On May 12, 2026, Maryland enacted emergency legislation addressing penny rounding on cash transactions. The language details that if the price ends in 1 cent, 2 cents, 6 cents, or 7 cents, a business should round down to the nearest nickel. If the price ends in 3 cents, 4 cents, 8 cents, or 9 cents, a business should round up to the nearest nickel. For transactions totaling less than 5 cents, a merchant may round the price for a good or service up to 5 cents. Additionally, the definition of “taxable price” is amended to explicitly exclude the rounding amount from the sales tax base.
More information is available here.
