Massachusetts recently published Directive 26-1, which provides guidance on how sales tax must be calculated following the elimination of the penny. With the U.S. Treasury minting its last penny on November 12, 2025, vendors have begun rounding cash transactions to the nearest nickel. However, vendors are required to calculate and remit sales tax based on the exact sales price prior to any rounding. Rounding a transaction up or down to the nearest nickel does not change the sales tax owed.
For the full text of Directive 26-1: Elimination of the Penny – Effect on the Collection of Sales Tax click here.
