Maryland Authorizes Rounding of Cash Transactions

The Maryland Governor signed H.B. 1026 authorizing merchants to round all transactions paid in cash to the nearest five cents. The law also amends the definition of “taxable price”, to clarify the exclusion from sales and use tax, certain amounts collected due to rounding the prices for goods or services. The law prohibits rounding that alters the calculation of applicable taxes or fees. The law took effect May 12. [H.B. 1026, enacted 05/12/26]