Penny rounding laws by state
Status of cash rounding laws in all 50 states and the District of Columbia, as of October 30, 2026.
16
States with a law in effect for cash sales
2
Enacted, starting later (CT Jan. 2027, CA July 2027)
3
Laws covering government payments only
15
Guidance only or bill pending
As of October 30, 2026. Each enacted law was checked against the bill text or an official state summary, linked in the last column. Entries marked “(reported)” come from news and trackers because we could not read the final text; treat them as unconfirmed. Guidance-only states have no statute, so rounding there is a store policy.
States with their own guide
- Alabama Law in effect
- Arizona Law in effect
- California Law enacted, starts later
- Connecticut Law enacted, starts later
- Florida Law in effect
- Georgia Law in effect
- Hawaii Law in effect
- Idaho Law in effect
- Indiana Law in effect
- Kentucky Law in effect
- Maryland Law in effect
- Minnesota Government payments only
- Missouri Law in effect
- Nebraska Law in effect
- Tennessee Law in effect
- Vermont Law in effect
- Virginia Law in effect
- Washington Law in effect
All states
| State | Status | Effective | Rule summary | Law / source |
|---|---|---|---|---|
| Alabama | Law in effect | Optional symmetric rounding of in-person cash transactions to the nearest 5¢. Payments to government excluded. | HB 545 | |
| Alaska | No law found | — | No state rounding law or official guidance found. | — |
| Arizona | Law in effect | Mandatory “Swedish rounding” to the nearest 5¢ when a seller is not using pennies. Customer notice with set wording required. | HB 2938 | |
| Arkansas | No law found | — | No state rounding law or official guidance found. | — |
| California | Law enacted, starts later | Mandatory symmetric rounding of in-store cash totals from July 1, 2027. Totals of 2¢ or less not rounded. Cash refunds rounded too. | AB 1793 | |
| Colorado | Agency guidance only | No statute | No statute. The Department of Revenue says retailer rounding does not change the sales tax due and the adjustment must be shown as a separate line. | Agency guidance |
| Connecticut | Law enacted, starts later | Symmetric rounding allowed from Jan. 1, 2027 (totals of 4¢ or less excluded). Until then, state guidance says round down only. | HB 5349 | |
| Delaware | No law found | — | No state rounding law or official guidance found. | — |
| District of Columbia | No law found | — | No state rounding law or official guidance found. | — |
| Florida | Law in effect | Optional symmetric rounding of in-person cash sales to the nearest nickel. Sales tax stays on the unrounded price. | CS/SB 1074 | |
| Georgia | Law in effect | Mandatory symmetric rounding of in-person cash totals; 1–2¢ totals round up to 5¢. Merchants must still accept exact payment in pennies. | HB 1112 | |
| Hawaii | Law in effect | Optional symmetric rounding of cash transactions to the nearest 5¢; totals of 1–2¢ round up to 5¢. | SB 3255 SD1 HD2 CD1 | |
| Idaho | Law in effect | Optional symmetric rounding when a seller cannot settle a cash sale to the cent; applies to cash refunds. Tax on the pre-rounding price. | S 1350 | |
| Illinois | No law found | — | No state rounding law or official guidance found. | — |
| Indiana | Law in effect | Businesses may round cash totals down, up, or to the nearest 5¢. From 2027, cash payments of state and local taxes and fees round down. | SEA 243 | |
| Iowa | Agency guidance only | No statute | No statute. The Iowa Department of Revenue has published sales tax guidance on rounding. | Agency guidance |
| Kansas | No law found | — | No state rounding law or official guidance found. | — |
| Kentucky | Law in effect | Optional symmetric rounding for private cash sales when pennies are unavailable; mandatory for cash payments of debts to state and local government. | HB 757 | |
| Louisiana | No law found | — | No state rounding law or official guidance found. | — |
| Maine | No law found | — | No state rounding law or official guidance found. | — |
| Maryland | Law in effect | Optional symmetric rounding of the price or the change (not both); prices under 5¢ may round up to 5¢. Up to 2¢ of rounding is excluded from taxable price. | SB 893 | |
| Massachusetts | Agency guidance only | No statute | No statute. DOR Directive 26-1 says nickel rounding in either direction does not change the sales tax calculation. | Agency guidance |
| Michigan | Agency guidance only | Not enacted | No statute. Treasury has issued a sales and use tax notice on the penny phase-out. A bill (SB 1014) has been introduced. | Agency guidance SB 1014 (pending) |
| Minnesota | Government payments only | Law covers state agencies only. For businesses, Revenue guidance allows rounding to the nearest, next lower or next higher nickel. | HF 4591 | |
| Mississippi | No law found | — | No state rounding law or official guidance found. | — |
| Missouri | Law in effect | Optional symmetric rounding of the final cash total after discounts and taxes. Vendors remit the full tax. | HCS HB 2819 | |
| Montana | No law found | — | No state rounding law or official guidance found. | — |
| Nebraska | Law in effect | Optional symmetric rounding of either the cash total or the cash paid out, one method per location. 1–2¢ owed to an employee rounds up. | LB 838 | |
| Nevada | Agency guidance only | No statute | No statute. The Department of Taxation addresses rounding in its sales tax FAQs. | Agency guidance |
| New Hampshire | No law found | — | No state rounding law or official guidance found. | — |
| New Jersey | Agency guidance only | Not enacted | No statute. Division of Taxation: rounding is optional, applies to the final total, must be disclosed, and tax stays on the purchase price. Bill A5233 pending. | Agency guidance A5233 (pending) |
| New Mexico | Government payments only (reported) | — | Reported: lets the tax secretary permit or require rounding of cash tax payments to 5¢. Does not cover private sales. We could not read the final text. | HB 291 |
| New York | Bill pending | Not enacted | A9274-A passed the Assembly and Senate (June 2026) and awaits the governor. It would round cash totals to the nearest 5¢, with tax on the unrounded amount, 180 days after enactment. | A9274-A (pending) |
| North Carolina | Agency guidance only | No statute | No statute. Directive SD-26-1 (Jan. 22, 2026): sales tax is computed first; retailers may round the cash total and record it on receipts. | Agency guidance |
| North Dakota | No law found | — | No state rounding law or official guidance found. | — |
| Ohio | Bill pending | Not enacted | HB 737 (introduced) would round cash payments to government to a nickel. No law for retail sales. | HB 737 (pending) |
| Oklahoma | Government payments only | Government payments only. From Nov. 1, 2026, state agencies must round cash payments symmetrically (tax levies excluded); local governments may, and must from July 1, 2027. No rule for private sales. | HB 3075 Agency guidance | |
| Oregon | Law in effect (reported) | — | Reported: optional symmetric rounding for in-person cash sales, with signage duties; exact-change payers exempt. Signed April 2026 (reported). We could not read the enrolled text. | HB 4178 |
| Pennsylvania | Bill pending | Not enacted | HB 2388 (rounding of payments in physical legal tender) passed the House and is in the Senate. | HB 2388 (pending) |
| Rhode Island | No law found | — | No state rounding law or official guidance found. | — |
| South Carolina | Agency guidance only | No statute | No statute. The Department of Revenue has published sales and use tax guidance on the end of penny production. | Agency guidance |
| South Dakota | Agency guidance only | No statute | No statute. The Department of Revenue has posted guidance on the end of penny minting. | Agency guidance |
| Tennessee | Law in effect | Optional symmetric rounding when a business has no exact change; rounding is exempt from Consumer Protection Act claims. Tax still due to the cent. | HB 1744 / SB 1810 | |
| Texas | Agency guidance only | No statute | No statute. Comptroller: tax is computed on the price before rounding; a retailer may round the total collected and either direction is acceptable. | Agency guidance |
| Utah | Agency guidance only | No statute | No statute. The Department of Commerce has published a business guide to cash rounding (Nov. 2025). | Agency guidance |
| Vermont | Law in effect | Optional symmetric rounding of the final cash total. Businesses that round must post the state’s model notice. Cash refunds must be exact. | S.327 | |
| Virginia | Law in effect | Optional symmetric rounding for cash sales, cash payments and cash wages. Taxes are computed and remitted on the pre-rounding price. | HB 954 | |
| Washington | Law in effect | Optional symmetric rounding of the in-person cash total or change; customers may pay the exact amount. Preempts local rules. | SHB 2334 | |
| West Virginia | No law found | — | No state rounding law or official guidance found. | — |
| Wisconsin | Agency guidance only | No statute | No statute. DOR (Mar. 13, 2026): compute tax to the nearest cent first; any nickel rounding happens after tax. DATCP has consumer guidance. | Agency guidance |
| Wyoming | No law found | — | No state rounding law or official guidance found. | — |
How to read the statuses
- Law in effect A state statute lets (or requires) businesses round cash totals now.
- Law enacted, starts later Signed but not yet in effect. Connecticut’s law starts January 1, 2027 and California’s July 1, 2027.
- Government payments only The statute covers cash paid to (or by) state or local government. Minnesota also has Revenue guidance for businesses.
- Bill pending A bill has been filed or passed but is not law. New York’s A9274-A has passed both chambers and awaits the governor.
- Agency guidance only No statute, but the tax or consumer agency has said how rounding interacts with sales tax.
- No law found No statute or official guidance we could find. Rounding is a store policy; check any state cash-acceptance law before rounding up.
What almost every law has in common
- Only cash is rounded; card, debit, EBT, check and app payments are exact.
- Only the final total (or the change) is rounded, after sales tax.
- Sales tax is figured and remitted on the unrounded price.
- The rounding is symmetric: 1, 2, 6, 7 down; 3, 4, 8, 9 up.
Frequently asked questions
How many states have penny rounding laws?
As of October 30, 2026 we count 18 states with an enacted law covering private cash sales (16 in effect, 2 starting later), plus 3 that cover government payments only. Counts elsewhere vary (19 to 22) because some trackers include government-only or pending laws.
Which states require stores to round cash?
Arizona (when the seller is not using pennies) and Georgia require rounding now, and California will from July 1, 2027. Indiana’s law was first written as mandatory but was amended to optional before it took effect.
My state has no law. Can I still round?
Usually, as store policy. Rounding down is a discount. Rounding up can run into cash-discrimination or price-accuracy laws, so post a clear sign, round symmetrically, and remit tax on the unrounded price.
Is New York’s rounding bill law yet?
Not as of our last check. A9274-A passed the Assembly and Senate in mid-2026 and is awaiting the governor’s decision. If signed, it would take effect 180 days later.
Does a federal law override state rounding laws?
Not yet. The Common Cents Act (H.R. 10167) passed Congress in September 2026 but we found no record of it being signed. If enacted, it would give sellers that follow its rounding rules a safe harbor from state requirements. Federal status.
Sources
- Alabama: HB 545, Act 2026-548
- Arizona: HB 2938, Laws 2026, Ch. 5 (A.R.S. § 44-7952)
- California: AB 1793, Ch. 896, Stats. 2026 (Civil Code §§ 1789.60–1789.67)
- Connecticut: HB 5349, Public Act 26-128, §§ 2–3
- Florida: CS/SB 1074, Ch. 2026-68, Laws of Florida (Fla. Stat. § 212.12(10)(c))
- Georgia: HB 1112 (2026), O.C.G.A. §§ 10-1-970 and 10-1-971
- Hawaii: SB 3255 SD1 HD2 CD1, Act 159 (2026)
- Idaho: S 1350, 2026 Session Laws Ch. 241 (Idaho Code § 63-3643)
- Indiana: SEA 243 (P.L. 128-2026) as amended by HEA 1406 (P.L. 162-2026); IC 23-15-13 and IC 5-36.5
- Kentucky: HB 757, 2026 Ky. Acts Ch. 161, §§ 22–26
- Maryland: SB 893 (Ch. 516) / HB 1026 (Ch. 515), 2026; Business Regulation §§ 1-601 et seq.
- Minnesota: HF 4591, Laws 2026, Ch. 119, sec. 7 (Minn. Stat. § 16A.402)
- Missouri: HCS HB 2819 (2026), RSMo § 144.285
- Nebraska: LB 838 (2026), section 39
- Tennessee: HB 1744 / SB 1810, Public Chapter 602 (2026)
- Vermont: S.327, Act 128 (2026), secs. 13a–13b (9 V.S.A. § 2)
- Virginia: HB 954, 2026 Acts Ch. 713 (Va. Code §§ 6.2-200.1 and 6.2-200.2)
- Washington: SHB 2334, Ch. 138, Laws of 2026
- Oregon Legislature: HB 4178 (2026) measure overview
- Oklahoma HB 3075 (2026), enrolled text
- New York Senate: A9274 (2025–2026 session)
- Streamlined Sales Tax Governing Board: Penny elimination, state-specific guidance links