Treasury Dept Issues Guidance On Ending The Penny

May 25, 2025 Business, Trump Administration

The Treasury told WSJ businesses will need to start rounding up or down to the nearest 5 cents when there’s not enough pennies to use in everyday cash transactions. Cashless transactions will still be priced at exact change.

State and local governments should provide guidance to retailers so that sales taxes are properly collected, WSJ reports. This is expected to change how retailers price items and end 99-cent pricing that has been known to influence buying decisions.

Consumers younger than age 55 used cash for just 12% of payments in 2023, compared to 22% for those age 55 and older. Low-income and older Americans are more likely to use cash, raising concerns about fairness and unintended consequences if rounding isn’t consumer-friendly.

Read the full article. The WSJ report is behind a paywall.

AXIOS: What Killing the Penny Means For You.https://t.co/xlYjLdoiXe

— Stan Prusinski (@StanleyPrusins1) May 25, 2025