Platinum Tax Considerations for Investors
Investing in platinum can be a smart way to diversify your portfolio, but taxes play a big role in your returns. Like gold and silver, the IRS treats physical platinum bullion, coins, and bars as collectibles in the United States.[1] This means when you sell platinum for a profit, you face special capital gains rules that differ from stocks or regular assets.
Start with how capital gains work on physical platinum. If you hold it for more than one year, it’s a long-term gain taxed at your ordinary income rate, but capped at 28 percent.[1][2] For example, someone in a high tax bracket pays no more than 28 percent on those gains, even if their regular long-term rate tops out at 20 percent for other investments.[1] Hold it less than a year, and short-term gains get taxed at your full income tax rate, which could reach 37 percent.[1][2] Your exact bill depends on your total income and filing status. For 2026, single filers with income under $49,450 pay no capital gains tax on these, while married couples filing jointly have a $98,900 limit.[2]
Losses help too. If you sell platinum at a loss, you can use it to offset gains from other investments.[1][2] After that, you might deduct up to $3,000 against ordinary income.[2]
Sales tax adds another layer when buying physical platinum. It varies by state. In Virginia, no sales tax applies to bullion over $1,000.[3] Michigan skips state sales tax on platinum at 90 percent purity or higher.[3] But Vermont charges 6 percent state sales tax, and Washington hits buyers with 6.5 percent plus local taxes as of October 2025.[3] Massachusetts exempts purchases over $1,000, though local taxes may apply.[3] Always check your state’s rules, as local taxes often kick in even with state exemptions.[3]
Platinum stocks or ETFs follow standard stock tax rules, not collectible rates. Long-term gains max at 20 percent federally, plus possible 3.8 percent net investment income tax for high earners and state taxes.[1] Short-term gains hit your income rate up to 37 percent.[1]
A top way to handle taxes is through a Precious Metals IRA. Platinum qualifies if it’s 99.5 percent pure, along with certain bars or coins.[4] In a traditional IRA, you buy with pre-tax dollars, and gains grow tax-deferred until withdrawal, when they’re taxed as ordinary income.[2][5] A Roth IRA uses after-tax money, so qualified withdrawals in retirement come out tax-free.[2][4][5] You can mix platinum with gold, silver, and palladium in one IRA.[4] These accounts avoid the 28 percent collectible rate entirely.[2] Contribution limits apply: $7,000 yearly under age 50, $8,000 over 50.[7] Required minimum distributions start at age 73 for traditional IRAs, but Roth originals skip them.[4][7]
Early withdrawals before 59 and a half trigger income taxes plus a 10 percent penalty.[7] Storage must meet IRS rules, and not all dealers handle IRAs.[4]
Gifting platinum has its own rules, but focus on holding strategies to match your tax situation. Physical platinum suits hands-on investors okay with collectible taxes, while IRAs fit long-term savers eyeing tax breaks.
Sources
https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/tax-on-gold-silver-investments/
https://www.birchgold.com/blog/precious-metals/precious-metals-tax-guide/
https://blog.swissamerica.com/sales-tax-on-gold-and-silver-by-state/
https://moneymade.io/learn/articles/precious-metals-iras-guide/
https://www.horizontrust.com/your-guide-to-gold-ira-investing/
https://www.jmbullion.com/investing-guide/taxes-reporting-iras/gold-ira-vs-physical-gold/