Gov. Bob Ferguson has signed HB 2334, supported by Washington Retail and sponsored by Rep. April Berg (D–Mill Creek), establishing clear rules for when businesses should round cash transactions up or down to the nearest five cent increment. With the federal government no longer producing pennies, there was no guidance on how retailers should adjust cash transactions as pennies are increasingly scarce. Washington has now created a predictable, statewide standard.
Under HB 2334, beginning June 11, 2026, retailers may round cash payments to the nearest nickel.
- Totals ending in 1 or 2 cents round down to 0
- Totals ending in 3, 4, 6, or 7 cents round to 5
- Totals ending in 8 or 9 cents round up to 10
Electronic payments, including credit, debit, and digital transactions, are not affected and continue to be calculated to the exact cent.
This new law provides long-needed clarity for both consumers and retailers. Businesses across Washington have struggled with persistent penny shortages and the rising cost of minting one-cent coins, which cost 3.7 cents each to produce in 2024, according to the U.S. Mint. HB 2334 offers a simple, consumer-friendly solution that reduces friction at the point of sale while maintaining transparency and fairness.
The new law also includes a safe harbor that protects retailers who follow the rounding rules in good faith from inadvertent violations of state or local laws, including existing rounding ordinances in Snohomish and King Counties.
With this change, Washington joins a growing number of states responding to the national penny shortage. According to Associated Press, states including Arizona, Florida, Oregon, Tennessee, Virginia, and Indiana have already adopted or advanced similar rounding policies as the federal government phases out the penny. Washington’s action places it among the early adopters of modernizing cash transaction rules to reflect today’s currency realities.
WR supported HB 2334 because it modernizes the state’s cash handling rules, provides predictability for businesses and customers, and strengthens the reliability of in-store transactions. With the Governor’s signature, retailers now have a clear, uniform framework for handling cash purchases in a world where pennies are increasingly impractical.
