Virginia cash rounding law

Virginia permits, but does not require, any person selling goods or services in a cash transaction, any party to a transaction involving the payment or transfer of cash, or an employer paying cash wages, to round the final cents digit of the total transaction amount to the nearest five cents, with endings of 1, 2, 6, or 7 rounding down and 3, 4, 8, or 9 rounding up. The permission applies statewide beginning July 1, 2026 under Va. Code 6.2-200.1 (Chapter 713).

Tax base is pre-rounded. Va. Code 6.2-200.2(A) requires all taxes, fees, and other charges to be calculated and remitted on the sales price or stated service fee before any cash-transaction rounding is applied. Rounding adjusts only the final payment amount.

Not addressed by the enacted text. The statute is framed around cash transactions and cash wages and contains no provision for transactions split between cash and electronic tender.

Express statutory safe harbor. Va. Code 6.2-200.2(B) provides that a person selling goods or services is not in violation of any state or municipal requirement, law, regulation, or standard based on actions taken in compliance with the rounding and pre-rounding tax calculation rules.