Washington Enacts Law to Standardize Cash Transaction Rounding for Taxes

The Washington Governor signed a law which would allow businesses and state agencies to round in-person cash transactions to the nearest five-cent increment, eliminating the need for pennies while maintaining exact amounts for electronic and other non-cash payments. The law clarifies that taxes must be calculated on pre-rounded amounts and preempts local governments from regulating rounding practices differently than prescribed in the law. The law takes effect June 11. [H.B. 2334, enacted 03/23/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.