Buying Gold and Silver in Hawaii

TAXES IN HAWAII

There is no sales tax as such in Hawaii. However, there is something known as a General Excise Tax, often shortened to GET. This is paid by the seller, not the buyer. However, the seller may reflect the paid tax in the prices charged. An additional tax is charged in other specific regions, often no more than 0.5%.

Federal Capital Gains Tax

Charged at a maximum of 28%, with the amount determined by your personal income, the Federal Capital Gains Tax is expected to be paid on precious metals, defined as “collectibles” in US tax law. This applies not just in Hawaii but to every state in the US and all individuals are to declare such gains in their tax reports.

Tax Free Precious Metals

Unfortunately, while there is no sales tax here, the General Excise Tax charged to sellers is often applied to the price of gold and silver bullion. This is because the margins are fine with these items, and sellers earn very small profits. The additional 4% charge applied by the government would represent a sizeable chunk of their profits, so they often add this tax to the price. This makes it very difficult to get “tax-free” precious metals. However, it’s all about margins, so if you buy in bulk and increase the seller’s margin, you might be able to get a discount, negotiating a deal that essentially removes the 4% or 4.5% GET.

 

Source: http://tax.hawaii.gov/geninfo/get/

ABOUT HAWAII

Although it is part of the United States, Hawaii is actually located in Oceania, off the coast of the main continent. It was the 50th state to join the union, and is a popular tourist attraction for residents of the 49 other states and tourists from around the world. A part of Polynesia, the Hawaiian population is predominately made up of direct descendants from the people that have inhabited this region for many centuries.

The Tourist State

Prized for its relaxed lifestyle, its clear beaches and beautiful scenery, Hawaii is an island paradise that attracts many tourists every year. It is particularly popular with residents of other states, as there are fewer restrictions and more availability where travel is concerned, and they also use the same currency. Hawaii is often considered to be one of the best places anywhere to go boating, surf, ride horses, and hike. There is also no shortage of gift shops and local merchandise, all of which serve to keep the tourist dollars flooding in.

 


Note: GoldBroker cannot provide tax, legal, or other advice, so if you are not sure about the taxation to your personal circumstances, we recommend that you seek independent advice from a qualified professional.

All of these texts were accurate at the time of writing, but tax laws are constantly changing and it’s not easy to keep track of those changes. Because of this, we can not be held responsible for any false or out-of-date information.