Idaho Eliminates Income Taxes on Gold and Silver, Cuts Overall Rates

On March 6th, Idaho officially ended state income taxation on gains from gold and silver transactions, as part of the largest tax relief initiative in state history—a sweeping reform that underscores Idaho’s commitment to sound monetary policy amid turbulent economic conditions.

House Bill 40, spearheaded by House Speaker Mike Moyle and reluctantly approved by Governor Brad Little, provides Idahoans with $253 million in income tax cuts, reducing the income tax rate significantly from 5.695% to 5.3%. Alongside this broad reduction, the bill specifically exempts capital gains and losses from sales of precious metal bullion and monetized bullion from state income taxation.

Idaho already exempted precious metal purchases from sales taxes; this latest move further strengthens Idaho’s position in aligning precious metals like gold and silver more closely with their historical status as constitutional forms of money.

The new exemption aligns Idaho with states adopting similar “sound money” policies, aiming to encourage financial stability amid nationwide economic uncertainty. Inflationary pressures remain high, exacerbated by escalating trade wars. In this volatile environment, gold has emerged as an economic buoy, reaching an all-time high of nearly $2,990 per ounce yesterday.

House Speaker Mike Moyle, the bill’s primary advocate, underscored the historical significance and constitutional legitimacy of gold and silver as forms of currency. His argument rests on the assertion that taxing gold and silver is inconsistent with the U.S. Constitution, which explicitly recognizes both metals as lawful forms of currency.

This is not Idaho’s first step toward monetary reform regarding precious metals. The state previously exempted gold and silver purchases from sales tax, and last year, Governor Little notably vetoed a bill that would have allowed Idaho’s State Treasurer to hold physical gold reserves as a safeguard against risks associated with state-held debt instruments. The veto was sharply criticized by advocates of fiscal conservatism and sound money.

These tax changes, introduced with emergency provisions, will retroactively apply starting January 1, 2025, further highlighting Idaho’s commitment to financial resilience amid uncertain economic forecasts.