In Economic Action Plan 2012, the Government announced it would phase out the penny from Canada’s coinage system.
Important Date:
To help consumers, businesses, charities and financial institutions to plan, a transition date of February 4, 2013 has been set after which the Royal Canadian Mint will no longer distribute pennies.
On this date, businesses will be encouraged to begin rounding cash transactions.
More Information:
Dep. of Finance Canada: PHASING OUT THE PENNY
Important Info:
The cent will remain Canada’s smallest unit for pricing goods and services. This will have no impact on payments made by cheque or electronic transactions—only cash transactions will be affected. Moreover, pennies can still be used in cash transactions indefinitely with businesses that choose to accept them.
Rounding Guidelines:
| Amount | Round Down | Amount | Round Up |
| $1.01 or $1.02 | $ 1.00 | $1.03 or $1.05 | $1.05 |
| $1.06 or $1.07 | $ 1.05 | $1.08 or 1.09 | $1.10 |
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