November 10, 2025
The Utah Division of Consumer Protection acknowledges the challenges businesses may be facing due to the current penny shortage. In consultation with the Utah State Tax Commission and Department of Government Operations, we’ve issued clear guidance to help you navigate this issue seamlessly and in compliance with state law.
Essential Guidance on Cash Rounding
Cash rounding is a temporary solution applicable only to cash purchases where change is required after the total amount due (price plus tax) has been calculated.
While businesses can choose their rounding methodology, we recommend the following method to ensure fairness and consistency:
- $0.01 or $0.02 round down to $0.00.
- $0.03 or $0.04 round up to $0.05.
- $0.06 or $0.07 round down to $0.05.
- $0.08 or $0.09 round up to $0.10.
If you choose to adopt this method for cash rounding, please feel encouraged to post this useful flyer conspicuously at any point of sale:
Key Compliance Rules
- Taxes Come First: Please note that cash rounding only occurs after all applicable taxes have been calculated and applied to the sale price.
- Remit All Taxes: Regardless of rounding, all charged taxes must be remitted as required by law.
- Provide Notice: Businesses must clearly and conspicuously disclose their rounding method for cash purchases through prominent signage, such as posting a notice near cash registers or entrances. The Division has prepared a printable flyer explaining the recommended rounding method to assist you.
Thank you for helping Utah maintain its reputation for having the best state economy in the country.
For questions, please contact Consumer Protection at 801-530-6601 or consumerprotection@utah.gov.
