New Mexico penny rounding law
Government payments only. From July 1, 2026, amounts due to Taxation and Revenue, the MVD and county treasurers may be rounded to the nearest 5¢. No rule for store sales.
Short answer. New Mexico’s 2026 rounding law covers payments to the state, not store sales. Amounts due to Taxation and Revenue, the Motor Vehicle Division and county treasurers can be rounded to the nearest nickel; for shops there is no state rule, so rounding is store policy.
New Mexico cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
What New Mexico’s law covers
HB 291 (Laws 2026, Chapter 31), a Taxation and Revenue Department clean-up bill, passed the House 59-8 and the Senate 36-2 in February 2026. The Department’s 2026 legislative summary says sections 3, 14 and 17 allow rounding up or down to the nearest $0.05 for amounts due to the Department, the Motor Vehicle Division and county treasurers (property taxes), because the penny has been discontinued, starting July 1, 2026. Summaries of the bill describe the Secretary as able to permit or require that rounding by regulation or instructions. Income and corporate taxes can already be rounded to whole dollars under existing law. Nothing in the act covers private retail sales.
Can a New Mexico store round cash totals?
Yes, as store policy, because HB 291 does not reach private sales. New Mexico’s Unfair Practices Act bars misleading pricing, so a shop that rounds should post its policy and round both ways.
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 New Mexico 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 New Mexico 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 New Mexico Department of Justice, Consumer Affairs (505-490-4060). See also is it legal for a store to round up?
Sales tax
New Mexico has a gross receipts tax rather than a sales tax: the state rate is 4.875%, local add-ons raise the total, and most food sales are deductible. The tax is on the seller’s receipts at the actual price; round only the cash collected. 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 New Mexico 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.
| State | Status | Summary |
|---|---|---|
| Arizona | Law in effect | Mandatory “Swedish rounding” to the nearest 5¢ when a seller is not using pennies. Customer notice with set wording required. |
| Utah | Agency guidance only | No statute. Commerce’s business guide (Nov. 2025): any method is acceptable if disclosed clearly and conspicuously before the sale; apply sales tax before rounding. |
| Colorado | Agency guidance only | No statute. Revenue: rounding does not change sales tax and must be shown as a separate line. State agencies round cash symmetrically under a State Controller policy. |
| Oklahoma | Government payments only | Government payments only. From Nov. 1, 2026, state agencies must round cash payments symmetrically (tax levies excluded); local governments may, and must from July 1, 2027. No rule for private sales. |
| Texas | Agency guidance only | No statute. Comptroller: tax is computed before rounding; a retailer may round the total up or down, and no extra tax is assessed when rounding moves the total by 4¢ or less. |
Frequently asked questions
Is rounding to the nearest nickel legal at New Mexico stores?
Will my MVD or tax payment be rounded in New Mexico?
Does HB 291 change gross receipts tax for businesses?
Sources
- New Mexico Legislature: HB 291 (2026), final text
- New Mexico Taxation and Revenue Department: LS-2026 Legislative Summary (Apr. 13, 2026)
- BDO: States begin addressing sales tax effects of cessation of penny production (May 1, 2026)
- New Mexico Department of Justice, Consumer Affairs
- H.R. 10167 (119th Congress), Common Cents Act, enrolled bill text (GovInfo)