Last updated December 4, 2025.

Are pennies being discontinued? There are economic reasons why the government wants to stop minting pennies, which will impact store prices.

The penny has been part of U.S. currency since 1793, but its future is uncertain. Many store owners wonder if the U.S. will stop making pennies and how that decision might change pricing and cash management. This guide explains what’s happening and how businesses can prepare.

the United States penny no longer being produced

Is The Penny Going Away?

On February 9, 2025, President Donald Trump announced that he had instructed the U.S. Treasury to stop producing new pennies. Then, on May 22, 2025, the U.S. Treasury confirmed this, citing that it expects an immediate annual savings of $56 million.

The U.S. Mint made its final order of penny blanks in May 2025 and produced the final penny on November 12, 2025. According to the Federal Reserve, some coin distribution locations have already ceased fulfilling penny orders, for both orders and deposits.

Pennies will remain legal to use for payments, but with no pennies entering circulation, businesses will need to adjust their prices to the nearest nickel.

Why Are Pennies Being Discontinued?

The strongest case for discontinuing the penny is cost. According to the U.S. Mint in its 2024 Annual Report, it costs close to four cents to produce a single one-cent coin.

Inflation has also erased the penny’s value. Decades ago, it could buy small items. Today, it rarely serves a purpose in transactions. For retailers and restaurants, pennies often slow down checkout lines, annoy customers, and create problems in cash-handling.

When Will The Penny Be Discontinued?

So, when will pennies be discontinued? The last penny was minted on November 12, 2025.

Countries like Canada, New Zealand, and Australia have already removed their lowest-denomination coins, showing a clear approach. If U.S. trends continue with production costs rising and fewer cash transactions overall, retailers should expect an eventual stoppage of pennies, even without an exact timeline. For store owners, the key is not whether the penny disappears, but how to prepare for the shift.

Explore what’s next for your industry in our restaurant industry trends and convenience store trends guides. 

Will Pennies Become Valuable?

If the penny goes away, will pennies become valuable? Some pennies could become more valuable, but not all. Basic pennies used every day will remain worth just one cent. However, rare coins often increase in value after circulation ends.

Collectors look for:

  • Mint year (older coins tend to be more valuable).
  • Rarity (coins with minting errors or limited production).
  • Condition (uncirculated pennies or those in pristine state).

How Discontinuing The Penny Will Affect Prices For Businesses

For retailers and restaurants, how will phasing out the penny affect pricing? The most common method is “rounding.” Cash transactions would round to the nearest five cents, while electronic payments can remain exact. That means:

  • $4.01 and $4.02 round down to $4.00.
  • $4.03 and $4.04 round up to $4.05.

Businesses like Kwik Trip, a Midwest chain of convenience stores, have already changed their pricing by rounding down all cash purchases to the nearest nickel/five cents. Their focus is on bettering the customer experience.

Countries that have eliminated their smallest coins, like Canada, report minimal long-term customer concern. Still, businesses may need to adjust POS systems and consider customer data. High-volume in-person businesses like retail, c-stores, and restaurants will feel the impact most.

With cash economic changes like this, it’s a reminder that cash still impacts businesses, and a modernized retail cash handling procedure improves efficiency.

Diagram of How Cash Management with ICL Works

See How ICL’s CashSimple® Cash Management Solution Streamlines Your Cash Handling

For store owners, the debate over pennies highlights a larger issue: cash management. Whenever the U.S. Mint stops producing pennies, businesses still need to process cash safely and efficiently. That’s where ICL’s CashSimple® cash management solution comes in.

CashSimple® automates key steps of the cash cycle from depositing, tracking, and reconciling cash, so your staff spends less time handling coins and bills. Unlike traditional credit models, it delivers real control over your cash without unnecessary risk.

With CashSimple®, businesses can:

  • Reduce shrinkage and theft risk.
  • Save labor hours by streamlining deposits.
  • Improve cash visibility across multiple locations.
  • Adapt easily to changes in cash denominations.

As pennies and small coins become less relevant, modern cash management keeps your business efficient and competitive.

Ready to future-proof your operations? Schedule a demo today.