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Penny rounding rules in all 50 states
As of September 26, 2026, 16 states have a rounding law in effect for cash sales, one more has passed a law that starts later, and several have issued guidance instead. Nearly every law uses the same rule: totals ending in 1, 2, 6 or 7 cents round down to the nearest 5 cents, and totals ending in 3, 4, 8 or 9 round up. Only cash is rounded.
| State | Status | Law or bill | Effective | In short |
|---|---|---|---|---|
| Alabama | Rounding law in effect | HB 545 (Act 2026-548) | April 17, 2026 | Businesses may round the cash total or the change to the nearest 5¢. |
| Alaska | No state rule yet | — | — | No state rounding law or guidance found. |
| Arizona | Rounding law in effect | HB 2938 | March 12, 2026 | Businesses without pennies at the register must round cash totals to the nearest 5¢. |
| Arkansas | No state rule yet | — | — | No state rounding law or guidance found. |
| California | Bill pending | AB 1793 | Would apply from July 1, 2027 | Passed the Legislature and was presented to the governor on August 28, 2026. |
| Colorado | Guidance only | — | — | State guidance only; no rounding law. |
| Connecticut | Law passed, starts later | HB 5349 (Public Act 26-128) | January 1, 2027 | The new law adds a penny-rounding exception to Connecticut's cash-acceptance law. |
| Delaware | No state rule yet | — | — | No state rounding law or guidance found. A 2026 legislative issue brief studied the effects of losing the penny. |
| District of Columbia | No state rule yet | — | — | No rounding law. D.C. has a cash-acceptance law, and Holland & Knight flags it as a place where rounding up could conflict with it. |
| Florida | Rounding law in effect | SB 1074 (Ch. 2026-68) | May 11, 2026 | Dealers may round cash payments to the nearest 5¢. |
| Georgia | Rounding law in effect | HB 1112 | — | In-person cash totals round to the nearest 5¢: 1, 2, 6, 7 down; 3, 4, 8, 9 up. |
| Hawaii | Rounding law in effect | SB 3255 | — | Sellers round the total cash amount, including taxes and fees, to the nearest 5¢. |
| Idaho | Rounding law in effect | S 1350 (Ch. 241) | July 1, 2026 | Sets cash rounding rules for businesses. Signed March 31, 2026. |
| Illinois | No state rule yet | — | — | No state rounding law or guidance found. |
| Indiana | Rounding law in effect | SB 243 | March 6, 2026 | Retailers may round cash totals, including tax, to the nearest 5¢. |
| Iowa | Guidance only | — | — | Revenue department sales tax guidance only; no rounding law. |
| Kansas | No state rule yet | — | — | No state rounding law or guidance found. |
| Kentucky | Rounding law in effect | HB 757 (Acts Ch. 161) | — | Part of the 2026 revenue bill: cash transactions round to the nearest 5¢ when pennies aren't available. |
| Louisiana | No state rule yet | — | — | No rounding law. A House resolution (HR 252) asks the attorney general to study the effects of the penny's end. |
| Maine | No state rule yet | — | — | No state rounding law or guidance found. |
| Maryland | Rounding law in effect | SB 893 | May 12, 2026 | Merchants may round the total or the change, but not both. |
| Massachusetts | Guidance only | — | — | Revenue directive on sales tax only; a rounding bill (H 5450) has been filed. |
| Michigan | Guidance only | — | — | Treasury notice only; a bill (SB 1014) that would have businesses round cash totals down is pending. |
| Minnesota | Government payments only | HF 4591 (Ch. 119) | May 28, 2026 | Rounding rules for cash payments to and from state agencies (1, 2, 6, 7 down; 3, 4, 8, 9 up). |
| Mississippi | No state rule yet | — | — | No rounding law. Bills were filed in 2026. |
| Missouri | Rounding law in effect | HB 2819 | August 28, 2026 | Businesses may round cash totals to the nearest 5¢: 1, 2, 6, 7 down; 3, 4, 8, 9 up. |
| Montana | No state rule yet | — | — | No state rounding law or guidance found. |
| Nebraska | Rounding law in effect | LB 838 | — | Sellers (and employers paying cash wages) may round cash amounts to the nearest 5¢. |
| Nevada | No state rule yet | — | — | No state rounding law or guidance found. |
| New Hampshire | No state rule yet | — | — | No state rounding law or guidance found. |
| New Jersey | Guidance only | — | — | Treasury and Consumer Affairs guidance only; a bill (S 3977) is pending. |
| New Mexico | Government payments only | HB 291 | July 1, 2026 | Lets the tax department, Motor Vehicle Division and county treasurers round cash payments to the nearest 5¢. |
| New York | Bill pending | A 9274A / S 8580 | Would apply 180 days after signing | Passed both houses (Senate vote June 3, 2026); awaiting the governor. |
| North Carolina | Guidance only | — | — | Revenue directive on sales tax only (Directive 26-1): tax is due on the full amount before rounding. |
| North Dakota | No state rule yet | — | — | No state rounding law or guidance found. |
| Ohio | Bill pending | HB 737 | — | A bill to round cash payments to the nearest 5¢ is pending. |
| Oklahoma | Government payments only | HB 3075 | November 1, 2026 (state agencies); July 1, 2027 (cities and counties) | Rounding rules for cash payments to government only. |
| Oregon | Rounding law in effect | HB 4178 (Ch. 126) | April 7, 2026 | Businesses may adopt a rounding policy for in-person cash sales, applied consistently. |
| Pennsylvania | Bill pending | HB 2388 | — | Passed the House on June 25, 2026; now in the Senate. |
| Rhode Island | No state rule yet | — | — | No state rounding law or guidance found. |
| South Carolina | Guidance only | — | — | Revenue department guidance only; a bill (H 4617) was filed. |
| South Dakota | Guidance only | — | — | Revenue department guidance only. |
| Tennessee | Rounding law in effect | HB 1744 / SB 1810 | — | Lets businesses round cash totals when exact change isn't available: 1, 2, 6, 7 down; 3, 4, 8, 9 up. |
| Texas | Guidance only | — | — | Comptroller guidance on sales tax only; no rounding law. |
| Utah | Guidance only | — | — | Department of Commerce business guide and a state-agency policy; no rounding law for stores. |
| Vermont | Rounding law in effect | S.327 (Act 128) | — | Businesses may round the final cash amount, including taxes and fees, to the nearest 5¢. |
| Virginia | Rounding law in effect | HB 954 | July 1, 2026 | Sets the standard way to round cash sales: 1, 2, 6, 7 down; 3, 4, 8, 9 up. |
| Washington | Rounding law in effect | SHB 2334 | June 2026 | Retailers may round in-person cash totals to the nearest 5¢; for mixed payments only the cash part is rounded. |
| West Virginia | No state rule yet | — | — | No rounding law. Bills were filed in 2026. |
| Wisconsin | Guidance only | — | — | State agency guidance only; no rounding law. |
| Wyoming | No state rule yet | — | — | No state rounding law or guidance found. |
Is there a federal penny rounding law?
The Common Cents Act (H.R. 10167) passed the U.S. House on September 14, 2026 and was sent to the Senate on September 15. It would let businesses round cash totals to the nearest 5 cents (1, 2, 6, 7 down; 3, 4, 8, 9 up), cash only. The Senate passed its own version in August, so the two chambers still have to agree. It was not law when this page was reviewed.
Sources: GovInfo – H.R. 10167 (referred in Senate) · The Shelby Report – House passes penny-rounding bill (Sept 17, 2026)
Cities with their own cash rules
Some cities require businesses to accept cash and bar charging cash customers more than card customers. Rounding a cash total up can clash with those rules. Holland & Knight flags Miami-Dade County, Miami, New York City, Philadelphia, San Francisco, Detroit and Washington, D.C. as places to check carefully. Philadelphia and D.C. enforce theirs through consumer protection laws that let customers sue. Washington State's law overrides local rules; most others don't say.
Rounding down, or giving exact change when you have pennies, avoids the problem.
What businesses should do
- Check your state's row above and open its source. If your state has a law, follow its method, which is usually nearest 5¢ (symmetrical).
- Round only the final cash total, after tax. Keep charging cards the exact amount, and keep figuring and reporting sales tax on the exact amount.
- Post a sign at the register. Arizona, Oregon and Vermont require a notice; everywhere else it saves arguments. Make one with the Penny Rounding Sign Generator.
- Train staff with a printed penny rounding chart, and check totals with the Penny Rounding Calculator.
- Where there's no law, rounding down is the low-risk choice until your state acts.
This is general information, not legal or tax advice. Laws are changing quickly; confirm with your state revenue department or a lawyer.
State-by-state details
Open a state to see its law, effective date and sources.
AlabamaRounding law in effect
- Businesses may round the cash total or the change to the nearest 5¢.
- Cash only; card, check and gift card payments are exact.
- Sales tax is unchanged by rounding.
Source: Alabama Department of Revenue – In-person cash transactions
AlaskaNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
ArizonaRounding law in effect
- Businesses without pennies at the register must round cash totals to the nearest 5¢.
- A notice must be posted: “Cash transactions are rounded to the nearest five-cent increment pursuant to state law.”
- Tax is reported on the amount before rounding.
Source: Arizona Department of Revenue – Cash Transaction Rounding Law
ArkansasNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
CaliforniaBill pending
- Passed the Legislature and was presented to the governor on August 28, 2026.
- Would require merchants to round cash prices to the nearest 5¢; taxes and fees are figured before rounding.
ColoradoGuidance only
- State guidance only; no rounding law.
Source: Colorado Office of the State Controller – Cash transaction rounding · Holland & Knight (Aug 2026)
ConnecticutLaw passed, starts later
- The new law adds a penny-rounding exception to Connecticut's cash-acceptance law.
- Until it takes effect, the Department of Consumer Protection says businesses short of pennies should round cash totals down, not up.
Source: Public Act 26-128 (HB 5349) · CT Department of Consumer Protection – Change for cash payments
DelawareNo state rule yet
- No state rounding law or guidance found. A 2026 legislative issue brief studied the effects of losing the penny.
Source: Delaware Legislative Council – Consequences of eliminating the penny
District of ColumbiaNo state rule yet
- No rounding law. D.C. has a cash-acceptance law, and Holland & Knight flags it as a place where rounding up could conflict with it.
Source: Holland & Knight (Aug 2026)
FloridaRounding law in effect
- Dealers may round cash payments to the nearest 5¢.
- Rounding this way is not a deceptive or unfair trade practice.
- Local rules such as Miami-Dade's cash rule still deserve a check.
Source: Florida Senate – SB 1074 (2026)
GeorgiaRounding law in effect
- In-person cash totals round to the nearest 5¢: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
- Card payments are exact.
Source: Governor of Georgia – 2026 signed legislation · The Current GA – Georgia passes bill to round cash purchases
HawaiiRounding law in effect
- Sellers round the total cash amount, including taxes and fees, to the nearest 5¢.
- Card payments are exact.
IdahoRounding law in effect
- Sets cash rounding rules for businesses. Signed March 31, 2026.
IllinoisNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
IndianaRounding law in effect
- Retailers may round cash totals, including tax, to the nearest 5¢.
- The full tax is still owed; rounding gains or losses count as the retailer's income.
Source: Indiana Department of Revenue – Penny rounding for retailers
IowaGuidance only
- Revenue department sales tax guidance only; no rounding law.
Source: Holland & Knight (Aug 2026)
KansasNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
KentuckyRounding law in effect
- Part of the 2026 revenue bill: cash transactions round to the nearest 5¢ when pennies aren't available.
- Retailers still owe the correct sales tax.
Source: LegiScan – Kentucky HB 757 (2026) · Kentucky League of Cities – Revenue bill summary
LouisianaNo state rule yet
- No rounding law. A House resolution (HR 252) asks the attorney general to study the effects of the penny's end.
Source: CSG South – Penny elimination
MaineNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
MarylandRounding law in effect
- Merchants may round the total or the change, but not both.
- Sales tax is figured on the price before rounding.
Source: Comptroller of Maryland – Tax alert: penny shortage and rounding · Conduit Street – MD authorizes cash transaction rounding
MassachusettsGuidance only
- Revenue directive on sales tax only; a rounding bill (H 5450) has been filed.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
MichiganGuidance only
- Treasury notice only; a bill (SB 1014) that would have businesses round cash totals down is pending.
Source: Holland & Knight (Aug 2026)
MinnesotaGovernment payments only
- Rounding rules for cash payments to and from state agencies (1, 2, 6, 7 down; 3, 4, 8, 9 up).
- No state rule for private stores.
MississippiNo state rule yet
- No rounding law. Bills were filed in 2026.
Source: CSG South – Penny elimination
MissouriRounding law in effect
- Businesses may round cash totals to the nearest 5¢: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
- Card payments are exact.
Source: KY3 – Missouri law lets businesses round cash totals
MontanaNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
NebraskaRounding law in effect
- Sellers (and employers paying cash wages) may round cash amounts to the nearest 5¢.
- Totals of 1 or 2 cents round up to 5¢.
- Cash only.
Source: Nebraska Revised Statute 58-103
NevadaNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
New HampshireNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
New JerseyGuidance only
- Treasury and Consumer Affairs guidance only; a bill (S 3977) is pending.
Source: Holland & Knight (Aug 2026)
New MexicoGovernment payments only
- Lets the tax department, Motor Vehicle Division and county treasurers round cash payments to the nearest 5¢.
- No state rule for private stores.
New YorkBill pending
- Passed both houses (Senate vote June 3, 2026); awaiting the governor.
- Would require in-person merchants to round cash totals: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
- New York City has its own cash-acceptance law to check.
Source: NY Senate – Assembly Bill A9274A
North CarolinaGuidance only
- Revenue directive on sales tax only (Directive 26-1): tax is due on the full amount before rounding.
North DakotaNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
OhioBill pending
- A bill to round cash payments to the nearest 5¢ is pending.
OklahomaGovernment payments only
- Rounding rules for cash payments to government only.
- No state rule for private stores; the Tax Commission has sales tax guidance.
Source: Oklahoma House – ‘Common Cents’ now law · Oklahoma Tax Commission – End of penny production
OregonRounding law in effect
- Businesses may adopt a rounding policy for in-person cash sales, applied consistently.
- The policy must be posted, and customers paying exact change pay the exact amount.
- Adds an exception to Oregon's cash-acceptance law.
Source: Oregon Legislature – Enrolled HB 4178 · Oregon Capital Chronicle
PennsylvaniaBill pending
- Passed the House on June 25, 2026; now in the Senate.
- Would round in-person cash totals: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
- Philadelphia has its own cash-acceptance law and tax guidance.
Rhode IslandNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
South CarolinaGuidance only
- Revenue department guidance only; a bill (H 4617) was filed.
Source: Holland & Knight (Aug 2026)
South DakotaGuidance only
- Revenue department guidance only.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
TennesseeRounding law in effect
- Lets businesses round cash totals when exact change isn't available: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
- Sales tax is still reported to the penny.
Source: Tennessee General Assembly – HB 1744 · Tennessee House Republican Caucus – cash-rounding framework
TexasGuidance only
- Comptroller guidance on sales tax only; no rounding law.
Source: Holland & Knight (Aug 2026)
UtahGuidance only
- Department of Commerce business guide and a state-agency policy; no rounding law for stores.
Source: Utah Department of Commerce – Business guide to cash rounding
VermontRounding law in effect
- Businesses may round the final cash amount, including taxes and fees, to the nearest 5¢.
- Businesses that round must post the state-created notice at the register or entrance.
Source: NFIB – New Vermont law tackles cash sale penny problem · Vermont JFO – S.327 (Act 128) as enacted
VirginiaRounding law in effect
- Sets the standard way to round cash sales: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
- Taxes, fees and charges are figured before rounding.
- Sellers who follow it aren't in violation of other state or local rules.
WashingtonRounding law in effect
- Retailers may round in-person cash totals to the nearest 5¢; for mixed payments only the cash part is rounded.
- Rounding is a statewide matter, so it overrides local rules.
- Rounding doesn't violate the Consumer Protection Act.
Source: Washington Legislature – HB 2334 · Washington State Standard – Ferguson signs penny bill
West VirginiaNo state rule yet
- No rounding law. Bills were filed in 2026.
Source: CSG South – Penny elimination
WisconsinGuidance only
- State agency guidance only; no rounding law.
Source: Holland & Knight (Aug 2026)
WyomingNo state rule yet
- No state rounding law or guidance found.
Source: Avalara – state-by-state rounding rules (updated Sept 23, 2026)
Penny rounding laws FAQ
Which states have penny rounding laws?
As of September 26, 2026, 16 states have rounding laws in effect for cash sales: Alabama, Arizona, Florida, Georgia, Hawaii, Idaho, Indiana, Kentucky, Maryland, Missouri, Nebraska, Oregon, Tennessee, Vermont, Virginia and Washington. Connecticut's law takes effect January 1, 2027. Minnesota, New Mexico and Oklahoma have rules only for payments to government.
Is there a federal penny rounding law?
Not yet. The Common Cents Act (H.R. 10167) passed the House on September 14, 2026 and went to the Senate. It would let businesses round cash totals to the nearest 5 cents. It was not law when this page was reviewed.
Does penny rounding apply to card payments?
No. Every state law and bill on this page applies rounding to cash only. Card, electronic and check payments are charged the exact amount.
Can a store round cash totals if my state has no law?
Often yes, especially rounding down, since the penny is still legal tender and businesses may give exact change (U.S. Treasury). The risk is rounding up where a state or city cash-acceptance law bars charging cash customers more than card customers. Check your state revenue department or attorney general.
Which states require rounding instead of just allowing it?
Arizona requires businesses without pennies at the register to round to the nearest 5 cents and post a notice. Georgia, Hawaii and Kentucky also set rounding for cash sales. Bills in New York and California would require it. Most other laws let businesses choose.
About this data
We check each state against its legislature, revenue department or governor's office where we can, and against law-firm and tax-publisher trackers (Holland & Knight, Avalara, MultiState, CSG South). Trackers sometimes disagree. For example, some count New Mexico, Minnesota and Oklahoma as rounding states, but their laws cover only payments to government, so we list them separately. Each state's own source is linked in its details.
Last reviewed: September 26, 2026. Spotted a change? Let us know and we'll update the page.