Due to the end of penny production, states are now seeing a penny shortage and have questions on how to round their cash transactions. New Maryland law authorizes rounding the price of goods and services being sold or the change given in certain in-person cash transactions.

Generally, if a merchant rounds a cash transaction, a merchant must round down to the nearest multiple of 5 cents when the price or the change ends in 1 cent, 2 cents, 6 cents, or 7 cents, and round up when the price or change ends in 3 cents, 4 cents, 8 cents, or 9 cents. More information can be found here.

For more information about this and other 2025 changes to Maryland taxes, please visit the Maryland Comptroller updates webpage.