Massachusetts penny rounding law

With no Massachusetts rule for store sales, the calculator applies the nearest-nickel method used by most state laws and the federal bill, or rounding in the customer’s favor. Choose another state to compare.

Massachusetts law and bills

H.5138, “An Act relative to consumer protections for low valued legal tender scarcity,” was filed in January 2026 and heard by the Joint Committee on Consumer Protection and Professional Licensure on April 15. On May 26, 2026 the committee reported a redraft, H.5450, favorably. Bill summaries describe the redraft as amending the state’s cash-acceptance law to allow nearest-nickel rounding of cash totals. We found no House or Senate floor vote. Formal sessions for 2025–2026 ended July 31, 2026, so the bill can now pass only in informal sessions, where a single objection can stop it, before the session ends in January 2027.

What Massachusetts agencies say

Department of Revenue Directive 26-1 (May 5, 2026): vendors calculate sales tax on the exact price and remit that tax. Rounding a cash total up or down to the nickel does not change the tax; the directive’s example rounds a $3.18 total to $3.20 or $3.15, with $0.19 of tax remitted either way. The same applies to use tax.

Division of Standards bulletin (May 5, 2026): the state’s price-accuracy laws apply to individual item prices, so any rounding must be applied to the transaction total, not to item prices. The Division strongly recommends full, conspicuous disclosure of the rounding policy before the sale, including the option to pay another way, posted at entrances and points of sale, in multiple languages and accessible formats.

Can a Massachusetts store round cash totals?

Yes, with care. Massachusetts law (M.G.L. c. 255D, § 10A) requires retail stores to accept cash and bars discriminating against cash buyers, so rounding is a way to keep taking cash without pennies, not a reason to stop. Following the Division of Standards: round only the final total, never shelf or item prices, and post the policy where customers see it before they pay. Rounding in the customer’s favor or symmetrically fits that guidance best.

Federal law

There is no federal rounding rule in force either. The Common Cents Act (H.R. 10167) passed Congress on September 28, 2026, but as of October 31, 2026 we found no record of it being signed. If enacted, it would let sellers in Massachusetts round cash totals symmetrically to the nearest 5¢ without requiring anyone to round, keep pennies legal tender, and protect sellers that follow its method from conflicting state or local rules. Federal status of the penny.

Your options as a customer

• Pay by card, debit, EBT or app. Those payments are charged the exact amount; rounding only ever touches cash.
• Pay with exact change. Pennies are still legal tender (31 U.S.C. § 5103). The Federal Reserve notes, though, that no federal law makes a private business accept cash or coins. Massachusetts is different: state law (M.G.L. c. 255D, § 10A) requires retail stores to accept cash. Federal Reserve FAQ.
• Check the receipt. It should show the exact total and a separate rounding line, so you can see which way it went.
• Report a problem. If a store rounds every cash total up without telling customers, contact the Massachusetts Attorney General: file a consumer complaint (Consumer Hotline (617) 727-8400). See also is it legal for a store to round up?

Sales tax

Massachusetts’s sales tax rate is 6.25%, with no local general sales tax (local meals and room taxes are separate). Under Directive 26-1, tax is figured on the exact price and remitted in full whichever way the cash total is rounded. More on sales tax and cash rounding.

SNAP, EBT and card payments

SNAP and WIC benefits are paid electronically, so the EBT part of any purchase in Massachusetts is always charged to the exact cent. Federal rules require stores to treat SNAP shoppers the same as other customers, so a store that rounds the cash part of a split payment should use the same rule for everyone. SNAP/EBT, cards and refunds.

Stores and local news in Massachusetts

The Boston Globe reported in January 2026 that the end of the penny was “adding up to one big headache” for Massachusetts stores, with practices varying from rounding down to asking for exact change. Dunkin’, a Massachusetts-founded chain, has reportedly advised franchisees to round in the customer’s favor.

Rules in neighboring states

Shopping across the line? Rounding rules change at the border.

Checked against the sources below as of October 31, 2026. Compare every state in the state-by-state tracker.