After a record-breaking run that saw gold prices surge dramatically last year — resulting in one of the precious metal’s strongest years in decades — many precious metal investors are now sitting on substantial gains. The yellow metal hit numerous all-time highs throughout 2025, with the price uptick driven by everything from a solid mix of central bank demand to geopolitical uncertainty and inflationary trends, pushing prices up by thousands of dollars per ounce by year-end.

But while those impressive gold returns are certainly welcomed by investors, what’s important to point out is that they can come with an often-overlooked complication: Gold faces different — and often higher — tax treatment than traditional investments. And, that’s true whether you hold physical bullion like gold bars and coins, gold exchange-traded funds (ETFs) or gold mining stocks. Whatever your gold holdings are, the Internal Revenue Service (IRS) has specific rules that could significantly impact your bottom line.

In other words, as you prepare to file your 2025 tax return this spring, understanding how gold investments are taxed isn’t just helpful. It’s essential to avoid costly surprises and ensure you’re reporting correctly. So what exactly should investors know about gold and taxes this tax season? That’s what we’ll examine below.

Find out how to add gold and other precious metals to your portfolio now.

Gold and taxes: What investors need to remember this tax season

Here’s what you need to know in terms of gold investing when you’re filing your 2025 taxes:

Physical gold is taxed as a collectible, not a stock

Physical gold, such as gold coins and bars, is treated by the IRS as a collectible. That classification matters because long-term gains on collectibles are taxed at a maximum rate of 28%, not the 15% or 20% long-term capital gains rates many investors expect from stocks.

That means if you sold physical gold in 2025 for more than you paid for it, your tax rate could be higher than you planned for. And, that’s especially true if you’re in a lower income bracket and assume standard capital gains treatment would apply.

Start capitalizing on gold and silver’s latest price upticks today.

Short-term vs. long-term holding periods still apply

Just like stocks, how long you hold your gold investment matters. If you owned the gold for one year or less before selling, any gain is taxed as ordinary income at your marginal tax rate. If you held it for more than one year, the collectible capital gains rules kick in. That distinction can significantly change your tax bill, so knowing your purchase dates and keeping records matters.

Gold ETFs may be taxed differently than you expect

Some investors assume gold ETFs are taxed like stock ETFs, but that’s not always true. Many physically backed gold ETFs are also treated as collectibles for tax purposes, meaning the same 28% maximum long-term rate can apply. By contrast, gold mining stocks or mining-focused ETFs are typically taxed like regular equities. So, the structure of your gold investment, not just the metal itself, can change the tax outcome.

Losses on gold can be useful

If you sold gold at a loss in 2025, that loss may help offset capital gains from other investments. If your losses exceed your gains, you may be able to deduct up to $3,000 against ordinary income, with the rest carried forward. This is one area where gold functions much like other investments, but it’s often overlooked by investors who focus only on gains.

IRA-held gold follows different rules

Gold held inside a self-directed IRA isn’t taxed when it’s bought or sold within the account. Taxes are generally deferred until you take distributions, just like other traditional IRA assets. However, the rules around what qualifies as IRA-eligible gold are strict, and improper handling can trigger taxes and penalties. If you took distributions involving physical gold in 2025, that activity may be taxable in 2026.

Dealer reporting doesn’t determine your tax obligation

Some investors assume that if a dealer didn’t issue a tax form, there’s nothing to report. That’s a risky assumption, though. While certain large transactions may trigger reporting requirements for dealers, you are still responsible for reporting taxable gains, even if no form was issued. The IRS expects you to report income based on what actually happened, not just what shows up on a form.

Gifts and inherited gold are taxed differently

If you received gold as a gift, your cost basis is generally tied to the original owner’s purchase price, not the value when you received it. That can lead to larger taxable gains later. Inherited gold, on the other hand, usually benefits from a step-up in basis to its fair market value at the time of the original owner’s death, which can significantly reduce future capital gains taxes if you sell.

State taxes and sales taxes can still matter

While federal rules get most of the attention, state taxes shouldn’t be ignored. Some states tax capital gains differently, and sales tax rules on gold purchases vary widely by state. So, if you bought or sold gold across state lines in 2025, that may affect how transactions are taxed or reported.

The bottom line

Gold can play an important role in a diversified portfolio, but it comes with tax rules that don’t always align with what investors expect. As you prepare your 2025 return in 2026, taking time to review how your gold investments were structured and how they were sold can help you avoid surprises. And if your gold activity was significant, working with a tax professional who understands alternative assets may be one of the smartest investments you make this tax season.