A new state law is now in effect that gives Alabama businesses added flexibility at the register. On April 16, Governor Kay Ivey signed Alabama Act 2026-548 into law, allowing businesses to round cash transactions to the nearest $0.05. The law took effect immediately and comes in response to the U.S. Treasury’s decision to halt penny production and the growing difficulty retailers face in maintaining adequate coin supply.

To help retailers communicate this change clearly to customers, the Alabama Retail Association has developed a downloadable cash rounding notice sign that can be printed and displayed at your register or point of sale. We encourage businesses choosing to implement rounding to post clear signage to ensure transparency and consistency.

DOWNLOAD CASH ROUNDING NOTICE SIGN

Under Act 2026-548, cash rounding is permissible, not mandatory. Retailers may adopt this practice or continue using their existing procedures. For those who choose to implement rounding, the law provides a straightforward framework: once the full purchase total, including tax, is calculated, the amount is rounded to the nearest five cents.

Totals ending in 1, 2, 6, or 7 cents → rounded down.
Totals ending in 3, 4, 8, or 9 cents → rounded up.

This applies only to cash transactions and does not impact credit, debit, or other electronic payments.

AL DEPARTMENT OF REVENUE NOTICE