New Missouri Cash-Rounding Rules Take Effect August 28
A new Missouri law will allow retailers and other vendors to round the final totals of cash transactions to the nearest five cents beginning August 28, 2026.
The optional change is intended to simplify low-denomination cash handling while ensuring that sales taxes continue to be properly calculated and remitted.
How Cash Rounding Works
Rounding may be applied only to the final purchase total after all products, discounts and taxes have been calculated.
- Round down: Totals ending in 1, 2, 6 or 7 cents
- Round up: Totals ending in 3, 4, 8 or 9 cents
- No adjustment: Totals already ending in 0 or 5 cents
Examples
- A total of $1.92 may be rounded down to $1.90.
- A total of $1.93 may be rounded up to $1.95.
Important Information for Businesses
- Rounding applies only to cash transactions.
- Credit cards, debit cards, checks, mobile payments and other non-cash transactions must reflect the exact calculated total.
- Businesses are not required to round cash totals. Participation is optional.
- Rounding does not change how sales tax is calculated, reported or remitted.
- Businesses following the rounding rules in good faith receive protection from being considered in violation of state or local requirements.
Businesses choosing to use cash rounding may want to update employee procedures and point-of-sale instructions before the law takes effect.
Questions or Assistance
For additional information, contact the Missouri Department of Revenue at 573-751-7200 or salesuse@dor.mo.gov.
This information is provided for general informational purposes. Businesses should consult the Missouri Department of Revenue regarding their specific tax or compliance obligations.