Michigan penny rounding law

With no Michigan 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.

Michigan law and bills

SB 1014 (Sen. Jeff Irwin), introduced June 3, 2026, would amend the Shopping Reform and Modernization Act to require in-person cash totals to be rounded down to the nearest nickel after tax, according to legislative trackers and news coverage. It was referred to the Senate Committee on Finance, Insurance, and Consumer Protection the same day and has had no further action. Michigan’s Legislature meets year-round, but bills not passed by the end of 2026 die with the 103rd Legislature.

What Michigan agencies say

Treasury’s Sales and Use Tax Notice Regarding Federal Phase Out of the Penny (December 8, 2025) says:

• Sales and use tax is computed to the cent, under the normal rules, before any rounding.
• After that, rounding is at the seller’s discretion: up, down or to the nearest 5¢. It does not change the tax due.
• Extra cents collected by rounding up do not violate the rule against collecting more than the tax due.
• Treasury recommends listing any round-up amount separately on the receipt and keeping adequate records.

Can a Michigan store round cash totals?

Yes. Treasury’s notice treats the method as the seller’s choice, and no statute limits it yet. Michigan’s Consumer Protection Act still bars misleading pricing, so post the policy and show the rounding line on the receipt. If SB 1014 passed, rounding up would no longer be an option. Kwik Trip, which has stores in the Upper Peninsula, already rounds cash purchases down.

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 Michigan 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. We found no Michigan law that changes that, so a store sets its own payment policy. 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 Michigan Attorney General: consumer complaint. See also is it legal for a store to round up?

Sales tax

Michigan’s sales tax rate is 6%, with no local sales taxes, and groceries are exempt. Treasury says to compute tax to the cent before rounding and recommends showing any round-up amount separately on the receipt. 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 Michigan 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.

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.