AL Some exemptions Last reviewed: April 2026

Rules of Gold in Alabama

Sales-tax exempt since 2018 under SB 156; capital gains taxed as ordinary income; no state depository, reserves, or pension exposure to physical metals.

The six facts

Statute-level rules. Each fact is sourced; click through to the primary citation.

Exempt

Sales tax on bullion

Gold, silver, platinum, and palladium bullion and coins are fully exempt from Alabama sales and use tax. SB 156 (2018) established the exemption; SB 13 (2022) extended the sunset to May 31, 2028.

Source As of 2018-06-01 · high confidence

No

Recognized as legal tender

Alabama has not enacted a statute recognizing gold or silver coin or bullion as legal tender for payment of debts. No legal-tender legislation found in 2021–2026 records.

Source As of 2026-04-25 · medium confidence

Taxed

Capital gains on bullion

Alabama taxes gains on the sale of precious metals as ordinary income. No metals-specific exemption exists in Alabama Code Section 40-18-2; top marginal rate is currently 5%.

Source As of 2026-04-25 · medium confidence

No

State bullion depository

Alabama has not authorized a state bullion depository. No enabling legislation, operational facility, or study-phase initiative.

Source As of 2026-04-25 · medium confidence

No disclosure

State gold & silver reserves

Alabama State Treasurer reports do not disclose physical precious-metals holdings on the state balance sheet.

Source As of 2026-04-25 · medium confidence

No disclosure

Pension fund holdings

The Retirement Systems of Alabama (RSA) Comprehensive Annual Financial Reports do not disclose physical gold or silver holdings. Standard portfolios focus on equities, bonds, and alternatives.

Source As of 2026-04-25 · medium confidence

What this means for buyers

When you buy bullion in Alabama: investment-grade bullion is exempt from state sales tax. The exemption typically covers gold, silver, platinum, and palladium meeting standard investment-grade purity. Verify the exemption applies to your specific purchase — definitions and minimum-purity thresholds vary by statute.

When you sell or otherwise realize a gain: capital gains on bullion are taxed as ordinary income at Alabama’s state-tax rates, stacked on top of the federal 28% collectibles rate. This is a real drag on long-term holdings — consult a CPA before realizing a major position.

Mostly standard taxation; one carve-out worth knowing about. Confirm it covers your specific purchase before relying on it.

Coin & bullion dealers in Alabama

Verified retail dealers — sourced from state corporation registries, BBB, and trade associations.

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About this page. Legislative data captured by the Empirical Research Orchestrator. Each fact links to its primary source. State laws change — confirm material facts with your CPA or the state Department of Revenue before acting on a transaction. Fair Market Value does not provide legal or tax advice.

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