Buying silver in Madison, WI
Wisconsin does not charge sales tax on qualifying silver bullion and coins. Jewelry is taxed at the 5% state rate plus any local tax. The combined state and local sales tax rate in Madison is about 5.5%.
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 Madison is tax, explained below and on the Wisconsin page.
Sales tax on silver in Madison
Not on investment bullion. Since March 22, 2024 (AB 29), coins, bars, rounds and sheets with at least 35% gold, silver, copper, platinum or palladium are exempt if marked with weight and purity or government-minted. SB 748 (signed March 2026) removed the buyer exemption-certificate requirement. Jewelry and art are taxable. The combined state and local rate is about 5.5% here.
Full state rules: silver price and tax in Wisconsin.
Tax when you sell silver in Wisconsin
Profits on silver are generally taxed by Wisconsin 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 Wisconsin
- License: Secondhand jewelry dealers, secondhand article dealers and pawnbrokers are licensed by the municipality of their main place of business (application to the clerk; local police run a 10-year criminal record check). Fees set in the statute: secondhand jewelry dealer $30, secondhand article dealer $27.50, pawnbroker $210 (plus a $500 bond), flea market mall $165. Licenses run 1 January to 31 December. Local ordinances may be stricter but not weaker.
- Hold period: 21 days. Secondhand jewelry dealers and secondhand article dealers hold items at least 21 days after purchase; pawnbrokers 30 days. Where an electronic report is required, the hold is 7 days after the report is filed (134.71(8)(d)3m). Items must be kept separate and not altered. Holds do not apply to US coins, any gold or silver coin, gold or silver bullion, or consigned items (134.71(8)(d)5).
- What the dealer records: Customer fills in and signs a transaction form in ink; dealer keeps the original and a duplicate at least 1 year after the transaction and makes it available to police within 24 hours of the purchase. Off-premises purchases need a record of the customer's name, address, date, time, place and item details plus a signed declaration of ownership. Police may inspect records.
- What sellers need: Seller must show an accepted photo ID (driver's license, state or county ID, military ID, passport, tribal ID and others), or any government ID plus a clear imprint of the right index finger. No dealings with minors unless a parent or guardian is present or gives written consent for that transaction. Seller signs the form.
- Who is exempt: Not a 'secondhand jewelry dealer' (134.71(1)(h)): auctioneers; sales at occasional garage, yard or estate sales and at gun, knife, gem or antique shows or conventions; transactions with a licensed secondhand jewelry dealer; smelters, refiners, assayers and manufacturers of precious metals or gems with no retail operation open to the public; returns or exchanges of new jewelry with the original seller; and jewelry given to a charity. Property held by a licensed wholesaler, retailer or secondhand dealer is not 'secondhand' (134.71(1)(f)). Holding periods do not apply to US coins, gold or silver coins, gold or silver bullion or consigned items, and record and hold rules do not apply to returns or exchanges of items bought from the same dealer (134.71(8)(f)).
- Jewelers: Retail jewelers have no blanket exemption: a jeweler that buys secondhand jewelry from the public needs a secondhand jewelry dealer license, but buying from licensed wholesalers, retailers or secondhand dealers is not a covered secondhand purchase.
- The law: Pawnbrokers, secondhand article dealers and secondhand jewelry dealers, Wis. Stat. 134.71.
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.