State Tax Day - Current, S.26, Washington—Sales and Use Tax: Excise Tax Calculations Not Impacted by Rounding of Cash Transactions Due to Elimination of the Penny, (Mar 25, 2026)

Washington has enacted legislation regarding the application of excise taxes to the price of cash transactions that have been adjusted due to the elimination of the penny. For in-person cash transactions that end in one cent, two cents, six cents, or seven cents, the final digit may be rounded down to the nearest amount divisible by five cents. For cash transactions that end in three cents, four cents, eight cents, or nine cents, the final digit may be rounded up to the nearest amount divisible by five cents.

Sales and use tax must be imposed on the selling price of goods or services without regard to any rounding applied. Furthermore, rounding of the amount of sales or use tax due is not permitted.

Business and occupation (B&O) tax does not apply to amounts received from rounding-up adjustments. No deduction is allowed for rounding-down adjustments.

For the enacted bill, see the legislative website.

H.B. 2334, Laws 2026, effective June 11, 2026