For roughly 40 years, Washington residents could buy and sell gold, silver, and other precious metal bullion without paying retail sales tax. That era ended January 1, 2026, and the fallout is already reshaping the state's coin and bullion industry.
Under Engrossed Substitute Senate Bill 5794, passed during the 2025 legislative session, Washington repealed its long-standing sales and use tax exemption on precious metal and monetized bullion transactions, subjecting them to standard retail sales tax and Business and Occupation tax.

The practical impact is significant. Combined state and local tax rates typically range from about 7.5 to more than 10 percent, depending on the buyer's location, and the tax applies to online purchases made by Washington residents as well. To illustrate the scale, a single ounce of gold purchased at $4,375 now carries an additional $328 to $464 in taxes at the point of sale.

Customers looking to buy precious metal coins in Washington are increasingly taking their business out of state since the exemption ended. Some dealers say that shift was entirely predictable. "Think about it. If a dealer charges $4,500 for a one-ounce gold coin and the state wants $450 more for sales tax, do you think a Washington resident would be so stupid as to buy locally? No. He'll go out of state," Craig Rhyne, owner of Washington Gold Exchange, told KOMO News.

Rhyne isn't just watching customers leave. He said he is actively looking to move his entire business to Idaho. He is not alone. Redmond Rare Coins is part of the newly formed Washington Coin and Bullion Association, which is urging residents to contact state lawmakers and push for a repeal of the tax.

Beyond the immediate sticker shock, buyers are also shifting their strategies. Some consumers are evaluating whether out-of-state vault services in Oregon and Idaho offer both tax avoidance and geographic diversification benefits, though accessing stored metals becomes more complex. Sophisticated investors also front-loaded purchases throughout late 2025 to beat the January 1 implementation date, a pattern that typically produces a temporary demand spike followed by reduced activity as inventory levels normalize.

For dealers who stay in Washington, the B&O tax adds another layer of pressure. Dealers pay B&O tax on gross receipts, meaning the tax hits revenue at the top line rather than on profit, and when dealer margins get squeezed, the impact flows directly to customers.
Supporters in the legislature argued that repealing the exemption would broaden the state's tax base and generate new revenue for education, infrastructure, and other services. The bill projects approximately $148 million in new revenue.

Critics counter that the state may collect far less than projected if buyers and dealers simply take their transactions across state lines.There is one notable exception for sellers: no sales tax applies when an individual sells bullion back to a licensed dealer. The tax applies only on purchases, not on the act of selling.
Dealers and investors navigating the new rules can find guidance at the Washington Department of Revenue's website at dor.wa.gov.