Albany, NY (June 9, 2026)

New York lawmakers have approved legislation that would create statewide rules for cash transactions as the penny continues to disappear from everyday use.

The measure, known as the New Yorkers for Common Cents Act, passed the State Senate late last week after previously clearing the Assembly. It now heads to Gov. Kathy Hochul, who has until the end of the year to sign or veto the bill.

The legislation comes after the federal government stopped producing new pennies, citing a national shortage and production costs that had grown to several times the coin’s face value. While existing pennies remain in circulation, businesses and consumers have increasingly faced practical questions about how to handle exact change when pennies are unavailable.

If signed into law, the New York measure would require merchants to round cash totals to the nearest five cents. Totals ending in one or two cents would be rounded down, while those ending in three or four cents would be rounded up to a nickel. Totals ending in six or seven cents would be rounded down to five cents, while those ending in eight or nine cents would be rounded up to the next dime. Amounts ending in zero or five would remain unchanged.

The rounding rules would apply only to in-person cash payments. Purchases made by credit card, debit card, check, electronic transfer, or other non-cash methods would not be affected. Transactions of four cents or less would also be exempt.

Sales tax would still be calculated based on the original price before rounding, and merchants would not be allowed to impose additional taxes or fees tied to the rounding difference.

Supporters say the bill is intended to create clarity and consistency for businesses and shoppers as pennies become harder to find. Without statewide rules, retailers could be left to create their own practices, potentially leading to confusion at the register.

If approved by Hochul, the rounding provisions would take effect 180 days after the bill becomes law.