State Revenue Department Issues Guidance on Penny Discontinuation and Sales Tax Rounding Key Points
Date postedDecember 11, 2025
Key Points for Georgia Retailers- Penny shortages are expected, but the penny remains legal tender.
- Sales tax must still be calculated exactly based on the item’s sales price, following Georgia tax law—no changes to tax computation are permitted.
- When a cash transaction total cannot be tendered without pennies, dealers may round the total amount due to:
- the next lowest nickel,
- the next highest nickel, or
- the nearest nickel.
- Rounding applies only to the total amount due—not the sales tax.
- Dealers must remit the exact tax calculated before rounding.
Example Provided by the Department
- Item price: $199.99
- Tax at 7%: $14.00
- Total due: $213.99
- If rounded down to $213.95 for cash handling, the dealer still remits $14.00 in tax to the state.
Limit on RoundingThe Department emphasizes that rounding adjustments may not exceed four cents.
Looking AheadBecause this is an evolving issue at the federal level, the Department may update its guidance. Businesses are encouraged to monitor future announcements.The guidance document can be found HERE.
For more information, the Department can be reached at 1-877-423-6711 or dor.georgia.gov.