Illinois does not charge sales tax on gold or silver bullion, or on legal tender, currency, medallions, or gold or silver coinage issued by the State of Illinois, the U.S. government, or any foreign government. There is no minimum purchase amount to qualify.

What the exemption covers

The Retailers’ Occupation Tax exemption at 35 ILCS 120/2-5(18) applies to gross receipts from sales of:

• legal tender and currency;
• medallions;
• gold or silver coinage issued by the State of Illinois, the U.S. government, or the government of any foreign country;
• bullion.

No dollar threshold applies, so a single coin and a large order are treated the same way. The Illinois Department of Revenue has also said the exemption still applies when the items have appreciated in value and become rare.

What does not qualify

Two categories fall outside the exemption:

• Coins or medallions issued by a government or entity that is not listed in the statute. That includes private mints and other states.
• Covered items that have been incorporated into jewelry. Once a coin or piece of bullion becomes part of a piece of jewelry, the exemption does not apply to that item.

The statute sections that were reviewed do not define “bullion” and do not set a purity test. Some dealer sites cite a .980 purity figure, but that figure does not appear in an official source. Buyers should not treat a purity number as the test for the exemption.

Local sales taxes

The sources reviewed do not address how local sales taxes apply to these transactions.

Illinois gold and silver tax treatment at a glance

What buyers commonly get wrong

A common mistake is assuming that any coin sold as an investment is exempt. The issuer matters. A coin or medallion from a private mint or from another state is taxable, even though a coin issued by the U.S. government or a foreign government is exempt.

Another common mistake is assuming that rarity or appreciation changes the result. The Illinois Department of Revenue has said the exemption applies even when the items have appreciated and become rare, so a collector premium does not create a tax.

A third mistake is treating jewelry as covered. When an exempt coin or piece of bullion is incorporated into jewelry, that item is taxable.

A fourth mistake is looking for a dollar threshold. Illinois does not set one for this exemption, so there is no minimum purchase that must be reached before the exemption applies.

Finally, some buyers rely on a purity figure that circulates on dealer sites. The statute sections reviewed do not define “bullion” or set a purity test, so a purity number should not be treated as the rule.

Checking the rule

The rule was checked in October 2026 and can change with new legislation. Before a large purchase, confirm the current treatment with the Illinois Department of Revenue. The official sources are the statute text, the administrative rule, the Illinois sales and use tax matrix, and the Department of Revenue letter ruling. For how these rules fit with federal treatment, see the general page on sales tax on gold. For a specific transaction, consult a tax professional or your own preparer.