Buying silver in Lexington, KY
Kentucky does not charge sales tax on qualifying silver bullion and coins. Jewelry is taxed at the 6% state rate plus any local tax. The combined state and local sales tax rate in Lexington is about 6%.
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 Lexington is tax, explained below and on the Kentucky page.
Sales tax on silver in Lexington
Not on investment bullion. Currency, coins and bullion have been exempt since Aug 1, 2024 (HB 8, 2024). HB 2 (2025), passed over a veto, confirmed the exemption retroactively and provided refunds. Jewelry and accessories remain taxable at 6%. The combined state and local rate is about 6% here.
Full state rules: silver price and tax in Kentucky.
Tax when you sell silver in Kentucky
Profits on silver are generally taxed by Kentucky 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 Kentucky
- License: No state license or registration for gold or precious metal buyers was found. Pawnbrokers are regulated under KRS Chapter 226, which requires a pawnbroker's bond (KRS 226.020); the bond details were not confirmed. Businesses that buy nonferrous metal (recyclers, junk or metal dealers and secondhand article dealers) must follow the purchase rules in KRS 433.920, but that law has no license.
- Hold period: 12 days. Pawnbrokers must hold secondhand goods they buy for at least 12 days before resale (KRS 226.040(2)). Under KRS 433.920, covered metal buyers keep items in original form, or as a photo or digital image, for 3 business days; if police suspect theft and do not seize the item, the hold runs another 30 days unless police release it. KRS 433.920 does not name gold, silver or jewelry, so whether it reaches gold buyers is not confirmed.
- What the dealer records: Pawnbrokers: a register of all loans and purchases from the public, with dates, amounts, the seller's name and ID number, and a full description of the goods (make, model, color, size, maker, vintage, marks). The register is reported to an online transaction service that police can reach, is open to police inspection at all times, and a photo must be given to police on request (KRS 226.040). No retention period is stated in that section. KRS 433.920 buyers: copy of the seller's photo ID, address, vehicle details, date and time, item description, weight and photo, and amount paid; entered in LeadsOnline within 2 days; kept 2 years.
- What sellers need: Pawnbrokers record a driver's license number or other state or federal photo ID number; a Social Security number may be accepted if neither is available (KRS 226.040). KRS 433.920 metal buyers may not buy from anyone under 18 or anyone who will not give ID, and need a signed ownership certificate for melted or smelted metal (KRS 433.920). KRS 226.030 limits pawnbrokers taking goods from minors.
- Who is exempt: KRS 433.920 does not apply to items bought, pawned or sold by pawnbrokers licensed under KRS Chapter 226, to single deals of $10 or less, to jewelry and household metal items sold at flea markets or yard sales, and to several other listed cases.
- The law: KRS Chapter 226 (Pawnbrokers), especially KRS 226.040 (register, online reporting, 12-day hold), as amended by 2018 Ky. Acts ch. 15 (HB 74). KRS 433.920 (duties of purchasers of metal; formerly KRS 433.890, renumbered by 2026 Ky. Acts ch. 182, effective April 14, 2026). No separate state precious metals dealer act was found.
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.