The penny has been discontinued as a circulating coin. The U.S. Mint struck its final penny for circulation on November 12, 2025, after the cost of making each one rose to 3.69 cents. Existing pennies remain legal tender and can still be spent, but with no new supply, many stores now round cash totals to the nearest nickel.
Key Takeaways
- The U.S. Mint struck its final circulating penny on November 12, 2025, at its Philadelphia facility, ending a 232-year production run.
- The cost of producing one penny rose from 1.42 cents to 3.69 cents over the past decade, according to the Mint.
- Pennies remain legal tender, and the Mint estimates about 300 billion are still in circulation.
- Ending penny production is expected to save the Mint about $56 million a year.
- Cash rounding to the nearest nickel applies only to cash payments and does not change the sales tax owed.
- Rounding rules vary by state, with new laws taking effect in Missouri on August 28, 2026, and Connecticut on January 1, 2027.
When the Penny Was Discontinued and Why
The last penny made for everyday use was struck on November 12, 2025, at the U.S. Mint’s Philadelphia facility, where U.S. Treasurer Brandon Beach pressed the final circulating one-cent coin. The ceremony marked the official end of the penny’s 232-year run as a circulating coin, a history that began with the Coinage Act of 1792.
The Treasury Department directed the Mint to halt circulating production in 2025, citing cost. The Mint pointed to economic and production factors, combined with changing consumer behavior, as the reasons continued production had become unsustainable. With fewer people paying in cash and more transactions moving to cards and phones, demand for new pennies had fallen while the cost of making them climbed.
How Much It Costs to Make a Penny
The economics drove the decision. According to the U.S. Mint, the cost of producing each penny rose from 1.42 cents to 3.69 cents over the past decade, meaning every new penny cost more than three times its face value to make. Ending circulating production is expected to save the Mint about $56 million a year.
Can You Still Use Pennies After the Penny Was Discontinued
Yes. Ending production did not take pennies out of the economy. The Mint has confirmed that the penny remains legal tender, so pennies can still be spent at stores and deposited at banks at their full face value.
There is also no shortage of pennies overall. The Mint estimates that about 300 billion pennies are still in circulation, far more than commerce requires. Businesses can also keep pricing goods and services in one-cent increments; the change affects only how cash totals are settled when exact change runs short.
The Mint will continue producing penny versions in limited quantities for collectors and historical purposes, but these are not made for everyday spending.
Why There Is a Penny Shortage at Some Stores
Although hundreds of billions of pennies exist, many sit unused in jars and drawers rather than moving through stores. With no new pennies entering circulation, some stores have reported running short of the coins they need to give exact change in cash transactions.
That gap is what pushed rounding into the spotlight. When a store cannot hand back exact change in pennies, it needs a consistent way to settle a cash total, and the most common answer has been rounding to the nearest nickel.
How Penny Rounding Works for Cash Purchases
Most rounding policies use a method called symmetrical rounding. Cash totals ending in 1, 2, 6 or 7 cents are rounded down to the nearest nickel, while totals ending in 3, 4, 8 or 9 cents are rounded up. Totals already ending in 0 or 5 stay the same.
Two rules are consistent across most guidance. Rounding applies only to cash payments; card and other non-cash transactions are still charged to the exact cent. And rounding does not change sales tax, which is calculated on the exact purchase price before any rounding is applied.
Penny Rounding Rules Vary by State
There is no single nationwide rounding rule. In December 2025, the Treasury published guidance for businesses and the public, but it recognized that states would need to clarify their own laws to allow rounding to the nickel. Since then, states have moved at different speeds and in different ways. Some make rounding optional for retailers, while others set specific requirements, and some have had to address conflicts with existing laws that bar charging cash customers more than card customers.
New laws continue to take effect. Penny rounding legislation took effect in Missouri on August 28, 2026, and takes effect in Connecticut on January 1, 2027. Because the rules differ by location, cash customers may see different rounding practices from one state, or even one store, to the next.
FAQs
Is the penny discontinued?
The penny has been discontinued as a circulating coin. The U.S. Mint struck its final penny for circulation on November 12, 2025, though the Mint still makes limited collector versions.
How much does it cost to make a penny?
According to the U.S. Mint, it cost 3.69 cents to produce one penny when production ended. That was up from 1.42 cents a decade earlier.
Can you still use pennies in 2026?
Yes. Pennies remain legal tender and can be spent or deposited at full face value. About 300 billion are estimated to still be in circulation.
Are pennies still legal tender?
Yes. The U.S. Mint has confirmed that the penny remains legal tender even though circulating production has ended.
Why is there a penny shortage?
No new pennies are being made for circulation, and many existing pennies sit unused rather than moving through stores. As a result, some stores have reported running short of pennies for making exact change.
