The rule that always rounds down
Indiana requires cash payments of state and local taxes to round down. It is a narrow provision about paying tax, not a retail rule.
Net effect per cash transaction
-2.6¢
Net effect: -2.600¢ per transaction, or -$26.00 per thousand cash sales, slightly favouring the customer. That is a property of the final digits of these 10 particular prices, not of the rounding rule, and it disappears if the price list or the tax rate changes. It is not a strategy.
Transactions
10
Rounded up
0
Rounded down
8
Unchanged
2
Per 1,000 cash sales: -$26.00
| Price | Exact total | Due in cash | Delta |
|---|---|---|---|
| $0.99 | $1.06 | $1.05 | -1¢ |
| $1.49 | $1.59 | $1.55 | -4¢ |
| $2.99 | $3.20 | $3.20 | 0¢ |
| $4.99 | $5.34 | $5.30 | -4¢ |
| $7.49 | $8.01 | $8.00 | -1¢ |
| $9.99 | $10.69 | $10.65 | -4¢ |
| $12.99 | $13.90 | $13.90 | 0¢ |
| $19.99 | $21.39 | $21.35 | -4¢ |
| $24.99 | $26.74 | $26.70 | -4¢ |
| $49.99 | $53.49 | $53.45 | -4¢ |
Run your own numbers
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Related examples
Not legal, tax, or accounting advice. Federal rounding legislation was not enacted as of September 2026, state law varies and is changing quickly, and a rounding practice that is lawful in one state may not be in another. This computes arithmetic under a rule you select; it does not tell you which rule applies to your business. Check your own state law and your own tax authority.