Since the United States Treasury minted its final penny on November 12, 2025, some businesses in Wisconsin and across the country have begun rounding change in cash transactions to five-cent intervals, with different businesses utilizing different methods of rounding – some rounding up, some rounding down, and some a mix of both.
The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) and Wisconsin Department of Revenue (DOR) have issued guidance to businesses that are considering implementing a rounding practice to simplify and standardize rounding practices in Wisconsin to provide greater predictability and protection for Wisconsin consumers.
DATCP Guidance
Cash rounding is applicable only to cash transactions where change is required after the total amount due (price plus tax) has been calculated and cannot be provided.
While businesses can choose their rounding methodology, DATCP suggests rounding down to minimize consumer harm and ensure fairness and consistency:
- $0.01, $0.02 , $0.03 or $0.04 round down to $0.00.
- $0.06, $0.07, $0.08 or $0.09 round down to $0.05.
DATCP will use discretion enforcing state regulations related to the Unfair Sales Act; Price Accuracy; and Untrue, False, or Misleading Representations complaints and/or inspections to ensure that all consumers are treated fairly. Businesses should be conscious of the fact that there is a greater likelihood for consumer harm with a business applying a rounding up practice and should take care to avoid undue consumer burden. DATCP will evaluate all complaints and inspections related to any rounding practices based on the facts on a case-by-case basis.
Regardless of the methodology a business chooses to adopt for cash rounding, DATCP encourages businesses to post a clear and informative flyer conspicuously at entrances and any point of sale communicating any rounding policy.
DOR Guidance
The penny shortage does not impact how sales tax is calculated on a retail sale. Retailers multiply the sales price of taxable items by the Wisconsin sales tax rates and round that amount to the nearest cent ($0.01), as provided in sec. 77.61(3m), Wis. Stats., and sec. Tax 11.32(5), Wis. Adm. Code. If a retailer chooses to round the cash transaction to the nearest nickel, such rounding should occur after the sales tax is calculated.
This guidance applies only to Wisconsin sales and use tax; rounding cash transactions may present other issues and businesses should consult with their legal advisor before changing any business practices.