By EXIT DESK
Published: September 22, 2026 at 8:11 p.m. ET
Updated: September 22, 2026 at 10:05 p.m. ET
New Jersey businesses may round cash transactions to the nearest nickel when penny supplies make exact change difficult, but the practice is optional and must be clearly disclosed before a customer incurs the charge.
When a store can round
State guidance says rounding should be applied only to the final transaction total, after taxes and fees have been added, and only when payment is made in cash. Businesses are not required to adopt rounding.
Card and other non-cash transactions are not covered by the cash-rounding guidance.
Sales tax does not get rounded
New Jersey says sellers must calculate and remit sales tax based on the actual purchase price regardless of the cash ultimately exchanged. The state’s example uses a taxable item priced at $39.99: tax remains based on $39.99 even if the final cash total is rounded.
Businesses still need exact accounting
For state business taxes, an amount gained by rounding up is treated as additional income, while an amount lost by rounding down reduces gross receipts or total income. In other words, the cash drawer can round while the books still account for the exact transaction.
What shoppers should look for
If a store uses rounding, look for a clear notice before checkout and make sure the adjustment is being made to the final cash total rather than individual prices or the sales-tax calculation.
