Located in the northeastern United States, the state of Massachusetts is part of New England, bordered by New York, Vermont, Rhode Island and New Hampshire. Massachusetts is one of the ten smallest states in the union, but it is also one of the 15 most populous and the 3rd most densely populated.
A large chunk of this population resides in the city of Boston, which is considered to be one of the biggest and richest cities in the US, and one that is renowned for its education, its healthcare and its business sectors. Massachusetts is home to iconic landmarks, it has a rich and significant history, and it is also where you will find everything from Harvard University to Plymouth (where the first settlers landed) and Fenway Park.
This is the heart of New England and the soul of America.
Sales Taxes in Massachusetts
There is a statewide sales tax of 6.25% in Massachusetts, and this is essentially the minimum rate across the state. This is because there are no additional local taxes on top of this, meaning that in some cases you might need to pay more than this. This sales tax applies to all precious metals, including gold and silver bullion and numismatic pieces, but there are exemptions and complications to this law, as is so often the case.
Buying Tax Free
There is a very accessible tax exemption in Massachusetts, allowing you to pick-up tax free precious metals just by purchasing more than $1,000 worth of them. This means that many investors are not affected by the sales tax, but smaller investors may need to save up in order to spend more than $1,000 to avoid the tax. This might be a lot of money for some, but when you consider that this amount will not even get you an ounce of gold, it puts it into perspective. Of course, numismatics and even silver bullion are often bought in small quantities and for smaller amounts, which can make things difficult, but in such cases investors are advised to save up and to bulk buy.
As we shall discover, the exemptions are not that straightforward as they do not apply to all forms of bullion. The law actually states that coins of numismatic or bullion value, as well as silver or gold legal tender, qualifies for this exemption. However, it does exclude some popular items.
Other Taxes & Things of Note
There are a few things that will also be taxed, even when more than $1,000 worth of them are purchased. These include paper currency, which is often considered an investment in line with numismatics, but is something that the state of Massachusetts seemingly do not recognise as an investment. The same applies to coins from Namibia and South Africa. You won’t find many popular coins from Namibia, of course, but one of the most popular gold coins in the world, the Krugerrand, comes from South Africa. This gold bullion coin is minted in pure gold and can be purchased from across the state and the country, but as there is always a tax attached to it, you have to ask yourself whether this is a viable purchase.
Palladium and platinum coins and bars also have sales tax added to them, with no exemptions regardless of the purity, the status or the quantity. This makes purchasing precious metals somewhat of a minefield in the state of Massachusetts, and you need to be very well informed if you are to avoid these taxes and get the best bang for your buck.
There is also a capital gain’s tax in this state, which means that you will be forced to handover a percentage of the profits you make from the sale of investments.