Washington retailers who still handle cash got a new option on Thursday, June 11 after a new state bill passed.
House Bill 2334, one of more than 200 state laws that took effect that day, allows businesses to round cash transactions to the nearest nickel.
The rule is voluntary. Here's the math: if a cash total ends in 1, 2, 6, or 7 cents, round down. If it ends in 3, 4, 8, or 9 cents, round up. Card, debit, and digital payments are unaffected.
Rounding applies only to the final transaction total after all taxes and fees, not to individual item prices. Sales tax is still calculated on the pre-rounded amount, per the Streamlined Sales and Use Tax Governing Board. SNAP and EBT transactions remain charged to the exact penny; in split-payment scenarios, rounding applies only to the cash portion. Retailers who adopt rounding should see a "Roundoff Cash" line on receipts showing the adjustment.
Gov. Bob Ferguson signed HB 2334 in March 2026 with bipartisan support. The U.S. Mint ceased penny production on November 12, 2025, making the issue increasingly practical as coins leave circulation.
Canada eliminated its penny in 2013 using the same symmetrical rounding system. A University of British Columbia analysis found the net effect on grocery retailers was roughly $157 per store per year in their favor, driven by widespread ".99" pricing. For transactions of three or more items, the rounding averaged to zero. Surveys showed little inflationary effect.
Electronic payments accounted for an estimated 86.9% of all U.S. transactions in 2024, according to the National Conference of State Legislatures, meaning most sales nationally already bypass the issue.
Modern point-of-sale systems widely deployed in chain locations already support rounding options. Smaller or older systems common in independent shops may require software patches or upgrades. The Washington Department of Revenue has posted interim guidance at dor.wa.gov.
Neither the Ballard Alliance nor the Queen Anne Chamber of Commerce has issued public guidance to members on the new rule.
Business Week Ahead
- Saturday, June 13: Discover Queen Anne, all-day community event presented by the Queen Anne Chamber of Commerce, Queen Anne Community Council, and Queen Anne Historical Society.
- Effective Thursday, June 11: HB 2334 penny rounding rule. No phase-in period. Retailers may adopt immediately or continue making exact change while pennies remain available.
- March 2027: First payment deadline for Senate Bill 6182, a new health insurer assessment on Washington Health Benefit Exchange plans ($0.82 per enrollee per month in year one).