Official Site of The State of New Jersey

Cash Transaction Rounding Guidance Due to Penny Supply Changes

As the U.S. government has stopped minting pennies in 2025, a shortage of those coins is affecting how businesses provide exact change to cash-paying customers.

The New Jersey Division of Consumer Affairs advises that a business or seller may choose – but is not required – to implement a policy of rounding cash transactions up or down to the nearest nickel. However, the rounding must be disclosed clearly and conspicuously prior to the consumer incurring any charge for the goods or services purchased.

For New Jersey tax purposes, businesses that choose to round transactions up or down must adhere to the following requirements:

When to round: The rounding of a transaction only should be applied to the final transaction total after all taxes and/or fees have been added and payment is made in cash.

Sales and Use Tax: Sellers must collect Sales Tax based on the purchase price, regardless of whether the consumer or seller provided exact change. If the sales price of a taxable item is $39.99, the seller must remit the Sales Tax on $39.99. When rounding the final total up or down, the full amount of Sales Tax on the purchase price must be remitted to the State.

Corporation Business Tax (CBT) and Gross Income Tax (GIT): Businesses that pay CBT or GIT must use exact accounting when determining gross receipts or total income. If a business rounds up on a transaction, that revenue is treated as additional income to the seller. When a business rounds down, it reduces the gross receipt, or total income figure.

If you have questions about any New Jersey tax responsibilities, please contact the Division at 609-292-6400.

Businesses and sellers should follow the Consumer and Business Advisory published by the Division of Consumer Affairs if choosing to implement a rounding policy.