Key Takeaways:
- Round only cash, and only the final total after tax. Card, check and gift card payments stay exact.
- Some states allow nickel rounding, a few require it, and others have not passed a law yet. Check your state before you turn it on.
- Rounding up can conflict with cash discrimination laws, so some stores round down instead. Always rounding down costs about 2 cents per cash sale on average.
- Set rounding by payment type in your POS, so cash rounds while card payments stay exact.
The U.S. Mint stopped making pennies for circulation in November 2025, and most states that have acted now let you round cash sales to the nearest nickel. Round only the final cash total, after tax, and keep card payments at the exact cent.
Three rules can trip you up: cash discrimination laws, SNAP equal treatment and sales tax. This guide covers each one, then walks through what to set in your POS.
Penny phase-out: Treasury guidance for retailers
The U.S. stopped making pennies for circulation because each one costs 3.69 cents to make, according to the Treasury. About 114 billion pennies are still out there, and they remain legal tender.
Treasury’s guidance tells retailers to keep accepting pennies and giving penny change while they have them. When you cannot make exact change, you may round the final cash amount to the nearest 5 cents. That guidance is not binding, so states are setting the details.
How cash rounding to the nearest nickel works
Under the method Treasury points to, cash totals ending in 1, 2, 6 or 7 cents round down. Totals ending in 3, 4, 8 or 9 cents round up, and totals ending in 0 or 5 stay the same.
A $12.42 cash total becomes $12.40, and $12.43 becomes $12.45. Treasury expects rounding to land up and down about equally often, so it should not change prices overall.
Round the cash total instead of item prices
Your shelf and menu prices stay the same. Rounding applies to the final cash total, not to each item, as an Atlanta Fed analysis points out.
That keeps your item prices and tax math unchanged. A customer buying three items pays one rounded total, not three rounded prices.
How Canada handled penny rounding
Canada stopped making pennies in 2012 and gave retailers one clear rule. Prices are still calculated to the cent, rounding happens once on the final total after tax, and only cash rounds.
The U.S. has no single rule yet, which is why state laws and your own settings matter. Rounding once, after tax, on cash only also matches Treasury’s guidance.
Round after tax and only on cash payments
Treasury recommends rounding only after all taxes and fees are calculated, and only on cash. It says foreign currency, government checks, gift cards and split payments can be settled to the exact amount.
Most states keep sales tax on the exact total, before rounding. Arizona and Indiana write that into their laws, and Florida’s law does the same.
Cash rounding laws by state
By early October 2026, at least 19 states had passed a law on rounding cash sales. Four require it for at least some businesses: Arizona, California, Georgia and Indiana. Missouri’s law took effect August 28, 2026, and Connecticut’s starts January 1, 2027.
Other states have only issued guidance, and bills are pending in New York, New Jersey and Pennsylvania, among others. Laws are changing fast, so confirm with your state agency before you decide.
| Status | States | What it means for you |
|---|---|---|
| Required for at least some businesses | Arizona, California (starts July 1, 2027), Georgia (since July 1, 2026), Indiana (cash sales after Dec. 31, 2026) | Rounding is mandatory. Check the law’s scope for your business, since it does not apply the same way in every state. |
| Allowed | Alabama, Connecticut (starts Jan. 1, 2027), Florida, Hawaii, Idaho, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Oregon, Tennessee, Vermont, Virginia, Washington | Rounding is optional. Apply it the same way to every cash customer. |
| Government payments only | New Mexico, Oklahoma | These laws cover payments to government agencies, not private sales. |
| Bills pending | New York, New Jersey, Pennsylvania, Michigan, Ohio | Not law yet. Watch for changes before you set a rule. |
| Guidance only | Colorado, Iowa, North Carolina, South Carolina, Texas, Utah, Wisconsin | No state rounding law as of October 2026. Read your state’s guidance. |
Status as of October 2026, based on official state legislature sites and a Holland & Knight review. Laws are changing quickly, so confirm with your state before you change settings. This is not legal advice.
Differences in state cash rounding laws
The details differ more than the headlines suggest. Georgia requires rounding but still makes you accept exact payment in pennies, and Indiana lets a business round down, up or to the nearest nickel. Hawaii and Nebraska round totals of 1 or 2 cents up to 5 cents.
Arizona requires sellers that no longer have or use pennies to round and to post a notice at the register. Read your state’s text, since the scope and wording can change what you are allowed to choose.
What to do if your state has no rounding law
Without a state law, Treasury’s guidance still says you may round when you cannot make exact change. Cash-handling vendor Crane Payment Innovations suggests considering rounding down to limit legal risk.
Holland & Knight lists Colorado, Iowa, North Carolina, South Carolina, Texas, Utah and Wisconsin as states that issued guidance instead of passing a law. Check that guidance and your state’s pending bills before you set a rule.
Common Cents Act: federal penny rounding rules
Congress passed the Common Cents Act on September 28, 2026. It ends penny production for general circulation in law, and it allows businesses to round cash transactions to the nearest five cents when exact change is unavailable.
The bill allows rounding and does not require it. It also protects businesses that follow its rules, so watch how it fits with your state’s law as it takes effect.
Free printable templates and checklists to help you manage retail operations with ease
Cash discrimination laws and rounding up
Some states, counties and cities bar you from charging cash customers more than other customers, and rounding up can look like that. Law firm Holland & Knight tells retailers in Miami, New York, Philadelphia, San Francisco, Detroit and Washington, D.C. to check with counsel.
Connecticut’s guidance said its cash discrimination law barred rounding up until the new rounding law starts on January 1, 2027. Rounding down is one way around the issue, because cash customers never pay more than card customers. Ask your attorney which approach fits your location.
SNAP and EBT rules for cash rounding
Federal rules say SNAP customers must get the same prices and terms as other customers. EBT purchases are charged to the exact cent, so grocery groups have asked USDA for guidance on whether rounding cash sales breaks that rule.
An Arkansas attorney general opinion said a retailer may consider rounding non-cash sales, including SNAP, the same way it rounds cash. If you accept EBT, check with your state SNAP agency or the FNS Retailer Service Center at 1-877-823-4369 before you turn rounding on.
Nearest nickel vs. always rounding down
Retailers can round cash to the nearest nickel or always round down. Rounding to the nearest nickel moves some totals up and some down. Always round down moves every total to the next lower nickel.
Rounding down is simple to explain, but it costs you money. Kwik Trip chose it for its stores as pennies ran short.
| Option | Pros | Cons |
|---|---|---|
| Nearest nickel |
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| Always round down |
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The 2-cent average assumes cash totals end in every digit equally often. Your result depends on how many cash sales you ring.
How much always rounding down costs
Always rounding down costs about 2 cents per cash sale on average. To estimate your own cost, divide last month’s cash sales count by the days you were open, then multiply by $0.02 and by 365.
At 200 cash sales a day, that is $4 a day, or about $1,460 a year. The 2 cents assumes totals end in every digit equally often, so your number will vary.
POS settings for cash rounding
Look for four settings: rounding by payment type, the smallest coin to round to (5 cents), the rounding method (nearest nickel or always down) and rounding after tax. Many systems let you turn rounding on for cash only, so card payments are not touched.
After you save the settings, ring a few cash test sales with totals ending in each digit from 1 to 9. Check how the adjustment appears on the receipt and in your cash reports, since Treasury says showing it on the receipt makes things clearer for customers.
Cash rounding settings by payment type
Round cash and leave every other payment type at the exact cent. That matches Treasury’s advice to keep non-cash payments exact.
EBT is the one to check first. Talk to your state SNAP agency before you choose a setting.
| Payment type | Rounding setting | Why |
|---|---|---|
| Cash | Round to 5 cents (nearest nickel or always down) | Rounding applies to cash only. |
| Credit and debit | No rounding | Treasury recommends that card payments stay at the exact cent. |
| Check | No rounding | Treasury recommends that non-cash payments stay exact. |
| Gift card | No rounding | Treasury says gift cards can be settled to the exact amount. |
| EBT | No rounding, then confirm with your state SNAP agency | SNAP equal treatment rules require the same prices and terms for all customers. |
Source: U.S. Treasury penny FAQs.
Register signs and cashier training
Treasury recommends telling customers and training staff before you begin, and it says showing the adjustment on the receipt makes things clearer. Arizona requires a notice at the register, and a short sign helps anywhere: “Cash totals are rounded to the nearest 5 cents. Card payments are charged the exact amount.”
Train cashiers to explain the policy in one sentence and to know which payment methods round. Apply the same rule to every cash customer, since Treasury asks for rounding that is fair, consistent and transparent.
Cash refunds and drawer counts with rounding
Treasury says businesses set their own refund policies, and a cash refund paid without pennies should be rounded fairly and openly. Decide your refund rounding before you start, and write it down for your cashiers.
Rounding creates small gaps between your sales totals and the cash you collect. With rounding always down, cash collected runs slightly below sales totals, while commercial rounding keeps the gap small and swings both ways. When you balance the drawer, expect a small rounding difference so staff do not mistake it for a shortage.
Cash rounding examples for two stores
Marcus runs two convenience stores in Virginia, where businesses may round cash totals to the nearest 5 cents. He rounds cash to the nearest nickel, leaves credit and debit at the exact cent and posts a sign at each register.
Elena owns a liquor store in Miami-Dade County, where a local ordinance bars charging cash customers more than other customers. After talking with her attorney, she sets cash to always round down. At about 150 cash sales a day, she expects to give up around $3 a day.
How to set up cash rounding in KORONA
If you use KORONA, you set rounding on each payment method, so you can round cash and leave credit untouched. Open the payment method for editing and find the Rounding section, which has two settings:
- Rounding mode: Choose Commercial rounding or Always round down.
- Smallest currency denomination: Enter 0.05 to round to the nickel. At 0.01, KORONA does not round. A value of 0.10 rounds to the dime.
For U.S. cash, use 0.05. With Commercial rounding, a $12.43 cash total becomes $12.45, and with Always round down it becomes $12.40.
Next steps for penny rounding at your store
Check your state and local rules first, then set your POS to round only the final cash total after tax. Decide between rounding to the nearest nickel and always rounding down, and confirm your approach with your state SNAP agency if you take EBT. Post a sign, test a few sales and keep a written policy on hand, since the laws are still changing.
Speak with a product specialist to learn exactly what you need and how we can help.
Penny rounding FAQs
Where can I find my state’s current rounding rule?
Check your state legislature’s website, your state revenue department and your attorney general’s consumer protection office. The National Retail Federation’s penny phaseout page also links to guidance from a number of states.
Is the nickel going away too?
The Common Cents Act does not remove the nickel. It lets Treasury test a lower-cost nickel composition, with testing meant to avoid disrupting coin-operated machines.
Who enforces cash rounding rules?
It depends on where you operate. Arizona’s law is enforced by weights and measures, and Holland & Knight notes that violations in Philadelphia and Washington, D.C. go through consumer protection laws that let customers sue and recover legal fees. Apply your rounding rule the same way to every cash customer, and keep a written policy.
What if my POS cannot round cash?
Ask your POS provider whether it supports cash rounding or plans to add it. Until then, Treasury says to keep accepting pennies and giving penny change while you have them.
Can I still deposit pennies at my bank?
Yes. Treasury says businesses may keep depositing pennies at their banks, and pennies keep their value as legal tender.
Can I round cash totals to the nearest dime?
Stick with the nearest nickel unless your state says otherwise. Treasury’s guidance and the Common Cents Act describe rounding to the nearest 5 cents, and most state laws do too.
