Alabama

Alabama’s Gold & Silver Bullion Tax Laws

The state of Alabama doesn’t levy taxes on the sale of gold, silver, and platinum bullion nor does it tax capital gains. Alabama residents must still pay United States federal capital gains taxes, however.

Legislative Developments

• In 2019, Alabama stopped taxing sales of gold, silver, platinum, and palladium bullion.
• In 2022, Alabama passed Senate Bill 13, which expanded the state’s bullion sales tax exemption including clarifying that the exemption covers all common forms of bullion, eliminates onerous reporting requirements, and extends the sales tax exemption until 2028.
• In 2024, Alabama passed Senate Bill 297, which stopped taxing capital gains on precious metals bullion.

State Information

• Alabama is in the Southern United States and is bordered by Mississippi, Tennessee, Georgia, and Florida.
• In 1819, Alabama became the 22nd state in the United States.
• The capital of Alabama is Montgomery. Other cities include Birmingham and Huntsville.
• Alabama had a population of 5,024,279 in 2020.
• Alabama’s real gross domestic product (GDP) was $241.75 billion in 2023, while the median household income was $55,000 in 2020.
• Alabama’s economy was based on agriculture for much of its history, but has diversified into aerospace, education, health care, banking, and various heavy industries, including automobile manufacturing, mineral extraction, steel production and fabrication in recent decades.

Economic and Personal Freedom Information

• Alabama ranks #28 on the Sound Money Index that ranks states based on their friendliness toward gold and silver bullion.
• According to the Freedom in the 50 States report, Alabama ranks #30 in overall freedom, #28 in economic freedom, and #42 in personal freedom.
• Alabama ranks #20 on the Rich States, Poor States index, which evaluates states based on economic competitiveness by considering tax and regulatory burdens, as well as labor policies.