Washington penny rounding law

Optional symmetric rounding of the in-person cash total or change; customers may pay the exact amount. Preempts local rules.

Updated · Based on official sources listed below

Optional
Businesses may round cash totals
June 11, 2026
In effect since
No
Customer sign required by law
Unrounded
Sales tax is figured on the pre-rounding price

Washington cash rounding calculator

Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.

What do you have?
Transaction
Only the methods the state allows are listed.
Shows the change due.

Turn on JavaScript to use the calculator. The rule: totals ending in 1, 2, 6 or 7 cents round down to the nearest nickel; 3, 4, 8 or 9 cents round up.

How each ending cent rounds under this rule

  1. …0¢…0¢same
  2. …1¢…0¢−1¢
  3. …2¢…0¢−2¢
  4. …3¢…5¢+2¢
  5. …4¢…5¢+1¢
  6. …5¢…5¢same
  7. …6¢…5¢−1¢
  8. …7¢…5¢−2¢
  9. …8¢…0¢+2¢
  10. …9¢…0¢+1¢

The rounding rule

The total price (after taxes, fees and discounts) or the change due on an in-person cash transaction may be rounded to the nearest five-cent increment: 1, 2, 6 and 7 cents round down, 3, 4, 8 and 9 round up. A customer with exact change may pay the unrounded total.

Who it applies to

Sellers taking in-person cash payments. State agencies may also round when pennies are not available. Rounding is a matter of statewide concern, so local governments may not treat it as a surcharge or unlawful price difference.

Customer notice

No customer sign is required.

Make a printable Washington cash rounding sign.

Sales tax

Sales and use tax is calculated on the selling price without regard to rounding. Business and occupation tax does not apply to amounts added by rounding up, and no deduction is allowed for rounding down. More on sales tax and cash rounding.

What is not rounded

Pennies, enforcement and safe harbors

Customers keep the right to pay the exact unrounded total with exact change.

Compliant rounding is not a violation of state or municipal law, and a rounded total that differs from a displayed price is not actionable under the Consumer Protection Act.

The law

LawSHB 2334, Ch. 138, Laws of 2026
SignedMarch 23, 2026
EffectiveJune 11, 2026 (effective June 11, 2026)
StatusLaw in effect

Checked against the sources below as of October 30, 2026. Compare other states in the state-by-state tracker.

Frequently asked questions

Do I owe B&O tax on rounding-up amounts in Washington?
No. SHB 2334 says business and occupation tax does not apply to amounts gained by rounding up, and you cannot deduct amounts lost by rounding down.
Can a Washington customer insist on paying the exact amount?
Yes. If the customer has exact change, they can pay the unrounded total.
Does Washington's rounding apply to card payments?
No. Checks and other negotiable instruments, electronic funds transfers, money orders, credit and debit cards and other electronic payments are not rounded. Only cash is rounded.

Sources

  1. Washington SHB 2334, Session Law Ch. 138, Laws of 2026
  2. Washington DOR: Interim guidance statement regarding elimination of the penny (Feb. 26, 2026, issued before SHB 2334)