Buying silver in Jersey City, NJ
New Jersey exempts some silver bullion and coin purchases from sales tax, but not all. Jewelry is taxed at the 6.625% state rate plus any local tax. The combined state and local sales tax rate in Jersey City is about 6.625%. Certified sellers in Jersey City's Urban Enterprise Zone may charge half the rate, 3.3125%.
Silver has one national spot price in US dollars: the prices on this page are the same as on the silver price in the United States page. What differs in Jersey City is tax, explained below and on the New Jersey page.
Sales tax on silver in Jersey City
Sometimes. Since Jan 1, 2025 (P.L. 2024, c. 64), investment metal bullion is exempt with no minimum. Investment coins are exempt only if each coin's fair market value is at least $1,000, so most 1 oz silver and fractional gold coins remain taxable at 6.625%. Jewelry is taxed at the 6.625% state rate plus any local tax. The combined state and local rate is about 6.625% here.
Full state rules: silver price and tax in New Jersey.
Tax when you sell silver in New Jersey
Profits on silver are generally taxed by New Jersey like other investment gains, under its income tax rules. At the federal level, the IRS treats bullion and most silver coins as collectibles: long-term gains (assets held more than a year) are taxed at your ordinary rate, capped at 28%, and short-term gains as ordinary income.
Selling silver or silver jewelry to a dealer in New Jersey
- License: No general state license found. Transient precious metal buyers must post a surety bond payable to the State, with 30 days' notice to the Office of Weights and Measures before cancellation (N.J.S.A. 51:6A-1(i)). Many towns license precious metal and secondhand dealers by ordinance (for example North Plainfield has a precious metal license application).
- Hold period: 10 days. Confirmed: secondhand jewelry dealers must keep used jewelry they buy for at least 10 business days after delivering the purchase record to the local police (2C:21-36(d) as amended by P.L.2013, c.247); a town ordinance in force before 16 January 2010 may require longer. The original 2009 act set 3 business days. Precious metals bought by bulk-value buyers must be kept in the form bought for at least 2 business days, minimum 48 hours (51:6A-1(g)).
- What the dealer records: Jewelry dealers: keep the seller's name, address and phone number, a descriptive list of items, digital photos and a photocopy of the seller's ID for 5 years, and deliver a copy of the past week's purchases to the local police weekly. Precious metal buyers: give a serialized receipt (buyer and seller names and addresses, date, metal, fineness, weight, price per standard measure, seller's signature), keep it at least 1 year, and keep digital photos of purchased metals at least 1 year; records open to police and weights and measures officials.
- What sellers need: Buyer must check a valid government-issued photo ID (2C:21-36(b); 51:6A-1(f)); the seller signs the precious metals receipt.
- Who is exempt: Used jewelry rules do not apply to licensed pawnbrokers, to sales made through an internet website, or to retailers whose main business is not jewelry sales and who buy used jewelry on no more than three days a calendar year. 51:6A-1 applies only to purchases from people not in the business of selling precious metals.
- Jewelers: Retail jewelers, wholesalers and smelters that buy used jewelry for resale are the main group covered by 2C:21-36 (records, weekly police reports, 10-business-day hold). Precious metal buyers must post their name, address and offered prices at the point of purchase, put their name and address in ads, and weigh metal in the seller's plain view on state-certified scales (51:6A-1).
- The law: Precious metals buyers: N.J.S.A. 51:6A-1 to 51:6A-3 (P.L.1981, c.96, amended by P.L.2013, c.247; enforced by the Office of Weights and Measures). Used jewelry: N.J.S.A. 2C:21-36 to 2C:21-38 (P.L.2009, c.214, amended by P.L.2013, c.247, effective 90 days after approval on 17 January 2014).
Dealers report a customer's sale to the IRS on Form 1099-B only for certain forms and quantities, such as 1-kilo gold bars, 1,000 ounces of silver bars or 25 or more Krugerrands or Maple Leafs; American Eagles and smaller lots are generally not reported. Any business that receives more than $10,000 in cash in one transaction or related transactions files IRS Form 8300. Bring a photo ID when you sell.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.