Sales Tax on Gold and Silver in Kentucky
Kentucky exempts currency and bullion from sales tax, including gold and silver bars and coins. Jewelry and collectibles stay taxable. Rule checked October 2026.
The short answer
Kentucky does not charge sales tax on the sale of currency or bullion. That exemption covers gold, silver, platinum and palladium bars, ingots and coins, and it has been in effect since August 1, 2024.
What counts as bullion in Kentucky
Bullion means bars, ingots or coins made of gold, silver, platinum, palladium, or a combination of those metals. The metal content determines whether an item is bullion, not its form. The item must also be, or have been, used as a medium of exchange, a security, or a commodity by any state, the U.S. government, or a foreign nation.
Currency is also exempt. That means coin or paper money that is or has been legal tender and is sold as a collectible.
There is no dollar threshold and no purity test. A single small coin and a large bar are treated the same way under the exemption.
What stays taxable
Jewelry is not covered. Medallions or coins made into pendants or other jewelry are excluded from the exemption. Cutlery, sterling silverware and other collectibles containing precious metal remain taxable even when they are bought as an investment.
The rule’s history
The exemption took effect August 1, 2024 under 2024 HB 8. A Governor’s line-item veto of the provision was ruled invalid. In 2025, HB 2 was passed over a veto on March 27, 2025. That law voids any instruction to keep taxing these sales and gives a refund right back to August 1, 2024. The exemption subsection was renumbered from (37) to (36) effective July 15, 2026.
Kentucky gold and silver tax treatment at a glance
| Item | Kentucky sales tax |
|---|---|
| Gold, silver, platinum, palladium bars and ingots | Exempt |
| Coins valued on metal content and used as a medium of exchange, security or commodity | Exempt |
| Currency sold as a collectible | Exempt |
| Jewelry, including coins made into pendants | Taxable |
| Cutlery, sterling silverware and other precious-metal collectibles | Taxable |
| Dollar threshold or purity test | None |
What buyers commonly get wrong
One common mistake is assuming the exemption covers anything made of precious metal. It does not. Jewelry, cutlery, sterling silverware and other collectibles stay taxable even if the buyer treats them as an investment.
Another is thinking a coin loses its exempt status simply because it is old or collectible. Currency that is or has been legal tender and is sold as a collectible is exempt.
A third is believing there is a minimum purchase amount or a purity requirement. Kentucky’s rule sets neither.
A fourth is overlooking the refund right. Because the 2025 law reaches back to August 1, 2024, tax charged on qualifying currency or bullion during that period may be refundable.
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 Kentucky Department of Revenue. The official sources are the Department’s Sales Tax Facts newsletter, the statute, and 2025 HB 2. For general background on how states treat these sales, see sales tax on gold.
For a specific situation, consult a tax professional or your own preparer.
Common questions
Does Kentucky charge sales tax on gold and silver bullion?
No. Kentucky exempts the sale of currency or bullion, which includes gold, silver, platinum and palladium bars, ingots and coins. The exemption has been in effect since August 1, 2024.
Is jewelry taxed in Kentucky if it contains gold or silver?
Yes. Jewelry stays taxable, and medallions or coins made into pendants or other jewelry are excluded from the exemption. Cutlery, sterling silverware and other precious-metal collectibles also remain taxable.
Is there a minimum purchase amount for the Kentucky bullion exemption?
No. Kentucky's rule sets no dollar threshold and no purity test. The exemption applies based on what the item is, not on how much it costs.
Can sales tax paid on bullion in Kentucky be refunded?
Yes. Under 2025 HB 2, which was passed over a veto on March 27, 2025, there is a refund right back to August 1, 2024 for tax that should not have been charged on qualifying currency or bullion.
Read next
- Sales Tax on Gold and Silver in Georgia Georgia exempts gold, silver and platinum bullion and coins or currency from sales tax. Jewelry and artwork are taxable. The coin exemption expires in 2029.
- Sales Tax on Gold and Silver in Maryland Maryland exempts precious metal bullion and coins from sales tax only when the sale price is greater than $1,000. Smaller purchases are taxable.
- Sales Tax on Gold and Silver in Minnesota Minnesota exempts only 99.9% precious metal bars and rounds from sales tax. Coins, jewelry, works of art and scrap metal remain taxable.
- When a Dealer Reports Your Sale: Two Obligations Dealer reporting and taxpayer reporting are different duties. The gain is reportable whether or not a form is issued, and the product list is specific.
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