No more new pennies

[vdeane]

And with that, I guess this will also mean the end of prices ending in ".99" or anything that's not divisible by 5. Additionally, states will probably have to adjust their tax rates to conform to the new currency standards. In any case, RIP to the penny.

Why do people keep saying this?  Have you all never heard of sales tax?

[1995hoo]

And with that, I guess this will also mean the end of prices ending in ".99" or anything that's not divisible by 5. Additionally, states will probably have to adjust their tax rates to conform to the new currency standards. In any case, RIP to the penny.

I cannot imagine why that would happen. Consider the oft-cited example of gas prices being posted down to the mill. No US coin has ever been denominated as 1₥, and the last US coin to be denominated in an amount less than 1¢ (the half cent, worth 5₥) was discontinued in 1857, but the "9/10 of a cent" part of gas prices remains ubiquitous. If that's the case, why would sales taxes and other pricing remain any different?

[hotdogPi]

I've found that many places that don't charge sales tax, such as in-person sports tickets, craft fairs, yard sales, and clothing stands in tourist areas, already have round prices rather than prices ending in 9. I've even been to some independent stores that sell clothing that aren't just a "pop up" place and gotten a winter hat (I lose them often), and it's a round price. (Clothing isn't taxed in Massachusetts unless it's costly enough to be a luxury item, $110 as of about a decade ago but I don't know if it's been updated.)

[SP Cook]

We are currently witnessing one of those media driven panics, as the TV news types are all a titter about the "penny shortage".  Which of course does not exist, and, do the math, won't exist for a decade or more, when the penny will be yet more trivial in value. 

First, of course, anyone who uses cash (or works in retail) knows that most people don't want pennies.  Friend of mine works retail and says more than half of the tiny minority of people who pay cash just tell him to keep the pennies and he tosses them into those trays the cigarette companies give out for "take a penny, leave a penny".

But I was at the 7-11 and then at the local Burger King.  Both had panic signs about "exact change".  7-11's read "Due to the Federal Reserve decision to no longer mint pennies, we are having a acute shortage and must ask for exact change".

Umm, the Federal Reserve has nothing to do with the Mint, which is who decided this.  The last penny was minted yesterday, and it takes about 90 days for coins minted to make it to banks and then to stores.  Your bank can get you all the pennies you want, new or used.  Zero shortage.  Your bank will be able to get you (used) pennies for the next 20 to 30 years, in whatever quantity you wish. 

Most people pay with cards.  No issue.  The people that pay with cash will gain or lose a maximum of 3 cents one way or the other based on how they round up or down, which is trivial.   There is no need to change prices or get in complex discussions about sales taxes, which will remain just as they are now.

[1995hoo]

I did see an interesting point made on the news: Apparently the laws relating to SNAP benefits (formerly called food stamps) require that people using such cannot be charged any more than any other customer. Most people who receive SNAP benefits, in turn, receive them via a special debit card onto which the benefits are supposed to be loaded each month (the previous few weeks notwithstanding). That, in turn, raises an issue of how stores are to deal with the issue of rounding. If they round down for a cash customer whose total is, say, $120.02, but they charge the exact amount to people who pay with credit or debit, then potentially they're violating the federal law by charging the SNAP recipient more than the cash-payer whose total was rounded down.

Not surprisingly, that sort of thing wasn't thought through properly.

[kphoger]

I did see an interesting point made on the news: Apparently the laws relating to SNAP benefits (formerly called food stamps) require that people using such cannot be charged any more than any other customer. Most people who receive SNAP benefits, in turn, receive them via a special debit card onto which the benefits are supposed to be loaded each month (the previous few weeks notwithstanding). That, in turn, raises an issue of how stores are to deal with the issue of rounding. If they round down for a cash customer whose total is, say, $120.02, but they charge the exact amount to people who pay with credit or debit, then potentially they're violating the federal law by charging the SNAP recipient more than the cash-payer whose total was rounded down.

Not surprisingly, that sort of thing wasn't thought through properly.

I learned about it from Scott, nine posts before yours.

[kphoger]

I have five rolls of them in my closet at the moment, I just haven't cashed them in because the only bank I have an account at that will take them charges me a fee to see a teller, so I've been trying to save up enough to make the fee worth it.

Can your wife not simply cash them in at work?

From a casual Google search, it seems at least Silver Sevens, Palms, and Ellis Island all allow people to exchange coins for free.

[Scott5114]

Can your wife not simply cash them in at work?

Given her position, it would be improper for her to be seen at the cage. 

From a casual Google search, it seems at least Silver Sevens, Palms, and Ellis Island all allow people to exchange coins for free.

Well, my main reason for saving up coins in the first place is to make my credit union savings account balance go up, because that lets me pretend like I'm doing good in life (even if my paltry $42 worth of rolled coins or whatever doesn't even yield a single meal at a decent restaurant anymore). Right now I have to do something silly, which is drive to the bank my business account is with, deposit the coins there, and then transfer it to my credit union. Changing that to bills at a casino and then driving the bills to the credit union to deposit it feels even sillier.

Also, the fee is only 35¢, so driving even ½ mile out of the way to avoid the fee (and the Palms is a few miles past the bank) kind of defeats the purpose (the current IRS rate is 70¢/mile). I guess I could check the casinos closer to my house than the bank and see if I can come up with a routing that hits one of those and the credit union that's shorter than the trip to the bank would be.

Also also, having been a casino cashier, it's annoying to have to deal with gobs of incoming coins, even if company policy is to accept them.

Also also also, I received word that the bank is planning on selling its branches in Las Vegas to some other bank in 2026, so I may well not even have that fee anymore after that, since I have no reason to stay with this particular bank if it has no branches in my city.

[Jim]

Would a grocery store or department store not accept a roll of coins as part of a cash payment?  I could see them not wanting you to come in with a jug of pennies but a roll or two seems like it could actually be helpful to them.

Also, the coin star machine (I think that's what it's called) at the supermarket where I cashed in multiple jugs of mostly pennies and nickels and some other coins earlier this year gives full value if you take payment in the form of a gift card instead of cash on the spot.  So I just got a gift card from a store where I knew I'd be making plenty of purchases anyway.  I bet they had 100 or more options of stores that you could choose from.

On getting the correct change when paying cash, I, and I am sure many others, have been saying "don't worry about the pennies" or putting them in the take-a-penny-leave-a-penny tray for years.

[hbelkins]

For all the times I've eaten in Ohio, I've never noticed if I was charged tax for carryout or drive-through orders or not.

And, I wonder what will happen if the next occupant of the White House is of the opposite political party and decides to undo most of the current occupant's policies, which includes eliminating the production of the penny, just because the current occupant is who he is?

[Jim]

Looking to unload your pennies?  Bring them to a Price Chopper:

https://www.pricechopper.com/blog/market-32-and-price-chopper-introduce-double-exchange-day-to-turn-pennies-into-plenty/

[vtk]

And, I wonder what will happen if the next occupant of the White House is of the opposite political party and decides to undo most of the current occupant's policies, which includes eliminating the production of the penny, just because the current occupant is who he is?

Next president won't roll back everything DT has done, or even most of the things, as much as D party voters would like her/him to. (I'm restraining myself from saying more on the subject.) And this penny thing is the least-partisan, least-controversial thing he's done.

[NWI_Irish96]

And, I wonder what will happen if the next occupant of the White House is of the opposite political party and decides to undo most of the current occupant's policies, which includes eliminating the production of the penny, just because the current occupant is who he is?

Next president won't roll back everything DT has done, or even most of the things, as much as D party voters would like her/him to. (I'm restraining myself from saying more on the subject.) And this penny thing is the least-partisan, least-controversial thing he's done.

Yeah, I don't think the penny is coming back, nor should it.

[kalvado]

And, I wonder what will happen if the next occupant of the White House is of the opposite political party and decides to undo most of the current occupant's policies, which includes eliminating the production of the penny, just because the current occupant is who he is?

Next president won't roll back everything DT has done, or even most of the things, as much as D party voters would like her/him to. (I'm restraining myself from saying more on the subject.) And this penny thing is the least-partisan, least-controversial thing he's done.

Never underestimate the power of a real dwarf!

[oscar]

Would a grocery store or department store not accept a roll of coins as part of a cash payment?  I could see them not wanting you to come in with a jug of pennies but a roll or two seems like it could actually be helpful to them.

They'd probably want to open the roll, to check for slugs or foreign coins.

Also, while Federal law says that pennies are legal tender, merchants are not required to accept more than 50 pennies at a time. No such limit on other coins, which made it possible for a college classmate to pay her tuition in quarters.

[Rothman]

Would a grocery store or department store not accept a roll of coins as part of a cash payment?  I could see them not wanting you to come in with a jug of pennies but a roll or two seems like it could actually be helpful to them.

They'd probably want to open the roll, to check for slugs or foreign coins.

Also, while Federal law says that pennies are legal tender, merchants are not required to accept more than 50 pennies at a time. No such limit on other coins, which made it possible for a college classmate to pay her tuition in quarters.

My college library knew of no such limit when I paid a fine in unrolled pennies...

[kphoger]

Would a grocery store or department store not accept a roll of coins as part of a cash payment?  I could see them not wanting you to come in with a jug of pennies but a roll or two seems like it could actually be helpful to them.

I once paid for something with a roll of nickels as part of my payment.  I think it was a pizza.

[mgk920]

The last one was struck this past Wednesday in Philadelphia.

https://www.cleveland.com/news/2025/11/5-things-we-learned-from-the-us-mint-ending-penny-production.html

Back in May there was an announcement that the Tresasury Dept. (USMint)  would exhaust their supply of blanks in about Feb 2026.

 

Mike

[Road Hog]

What will happen eventually is everything that is priced .99 will be priced .95 or even to a round dollar.

Lotta good that does after sales tax is applied.

You conveniently snipped the last part of my post.

[Plutonic Panda]

What will happen eventually is everything that is priced .99 will be priced .95 or even to a round dollar.

Lotta good that does after sales tax is applied.

You conveniently snipped the last part of my post.

Creative snipping afoot here!

[Scott5114]

Would a grocery store or department store not accept a roll of coins as part of a cash payment?  I could see them not wanting you to come in with a jug of pennies but a roll or two seems like it could actually be helpful to them.

The problem with accepting rolled coin from customers is that you have no guarantee that the roll actually contains what it says it does. So you either have to crack it open and count it just like you would the jug-o-coins, or else accept the risk that when you do crack it open it'll throw your drawer off. (Granted, for a roll of pennies you're just talking 50¢, but a dishonest roll of quarters could theoretically put you off by more than $5, which where I worked as a cashier last was the threshold where you had to pay back any shortages.)

(However, short rolls can even happen when you get them from the bank. I was within earshot of the vault once when they discovered a roll of nickels had somehow gotten tangled in the bank's coin-rolling machine, so there was wadded up rolling paper taking up half of the roll. What was purchased for $2 actually contained 45¢.)

[GaryV]

What will happen eventually is everything that is priced .99 will be priced .95 or even to a round dollar.

Lotta good that does after sales tax is applied.

You conveniently snipped the last part of my post.

What, the part that said sales taxes would be adjusted to account for the price of an item? How does that work in practice? Somebody buys something for 95 cents, that means that the sales tax would have to be either 5 cents or 10 cents? So either 5.2% or 10.5%? Yet if someone buys something for $100 and the regular 6, 7 or 8% rate applies, the price comes out to an even nickel or dime. Sure, that'll fly.

[kphoger]

Would a grocery store or department store not accept a roll of coins as part of a cash payment?  I could see them not wanting you to come in with a jug of pennies but a roll or two seems like it could actually be helpful to them.

I once paid for something with a roll of nickels as part of my payment.  I think it was a pizza.

The problem with accepting rolled coin from customers is that you have no guarantee that the roll actually contains what it says it does. So you either have to crack it open and count it just like you would the jug-o-coins, or else accept the risk that when you do crack it open it'll throw your drawer off.

What I recall from the time I did it:  the cashier, with a grin on her face, said yes, she'd gladly accept the roll of nickels as payment.  She then cracked it open, did a quick check to make sure they were all nickels, and then concluded the transaction.

[kphoger]

What will happen eventually is everything that is priced .99 will be priced .95 or even to a round dollar. Governments will have to amend tax votes to change amounts from penny level to nickel levels. Gas stations will remove that archaic 9/10 cent pricing.

Lotta good that does after sales tax is applied.

You conveniently snipped the last part of my post.

What, the part that said ...

It was subtle, but the part you CS'd is the part that clued me in that his post was sarcastic from the beginning.  Initially, I made the same mistake as you did:  thinking that he was being serious.  I even had a reply in the making, till I realized his tongue was in his cheek.

(1)  Tax rates are not defined as "penny level" to begin with.
(2)  Gas station 9/10 cent pricing has nothing to do with the existence or removal of the penny.

[vdeane]

(1)  Tax rates are not defined as "penny level" to begin with.
(2)  Gas station 9/10 cent pricing has nothing to do with the existence or removal of the penny.

NY's sales taxes can be even worse than gas station pricing.  Where I live, the (state + county) sales tax rate is 8.25%, so an item that costs $1 would be $1.0825 after tax is applied.  Maybe we can make a half-mill coin.

That said, I could have sworn I've heard something about a "half cent sales tax" with respect to Arkansas highway projects, so I can't help but wonder if fixed-rate sales taxes are a thing in some places.  Might explain why we keep seeing posts along these lines.