Maryland penny rounding law
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.
Maryland cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
The rounding rule
A merchant may round the price, after discounts and after taxes and fees: 1, 2, 6 or 7 cents down to the nearest amount divisible by five, 3, 4, 8 or 9 cents up. Alternatively the merchant may round the change instead, but not both. A price under 5 cents may be rounded up to 5 cents.
Who it applies to
Any “merchant” (anyone in the business of selling goods or services), for the cash portion of in-person sales and for phone, mail or internet sales paid in cash. The Comptroller notes rounding is not required if the merchant has pennies.
Customer notice
No customer sign is required.
Make a printable Maryland cash rounding sign.
Sales tax
Tax is calculated on the taxable price before rounding, and the taxable price excludes up to 2 cents collected because of rounding (Tax-General § 11-101(l)(3)(v)). Rounding may not change the calculation of any tax or fee. More on sales tax and cash rounding.
What is not rounded
- Gift cards and paper instruments other than Federal Reserve notes are not cash.
- Transactions paid with exact change are not rounded.
Pennies, enforcement and safe harbors
The law supersedes conflicting local rules and ordinances.
No penalty provision.
The law
| Law | SB 893 (Ch. 516) / HB 1026 (Ch. 515), 2026; Business Regulation §§ 1-601 et seq. |
|---|---|
| Signed | May 12, 2026 |
| Effective | May 12, 2026 (emergency acts, effective when signed) |
| Status | Law in effect |