KY No exemptions Last reviewed: April 2026

Rules of Gold in Kentucky

What this means for me Coin & bullion dealers 4

The six facts

Statute-level rules. Each fact is sourced; click through to the primary citation.

Bullion exempt

Sales tax on bullion

KRS 139.480(37), effective August 1, 2024, exempts sales of currency or bullion from Kentucky sales and use tax. "Bullion" is defined as bars, ingots, or coins of gold, silver, platinum, palladium, or a combination, where value depends on metal content rather than form. The exemption was enacted via HB 8 (2024 RS), originally Senate Bill 105. Implementation controversy: Gov. Andy Beshear issued a line-item veto on the bullion exemption portion of HB 8; the Kentucky Constitution permits line-item vetoes only on appropriations measures (not revenue bills), and AG Russell Coleman issued an opinion that the veto was invalid. The House did not call an override vote — the Speaker forwarded HB 8 to the Secretary of State as having become law without the governor's signature, taking effect Aug 1, 2024. Despite this, Beshear publicly stated the DoR would continue to collect sales tax on gold/silver. The DoR's own published "Instructions on Refunds for Sales and Use Tax Paid for Purchases of Bullion and Collectible Currency" treats the exemption as effective. Operator should flag this active implementation dispute on public-site copy.

Source As of 2024-08-01 · high confidence

Recognized as legal tender

Kentucky has not enacted a statute recognizing gold or silver coin or specie as legal tender for payment of debts within the state. HB 405 (2016) attempted this and did not pass. Three measures were introduced in the 2026 Regular Session — SB 32, SB 99, and SB 189 — relating to gold and silver legal-tender recognition and/or state bullion depository authorization, but their final disposition was not pinned in this research pass. Kentucky remains absent from the seven-state legal-tender list as of 2026.

Source As of 2026-04-26 · medium confidence

Taxed

Capital gains on bullion

Kentucky levies a flat individual income tax on capital gains — 4.0% for tax year 2025, scheduled to drop to 3.5% effective January 1, 2026 per HB 1 (2025 RS). There is no preferential capital-gains rate, no precious-metals carve-out, and no exclusion for long-term gains. Capital gains on physical gold and silver are taxed at the flat rate alongside ordinary income.

Source As of 2025-01-01 · high confidence

State bullion depository

Kentucky has not enacted enabling legislation for a state-administered bullion depository. Bills introduced in the 2026 Regular Session (SB 32, SB 99, SB 189) include depository-authorization provisions and remain pending. Note: the United States Bullion Depository at Fort Knox is located in Kentucky but is a federal facility (operated by the US Mint, holding ~147.3 million fine troy ounces of gold) and is not a state-administered or state-chartered facility — Kentucky's status under this field tracks only state-level authorizations.

Source As of 2026-04-26 · medium confidence

State gold & silver reserves

The Kentucky State Treasurer does not hold physical gold or silver as a reserve asset on the state balance sheet. State financial statements do not disclose any precious-metals line item, and no statutory authorization for such holdings is in force.

Source As of 2026-04-26 · medium confidence

Pension fund holdings

The Kentucky Public Pensions Authority (KPPA), formerly Kentucky Retirement Systems (KRS), administers defined-benefit pension and insurance plans for approximately 444,000 state and local government employees, state police, and nonteaching staff of local school boards and regional universities. KPPA's investment program follows a standard institutional asset allocation across public equities, fixed income, alternatives, and real estate; no precious-metals or commodities line item appears in published investment holdings disclosures.

Source As of 2024-06-30 · medium confidence

What this means for buyers

When you buy bullion in Kentucky: investment-grade bullion is exempt from state sales tax. The exemption typically covers gold, silver, platinum, and palladium meeting standard investment-grade purity. Verify the exemption applies to your specific purchase — definitions and minimum-purity thresholds vary by statute.

When you sell or otherwise realize a gain: capital gains on bullion are taxed as ordinary income at Kentucky’s state-tax rates, stacked on top of the federal 28% collectibles rate. This is a real drag on long-term holdings — consult a CPA before realizing a major position.

Mostly standard taxation; one carve-out worth knowing about. Confirm it covers your specific purchase before relying on it.

Coin & bullion dealers in Kentucky

Verified retail dealers — sourced from state corporation registries, BBB, and trade associations.

Full directory

A-Plus Coins

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Bruner’s Collectables

Operating since 1964

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Cherokee Coins

Operating since 1980
PCGS Authorized, NGC Authorized

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Heartland Coins

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About this page. Legislative data captured by the Empirical Research Orchestrator. Each fact links to its primary source. State laws change — confirm material facts with your CPA or the state Department of Revenue before acting on a transaction. Fair Market Value does not provide legal or tax advice.

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