Nov. 12, 2025 – The United States Mint has ended production of pennies for circulation.
While existing pennies remain in circulation and are legal tender, retailers may be considering rounding the amount collected on cash transactions to the nickel. A retailer that chooses to round the amount collected to the nickel must calculate Iowa sales tax on the taxable sales price. Rounding after calculation of the tax does not affect the amount of sales tax collected, reported, and remitted to the Department. When filing the sales and use tax return, retailers must report the amount of gross sales and sales tax before any rounding. This guidance applies only to Iowa sales tax; rounding may present issues other than Iowa sales tax that retailers may choose to consider before changing their business practices.