Penny Shortage

The U.S. Treasury Department has stopped minting the penny. As a result, pennies are becoming scarce, and retailers may not be able to give exact change when customers pay in cash.

Until further notice, there is no change in how to calculate sales tax, regardless of whether the customer pays with cash, credit or debit card, or another method. 

Rounding 

If you cannot give exact change when a customer pays in cash and choose to round the total amount due to the next lowest, next highest, or nearest nickel, it does not impact the amount of sales tax you must collect and remit. Charge sales tax on the sales price and do not make any adjustment due to rounding. 

This guidance only applies to cash transactions and does not apply to any rounding greater than 4 cents.

It is important to keep good records to determine the correct amount of state and local taxes you owe.

Filing Your Sales and Use Tax Return in e-Services

When you file your sales tax return, report the full amount of taxable sales without rounding on the General Rate Sales Tax line and any applicable local tax lines. Do not adjust your taxable sales or gross receipts due to rounding.