Penny Production Ends: Cash Rounding, Payments, & Real Estate Impact
Penny Production Ends — What Changes Now (and Why Homebuyers Won’t Notice)
The U.S. Mint officially ended production of new pennies today. The last one-cent coin intended for circulation was struck at the Philadelphia Mint, closing a 232-year run. The change aims to cut losses from a coin that costs far more than one cent to make. Existing pennies remain legal tender and plentiful; cash transactions may round to the nearest nickel, while digital payments are unchanged. For homebuyers and sellers, nothing about financing, closings, or mortgage math changes—real estate is already digital.
- What happened today: Circulating penny production ended; final circulation coin was struck in Philadelphia and archived.
- Why end it: Each penny costs ~3.7 cents to produce; ending mintage saves tens of millions in annual losses.
- Legal tender: All existing pennies remain valid indefinitely; an estimated hundreds of billions are already in circulation.
- Rounding rules: Cash purchases may round to the nearest five cents; credit, debit, and ACH still settle exact amounts.
- Collector note: Final commemoratives bear an “Omega” mark and will not circulate; they will be auctioned to collectors.
- Retail shift: Expect more exact-amount pricing online and in apps; cash drawers lean more on nickels and dimes.
- Real estate impact: None. Home purchases, escrows, taxes, and insurance rely on wires, checks, and ACH, not loose change.
- Macro effect: Economists expect negligible inflation impact from rounding; it is trivial next to mortgage and housing costs.
What ended today—and why it happened
Penny production for general circulation ended today to stop persistent losses on a coin that costs more than one cent to manufacture. Existing pennies remain valid for payment, banking, and change. For deeper context on coin programs and legal-tender status, review official U.S. Mint and Treasury pages, then return to our Resources library for local guidance on how consumer policy changes intersect with San Antonio housing.
- Cost dynamics: The Mint’s per‑unit cost routinely exceeded one cent, producing negative seigniorage and sustained budget leakage over many years.
- Policy decision: Ending new pennies reduces small, recurring losses without touching pricing freedom—businesses can still price to the cent.
- Supply reality: Hundreds of billions of pennies are already circulating; drawers won’t go empty overnight and banks will recirculate inventory.
- Continuity assured: Legal‑tender status remains; retailers and banks continue to accept pennies for deposits, payments, and coin‑counting.
What happens to existing pennies—and how checkout rounding works
Nothing changes about the legality of the coins you already have; they continue to spend. Cash registers may adopt rounding on cash change only—typically to the nearest nickel—while card and digital payments post exact amounts. To keep broader context actionable, we explain rounding examples below and link you to official guidance; then compare best‑practice budgeting inside our financing guide.
- Rounding scope: Rounding applies to the final cash balance at the register, not to listed prices or electronic payments.
- Neutral expectation: Over time, rounded cash totals skew up and down, netting out with minimal household budget impact.
- Digital precision: Online, card, ACH, and wallet payments keep cent‑level precision; your bank statements remain exact.
- Business choice: Merchants choose cash‑rounding policies; most follow nearest‑nickel conventions used in other countries.
San Antonio homebuyers and sellers—why this has zero impact
Real estate transactions rely on wires, certified checks, escrows, and automated tax prorations. Coins simply aren’t part of the workflow. That’s true for new builds, resales, and investment closings. To model how every dollar lands at signing, run your scenarios in our Mortgage Calculator and calibrate affordability in our Affordability Calculator.
- Exact settlement: Closing disclosures list exact cents; escrow, title, and payoff wires transfer precise amounts without register rounding.
- Rate & terms: Mortgage rates, underwriting, and lock math are unrelated to coin policy; lenders price to market fundamentals.
- Property taxes: County billing and escrow analyses compute to the cent via software; no cash handling is involved.
- Earnest funds: Deposits are via wire or cashier’s check; your settlement statement reconciles exact amounts digitally.
Collectors—final issues, older copper cents, and what might hold value
The final circulation‑intended strike is archived; special marked commemoratives are expected to sell through numismatic channels. Pre‑1982 cents have higher copper content and can command premiums by grade and demand. For deeper hobby details, read official Mint releases, then browse our LRG Blog for local collecting stories and market news.
- Final pieces: Expect marked, non‑circulating commemoratives to be sold directly to collectors rather than entering drawers.
- Older copper: Pre‑1982 cents remain collectible; values hinge on grade, mint mark, and scarcity, not melt content alone.
- Authentication: For high‑value coins, third‑party grading clarifies condition and marketability ahead of auctions or private sales.
- Provenance matters: Final‑day sets and documented ceremonial strikes typically draw stronger bids and collector interest.
Cash rounding examples at retail (cards remain exact)
Here’s how cash‑only rounding might look in practice. Note that sticker prices don’t change, and electronic payments don’t round. Use this as a quick reference while stores update drawer policies across San Antonio. For broader financial planning, compare neighborhoods on our Areas We Cover hub.
| Sticker total | Card / app total | Cash tendered | Cash change (nearest nickel) | Rounding direction |
|---|---|---|---|---|
| $12.01 | $12.01 | $13.00 | $0.99 → $1.00 | Up 1¢ |
| $7.02 | $7.02 | $10.00 | $2.98 → $3.00 | Up 2¢ |
| $15.03 | $15.03 | $20.00 | $4.97 → $4.95 | Down 2¢ |
| $9.04 | $9.04 | $10.00 | $0.96 → $0.95 | Down 1¢ |
| $23.06 | $23.06 | $25.00 | $1.94 → $1.95 | Up 1¢ |
Where pennies still show up—and what to do with jars at home
Pennies will linger in cash drawers, change bowls, and coin jars for years. Banks will accept deposits; some coin machines charge fees. Consider donating jars to local nonprofits. For move‑day cleanup tips and donation routes, connect with our LRG agents or reach us via Contact for neighborhood drop‑offs.
- Banking: Roll pennies or use no‑fee branch counters; request mixed‑coin exchange if your bank offers it.
- Coin kiosks: Machines are convenient but may charge; select e‑gift options if they waive fees.
- Donations: Local charities accept coin jars; many offer receipts for documented totals counted at a bank.
- Kids & classrooms: Keep a small stash for math games or coin‑identification lessons in schools and youth groups.
Real estate payments: channels, amounts, and whether rounding ever applies
Settlement math remains exact in real estate. The table below shows where money moves and which methods are standard. For a clearer picture of your next closing, explore our About Team LRG page and our Home Sale Calculator to estimate net proceeds before wiring instructions are issued.
| Payment type | Typical amount | Method | Rounding applied? | Notes |
|---|---|---|---|---|
| Earnest money | $1,000–$10,000+ | Wire or cashier’s check | No | Exact cents on receipt and trust ledger |
| Down payment | 5%–20%+ of price | Wire | No | Exact to the cent per CD |
| Closing costs | $5,000–$25,000+ | Wire or cashier’s check | No | Itemized; no cash handling |
| Mortgage payoff | Balance due | Wire | No | Calculated to the cent |
| Property taxes | Annual bill | Escrow or e‑payment | No | County software posts exact amounts |
The Bottom Line
The penny’s long run ended today, but daily life shifts only at the cash register—and even there, it’s minor. Your pennies still spend. Some stores will round cash change to the nearest nickel; electronic payments keep exact cents. Real estate—from offer to funding—stays fully digital and precise, so homebuyers and sellers won’t see any difference in closings, escrows, payoffs, or tax bills. If you’ve got jars of pennies, bank or donate them. Otherwise, carry on—your mortgage, budget, and move plans are unaffected.
Learn more on the U.S. Mint’s official pages for circulating coins and news releases, and Treasury’s legal‑tender guidance. For personal budgeting and housing decisions in San Antonio, keep using our LRG Blog and Property Search as you plan your next move.
FAQ's
Are pennies still legal tender after production ended?
Yes. Existing pennies remain legal tender indefinitely. Retailers and banks will continue accepting them for payments and deposits as drawers gradually rebalance inventory.
Will stores raise prices because of penny rounding?
No change is required to listed prices. Rounding typically applies only to the cash change due, with negligible budget impact over many purchases.
Do card or digital payments get rounded now?
No. Credit, debit, ACH, and payment apps continue to settle exact amounts. Bank statements and receipts remain precise to the cent.
What happens to the last pennies that were struck?
The final circulation‑intended piece is archived. Special marked commemoratives are expected to be sold to collectors rather than released into circulation.
Are older, copper‑rich pennies worth saving?
Possibly. Pre‑1982 cents can carry numismatic value depending on condition, mint mark, and demand. Premiums depend on grade and collector interest.
Will my property taxes or escrow statements change?
No. Counties, servicers, and title companies compute to the cent using digital systems. Real estate accounting never relies on coin availability.
Could rounding cause inflation in San Antonio?
Economists expect negligible impact. Rounding swings both directions and applies only to cash change, not to posted prices or electronic payments.
How should I handle coin jars at home?
Deposit at your bank, use a coin counter, or donate to a local nonprofit. Keep any machine fee in mind when choosing options.
Do I need to exchange pennies for nickels now?
No. Spend or deposit pennies as usual. Banks will recirculate coins for years, and retailers continue to accept them at the register.
Does this affect mortgage rates or home prices?
No. Mortgage pricing, underwriting, and housing values reflect credit markets and supply‑demand forces—not coinage policy or cash‑drawer rounding.
