Minnesota penny rounding law
Law covers state agencies only. For businesses, Revenue guidance allows rounding to the nearest, next lower or next higher nickel.
Minnesota cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
The rounding rule
Minnesota’s statute lets a state agency round cash payments symmetrically to the nearest five cents (1, 2, 6, 7 down; 3, 4, 8, 9 up), with totals of $0.01 or $0.02 rounded up to $0.05. There is no statute for private businesses. The Department of Revenue’s guidance says businesses may round cash totals to the nearest, next lowest or next highest nickel, and the guidance does not cover rounding greater than 4 cents.
Who it applies to
The statute: state agencies and parties transacting on an agency’s behalf. Businesses: Department of Revenue guidance only.
Customer notice
Businesses: no sign requirement. A state agency that rounds must adopt a rounding policy and post it at each location where cash transactions occur.
Make a printable Minnesota cash rounding sign.
Sales tax
The Department of Revenue says to charge sales tax on the sales price, make no adjustment for rounding, and report the full unrounded taxable sales. More on sales tax and cash rounding.
What is not rounded
- The agency statute does not apply to electronic funds transfers, checks, gift cards, money orders, credit cards or similar payments.
Pennies, enforcement and safe harbors
Neither the statute nor the guidance requires businesses to round.
No penalty provision.
The law
| Law | HF 4591, Laws 2026, Ch. 119, sec. 7 (Minn. Stat. § 16A.402) |
|---|---|
| Signed | May 27, 2026 |
| Effective | May 28, 2026 (state-agency rule effective May 28, 2026) |
| Status | Government payments only |