The U.S. Treasury Has Stopped Minting Pennies

Penny Elimination

The U.S. Treasury has stopped minting pennies, leading to potential shortages that may prevent retailers from giving exact change during cash transactions.

This change does not affect how sales tax is calculated. Retailers must continue to compute sales tax by multiplying the taxable price-the total amount of all taxable items in a single transaction-by the applicable tax rate, then rounding the tax to the nearest cent using standard rounding rules. If exact change cannot be made, retailers may round the total cash amount to the nearest nickel, but this does not affect the sales tax amount itself. Electronic payments such as credit, debit, or digital methods are not affected, since exact change is not required.

The Streamlined Sales Tax webpage offers additional guidance. Retailers should also be aware that other state or federal laws may affect their rounding policies, and they should consult legal counsel to determine any compliance requirements.