Kentucky penny rounding law
Optional symmetric rounding for private cash sales when pennies are unavailable; mandatory for cash payments of debts to state and local government.
Kentucky cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
The rounding rule
When pennies are not available, a cash transaction may be rounded to the nearest five-cent increment after all items, fees, taxes and charges are calculated to the exact cent: 1–2 cents down to 0, 3–4 cents up to 5, 6–7 cents down to 5, 8–9 cents up to 10.
Who it applies to
Private sales of goods and services (optional), plus lottery, racing and charitable-gaming transactions. For cash payments of debts owed to the Commonwealth, cities, counties, other local governments and school districts, rounding shall apply when pennies are not available.
Customer notice
No customer sign is required.
Make a printable Kentucky cash rounding sign.
Sales tax
Retailers must still collect and remit the correct tax regardless of the payment method (KRS 139.210(6) as amended). The Department of Revenue says tax is calculated to the penny first and rounding happens only after. More on sales tax and cash rounding.
What is not rounded
- Noncash transactions continue to be settled to the cent without rounding.
Pennies, enforcement and safe harbors
Rounding applies only when pennies are not available.
A seller that complies is not in violation of other laws, regulations or standards.
The law
| Law | HB 757, 2026 Ky. Acts Ch. 161, §§ 22–26 |
|---|---|
| Signed | April 14, 2026 (enacted over a partial veto) |
| Effective | July 15, 2026 (July 15, 2026, per the Department of Revenue) |
| Status | Law in effect |