North Carolina penny rounding law
Optional symmetric rounding of cash totals or change since July 2, 2026; customers with exact change may pay exactly. Cash property tax payments round down.
North Carolina cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
The rounding rule
When pennies are no longer being produced, a retailer may round a cash total to the nearest five cents: amounts ending in 1, 2, 6 or 7 cents round down, 3, 4, 8 or 9 cents round up, and 0 or 5 stay the same. The retailer can round the total the customer pays or the change it hands back. A customer who has exact change may choose to pay the exact amount without rounding. A retailer that does round must use this method.
Who it applies to
Private businesses, and state and local government units acting as retailers, that accept cash. ABC (liquor) stores have their own section (G.S. 18B-804A): they may round now and must round from July 1, 2027 if pennies are still out of production. Separately, when pennies are no longer produced and not available, a tax collector taking an in-person cash property tax payment must round the amount owed down to the nearest five cents, and the rounded amount counts as payment in full (G.S. 105-357(a1)).
Customer notice
We found no customer-sign requirement in the act. Telling customers before they pay is still good practice.
Make a printable North Carolina cash rounding sign.
Sales tax
Sales tax is calculated before the cash adjustment: rounding does not alter the sales price, sales tax, surcharge, assessment or fee underlying the transaction. The Department of Revenue’s Directive SD-26-1 (January 22, 2026) adds that tax is computed on the pre-rounding price and that retailers that round must keep records of it. More on sales tax and cash rounding.
What is not rounded
- Checks, debit and credit cards, ACH and other electronic payments, gift cards and money orders are processed to the exact penny.
- Mixed tender: only the cash portion is rounded.
- A customer paying with exact change may pay the exact amount.
Pennies, enforcement and safe harbors
Pennies remain legal tender, and the law lets a customer with exact change pay the exact amount. The act does not require stores to round.
The analyses we read describe no penalty for a retailer that chooses not to round. A retailer that rounds must use the statutory method.
The law
| Law | S 595, S.L. 2026-31, Section 14 (new G.S. 66-515) |
|---|---|
| Signed | Became law July 2, 2026 |
| Effective | July 2, 2026 (took effect when S.L. 2026-31 became law; ABC store rounding becomes mandatory July 1, 2027) |
| Status | Law in effect |
Frequently asked questions
Is cash rounding required in North Carolina?
Can I insist on paying the exact amount in North Carolina?
When did North Carolina’s rounding law take effect?
Does North Carolina's rounding apply to card payments?
Sources
- UNC School of Government (Kara Millonzi): New cash rounding rules, what North Carolina local governments need to know (Aug. 13, 2026)
- North Carolina General Assembly: Senate Bill 595 (2025–2026 session)
- North Carolina DOR: Sales and Use Tax Directive SD-26-1 (Jan. 22, 2026)
- North Carolina DOR: Directive for retailers that round cash transactions (press release, Feb. 17, 2026)