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Sharp Tax & Accounting Blog

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Michigan Issues Sales & Use Tax Guidance as the U.S. Phases Out the Penny
Michigan Richard Sharp 1/5/26 Michigan Richard Sharp 1/5/26

Michigan Issues Sales & Use Tax Guidance as the U.S. Phases Out the Penny

Michigan’s Treasury has issued new guidance on how retailers should handle sales and use tax calculations during the federal phase‑out of the penny. Businesses must still compute tax using statutory rounding rules, then apply any cash‑rounding to the final total. Rounding up or down is allowed and does not change the tax owed.

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