State Requirement Profile

    Washington cash rounding law

    SHB 2334 / Ch. 138. Enacted Mar 23, 2026; applies Jun 11, 2026. Obligation: Permits. Scope: General retail; in-person only.

    Verified against enacted text: September 2, 2026. Primary source.

    Federal baseline

    H.R. 10167 has passed congress. It is not yet law, and it does not by itself change Washington'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.

    Review 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.

    What a merchant must do

    Washington permits, but does not require, sellers and state agencies to round the total price or change due of an in-person cash transaction to the nearest five cents, with endings of 1, 2, 6, or 7 rounding down and 3, 4, 8, or 9 rounding up. Non-cash tender is excluded, and a customer may always pay the exact unrounded price with exact legal tender. Effective June 11, 2026 under SHB 2334 (Chapter 138, Laws of 2026).

    Tax base treatment

    Tax base is pre-rounded. Sales and use tax are calculated and remitted on the pre-rounding price, and the act expressly states that nothing in it authorizes rounding the amount of sales tax due. B&O tax treatment of rounding differences is separately clarified: round-up excess is not gross income, and round-down amounts are not deductible.

    Mixed tender treatment

    Cash portion only. In mixed-tender transactions rounding applies only to the portion paid in cash and must not alter the exact amounts authorized, cleared, or settled through any noncash payment system.

    Liability protection

    Two express protections. No action taken in compliance with the rounding section violates any state or municipal requirement, law, regulation, or standard. Separately, a rounding-caused inconsistency with a displayed or advertised price is not actionable under the Consumer Protection Act (chapter 19.86 RCW), a narrow carve-out limited to price-display mismatches. Rounding regulation is declared a matter of statewide concern, preempting local ordinances that restrict or penalize lawful rounding.

    Related references

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