Arizona penny rounding law
Mandatory “Swedish rounding” to the nearest 5¢ when a seller is not using pennies. Customer notice with set wording required.
Arizona cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
The rounding rule
If one-cent coins are not available or not used at the point of sale, the seller shall apply “Swedish rounding” to the final total (after taxes, fees and charges): 1 and 2 cents round down, 3 and 4 round up, 6 and 7 round down, 8 and 9 round up. The law says a seller may not use any other rounding method, so rounding every sale up (or down) is not compliant.
Who it applies to
Every seller that does not have or does not use pennies at the register. A seller that still gives exact change in pennies does not have to round.
Customer notice
A notice must be visible to customers at the point of sale stating that cash transactions are rounded to the nearest five-cent increment pursuant to state law.
Cash transactions are rounded to the nearest five-cent increment pursuant to state law.
Make a printable Arizona cash rounding sign with the state wording.
Sales tax
State and municipal taxes and fees must be remitted based on the sales price before the cash transaction was rounded (A.R.S. § 44-7952(F)). More on sales tax and cash rounding.
What is not rounded
- Credit card, debit card, electronic funds transfer, mobile payment app and any other non-cash payment are charged the exact amount.
Pennies, enforcement and safe harbors
The law does not require a seller to accept or refuse any particular coin or bill, and does not make any coin invalid.
Enforced by the weights and measures services division of the Arizona Department of Agriculture, which can issue warnings, orders and civil penalties. A seller that complies is protected from claims under other state or municipal law.
The law
| Law | HB 2938, Laws 2026, Ch. 5 (A.R.S. § 44-7952) |
|---|---|
| Signed | March 13, 2026 |
| Effective | March 13, 2026 (emergency measure, effective when signed) |
| Status | Law in effect |