Penny Elimination: Sales Tax Calculation and Cash Rounding Guidance for Retailers

• The U.S. Treasury has stopped minting pennies, causing potential shortages for making exact change in cash transactions.
• Sales tax must still be calculated and rounded as before, to the nearest cent, regardless of payment method.
• If exact change cannot be given in cash, retailers may round the total to the nearest nickel, but this does not affect the sales tax calculation.
• Retailers should consult state-specific guidance and legal advisors, as other laws may impact rounding policies.

Source: streamlinedsalestax.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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