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March 17, 2026
House Bill 2938 requires businesses that do not use pennies for cash transactions to round the final cash total to the nearest five cents
Gov. Katie Hobbs has signed House Bill 2938 into law, and it is now in effect. The measure addresses the U.S. Mint’s cessation of penny production by requiring retailers that accept cash but do not have pennies available or do not use them at the point of sale to round the final cash transaction total (after taxes and fees) to the nearest five-cent increment.
This rounding requirement—known as “Swedish rounding”—applies only to cash transactions and does not affect credit/debit card, EBT, or other non-cash payments.
Retailers subject to the rule must post a visible notice at the point of sale stating: “Cash transactions are rounded to the nearest five-cent increment pursuant to state law.” Enforcement is handled by the Arizona Department of Agriculture’s Weights and Measures Services Division.
The rounding method is as follows:
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Totals ending in 1 or 2 cents → rounded down to the nearest 5 cents
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Totals ending in 3 or 4 cents → rounded up to the nearest 5 cents
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Totals ending in 6 or 7 cents → rounded down to the nearest 5 cents
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Totals ending in 8 or 9 cents → rounded up to the nearest 5 cents
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Amounts already ending in 0 or 5 cents remain unchanged.
State:
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