Maryland Enacts ‘Penny Rounding’ Law Amid Coin Shortage — What Consumers Need To Know

ANNAPOLIS, Md. — A new Maryland law allowing retailers to round cash transactions to the nearest nickel took effect immediately last week following its signing by Gov. Wes Moore as an emergency measure.

The legislation, backed by the Maryland Retailers Alliance, is designed to address a growing shortage of pennies that has made it increasingly difficult for businesses to provide exact change in cash transactions.

According to a May 2026 tax alert issued by the Maryland Comptroller’s Office, the cessation of penny production “has created a penny shortage, making providing change for cash transactions difficult in some cases.”

How The Rounding Works

Under the law, retailers conducting cash transactions may round either the final price or the change due — but not both — to the nearest 5 cents when exact change is unavailable…

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