Indiana cash rounding law
SB 243 / P.L. 128. Enacted Mar 5, 2026; applies Jan 1, 2027. Obligation: Obligates. Scope: Business entities including banks; government units.
Verified against enacted text: September 2, 2026. Primary source.
What a merchant must do
Indiana obligates business entities, including banks, and government units to round cash transactions to the nearest five cents. The operator chooses whether to round up or down. The rule applies to cash transactions occurring after December 31, 2026.
Tax base treatment
Rounding applies to the total including tax. Amounts added or subtracted to comply with the rounding chapter are excluded from gross retail income under IC 6-2.5-1-5(f), so the rounding adjustment is not itself taxed.
Mixed tender treatment
The rule attaches to the total amount of the transaction and the act contains no split-tender provision. Partly cash, partly electronic transactions are not addressed by the enacted text.
Liability protection
The act contains no express liability protection and no private-action safe harbor. Compliance obligations run through existing tax and regulatory channels.
Related references
- Cash rounding compliance: the category definition and its four failure points
- Legislation tracker: live status across all enacted and pending states
- Cash rounding exposure tool: compare Indiana against the other states you operate in
- Cash rounding laws by state: every enacted statute with citation, applicability date and obligation
- Tennessee cash rounding law: permits (safe harbor), a different obligation structure from Indiana
- Kentucky cash rounding law: obligates govt; permits retail, a different obligation structure from Indiana
- New Mexico cash rounding law: delegation, a different obligation structure from Indiana