Alabama cash rounding law

H.R. 10167 has passed congress. It is not yet law, and it does not by itself change Alabama's enacted requirements below. Section 4 of the bill is a safe harbor for adherence to the federal rounding conduct it describes, not a blanket preemption of state law. See the Federal Cash-Rounding Standard for the pending federal framework and its current status.

Status: Monitoring. Verified against enacted text: September 2, 2026.

No specific guidance identified beyond what is cited on this page as of September 29, 2026. Monitoring for updates.

Alabama permits, but does not require, any person conducting an in-person cash transaction to round the total amount to the nearest five cents, with endings of 1 or 2 rounding down, 3 or 4 rounding up to 5, 6 or 7 rounding down to 5, and 8 or 9 rounding up. Transactions in which payment is made to a state or local governmental entity are excluded. Effective on enactment, April 16, 2026, under Act 2026-548 (HB 545).

Tax base is pre-rounded. The act provides that rounding does not alter the sales price, the amount of tax collected under Section 40-23-26 or any other sales tax authority, or any surcharges, assessments, or fees imposed on the sale.

Cash portion only. If a transaction is paid with both cash and another method, rounding applies only to the cash-paid portion. Transactions paid entirely by non-cash methods are excluded.

Authorization only. The act affirmatively authorizes rounding and directs the Department of Revenue to post notice of the authorization, but the enacted text contains no express civil-liability safe harbor or immunity clause.