08/13/2026
Are you a business owner in Missouri whose customers pay in cash?
Beginning August 28, 2026, Missouri businesses may choose to round cash transaction totals to the nearest nickel. This change is intended to simplify cash handling and reduce the use of pennies.
Here’s what you need to know:
• Rounding is optional. You are not required to use cash rounding.
• Rounding applies only to cash transactions. Credit cards, debit cards, checks, mobile payments, and other non-cash payments must be processed for the exact calculated amount.
• Rounding is applied only to the final purchase total, after all items, discounts, and sales tax have been calculated.
• Rounding Explained:
o Amounts ending in 1, 2, 6, or 7 cents round down to the nearest nickel.
o Amounts ending in 3, 4, 8, or 9 cents round up to the nearest nickel.
o For example, a $1.92 cash total becomes $1.90, while a $1.93 cash total becomes $1.95.
• Your sales tax calculation and reporting do not change. Sales tax must continue to be calculated and remitted according to the existing requirements. Rounding only affects the final customer-facing cash amount.
If you decide to implement cash rounding, you may want to review your point-of-sale system and update your employee procedures, so everyone is applying the rules consistently.
If you have questions about how this change may affect your business or need help understanding the accounting implications, please contact our office.
For specific questions about the Missouri law, you can also contact the Missouri Department of Revenue at 573-751-7200 or [email protected].
