The Texas Comptroller of Public Accounts published an official Fiscal Notes article addressing the penny shortage's impact on Texas businesses and taxpayers. The guidance confirms that sales tax must be calculated on pre-rounded prices, cash tax payments to the Comptroller may be rounded down to the nearest nickel, and pennies remain accepted legal tender. The article reports that pennies depleted faster than anticipated despite 114 billion in circulation.
The Texas Comptroller of Public Accounts published "Our 5 cents: What Texans should know about the penny shortage" in its February 2026 Fiscal Notes publication, authored by Jenna Nyberg. The article provides official guidance for Texas businesses navigating the penny transition.
Texas-Specific Policy
The Comptroller's office clarified several key points for Texas businesses and taxpayers:
- Sales tax calculation remains on the exact, pre-rounded sales price — remittance requirements are unchanged despite point-of-sale rounding
- Cash payments to the Comptroller for certain taxes and fees may be rounded down to the nearest nickel
- Retailers may round cash transactions to the nearest nickel due to coin shortages
- Pennies remain accepted legal tender for all tax and fee payments
Faster-Than-Expected Depletion
Despite approximately 114 billion pennies in circulation at the time production ceased, the article reports that retailers experienced swift penny depletion — faster than prior estimates had suggested. The shortage materialized more quickly than the months-long timeline many had anticipated.
Production Cost Context
The article cites U.S. Mint data showing both low-denomination coins cost more to produce than their face value:
- Pennies: 3.7 cents to produce (3.7x face value)
- Nickels: 13.8 cents to produce (2.76x face value)
International Precedents
The Comptroller's office notes several countries that have successfully phased out their penny equivalents:
- Bahamas (2020)
- Canada (2012)
- Australia (1992)
- New Zealand (1987)
Early State Action
The article positions Texas alongside New York and Utah as among the first states to establish standards ahead of comprehensive federal guidance. With the Common Cents Act still awaiting a House floor vote, states are filling the regulatory vacuum on their own.