Effective April 17, 2026, Act 2026-548 authorizes the rounding of the total amount of any in-person cash transaction to the nearest five cents using the following method:

Effective April 17, 2026, Act 2026-548 authorizes the rounding of the total amount of any in-person cash transaction to the nearest five cents using the following method: If the final digit of the amount in the transaction is one or two, the final digit must be rounded down to zero. If the final digit is three or four, the final digit must be rounded up to five. If the final digit is six or seven, the final digit must be rounded down to five. If the final digit is eight or nine, the final digit must be rounded up to zero. If the final digit is five or zero, the final digit is not rounded. Does the rounding method alter the sales price? The rounding method does not alter the sales price, the amount of tax collected, or any other authority providing for the collection of sales tax, or any surcharges, assessments, or fees imposed on the sale. The rounding method may apply to the amount of the transaction or to the amount of change tendered to the purchaser. Does the rounding method apply to payment methods other than cash? No, the rounding method does not apply to any transaction if payment is made by a method other than cash, including electronic funds transfer, check, gift card, money order, or credit card. If the transaction is made using both cash and another form of payment, then the rounding method will only apply to the portion of the transaction amount that is paid using cash. Does the rounding method alter or impact any payment amount authorized? No, the rounding method does not alter or impact any payment amount authorized, cleared, or settled through any payment system that does not use cash. Does the rounding method apply to transactions where payment is made to agovernmental entity? No, the rounding method does not apply to transactions where payment is made to a governmental entity, which is any state or local agency located in the state. ContactSales and Use Tax Division334-353-7928 Download a pdf of this notice.