Updated
Updated · Holland & Knight · Aug 10
16 States Enact Penny Rounding Laws as U.S. Penny Scarcity Spreads
Updated
Updated · Holland & Knight · Aug 10

16 States Enact Penny Rounding Laws as U.S. Penny Scarcity Spreads

3 articles · Updated · Holland & Knight · Aug 10

Summary

  • Sixteen states now have penny-rounding laws in force, letting retailers round cash totals to the nearest nickel as penny shortages make exact change harder to give.
  • Most laws round 1, 2, 6 and 7 cents down and 3, 4, 8 and 9 cents up, while typically leaving non-cash payments and sales-tax calculations based on the unrounded price.
  • Missouri's law takes effect on Aug. 28, 2026, and Connecticut's on Jan. 1, 2027; New York has passed a bill awaiting the governor, and Pennsylvania and California are still advancing measures.
  • Florida explicitly shields merchants from unfair-practice liability for authorized rounding, while Washington says statewide law preempts local restrictions—highlighting conflicts with cash-discrimination rules in some cities and counties.
  • The state push follows President Donald Trump's order to stop penny production; a federal Common Cents Act allowing, but not requiring, nickel rounding has already passed the House.

Insights

With the penny officially obsolete, could new cash rounding rules secretly act as a micro-tax on consumers who avoid credit cards?
How will nationwide retailers navigate the legal minefield of conflicting local and state rounding laws without facing massive consumer lawsuits?
As pennies vanish from registers, will the psychological trick of pricing items at $9.99 finally disappear from American retail?