Washington Adopts “Penny Rounding” For Cash Purchases
Post Date:03/25/2026Washington shoppers may soon notice a small change at the register - literally.
A new state law signed by Gov. Bob Ferguson allows retailers to round cash transactions to the nearest five cents as pennies become less available. The change comes after the federal government stopped producing new pennies, creating challenges for businesses trying to make exact change.
Under the law, totals ending in 1, 2, 6, or 7 cents are rounded down, while totals ending in 3, 4, 8, or 9 cents are rounded up. The policy applies only to cash payments; credit and debit transactions remain unchanged.
Importantly, businesses are allowed (but not required) to use rounding, and taxes will still be calculated based on the original purchase price before rounding.
State officials say the law provides consistency and clarity for both retailers and customers as the use of pennies continues to decline. The change is expected to take effect in mid-June.