Need a penny for your thoughts? You might want to start charging more.

The U.S. government announced that it will soon halt production of the one-cent coin, citing ballooning manufacturing costs, as each penny now costs nearly four times its face value to produce.

Here’s what we know about the change and what to do with your remaining pennies.

Why is penny production ending?

The recent announcement follows an earlier one from President Donald Trump, who said in February that the production for the coin would end as a cost-saving measure for the national budget.

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Now, after 233 years of production, the production of the penny will come to an end, and the only ones available will be pennies currently in circulation.

As the penny is phased out, the nickel will become the smallest denomination used in cash transactions. While nickels are also produced at a loss — costing about 13.8 cents to make a coin worth only 5 cents — the penny is even more inefficient by percentage, costing 3.7 cents to produce a coin worth just 1 cent.

That means each penny costs 370% of its face value, compared to 276% for each nickel. And because the U.S. Mint produces roughly four times more pennies than nickels each year, the total budget impact of penny production is significantly higher — making it the more logical first step for elimination.

However, with the penny gone, the expected increase in nickel production could offset some of those savings by driving up overall coin manufacturing costs.

How many pennies are made each year?

In the 2024 fiscal year, around 3.2 billion pennies were manufactured

When does the production of the penny stop?

The last order for pennies has already been taken by U.S. mints, and the Treasury told multiple news outlets that pennies will stop being put into circulation early in 2026, according to the Wall Street Journal, CNN, MSN, and Business Insider.

Will removing pennies make prices more expensive?

As pennies are phased out, prices will start to change, with items being rounded up to the nearest nickel, meaning everything can be essentially 1 to 4 cents more expensive.

How can I tell if my pennies are worth anything?

A quick Google search can give you an idea of whether the coin you have is rare and if it could be worth anything. But if you have questions, you can also reach out to the American Numismatic Association. The nonprofit educational organization is dedicated to educating and encouraging people to study and collect coins and other items related to it.

Beyond doing your own research, the easiest way to see if your coin is worth anything is to get it appraised. You can find a list of recommended coin appraisers from the American Numismatic Association at coin-dealer-directory.money.org.

Will Texas businesses continue to accept pennies for payment?

Even after production stops, pennies will remain legal tender in the U.S. That means businesses can accept them for payment, and most will, especially as long as people still have them in circulation (which could be years).

If the total amount you’re paying is correct, and you use pennies to make up that cost, most businesses will take it, just like they would with any valid coin or bill. For instance, if you’re charged $10.05, and use five pennies, it’s likely most businesses will accept.

However, businesses are not required to accept any specific form of payment under federal law, including coins. Any business can opt for cashless-only payments, or even state, “we don’t take pennies anymore.”

What should I do with all my pennies?

Just because the U.S. is halting penny production doesn’t mean your jar of copper coins is worthless. Pennies will remain legal tender, so you’ve got several options for putting them to good use:

Cash them in: Most banks will accept rolled pennies, and coin-counting machines at grocery stores (like Coinstar) offer cash, gift cards, or donation options. Just keep in mind: some charge a fee for cash payouts.

Most banks will accept rolled pennies, and coin-counting machines at grocery stores (like Coinstar) offer cash, gift cards, or donation options. Just keep in mind: some charge a fee for cash payouts. Spend them: Pennies are still valid for transactions, so if you’ve got exact change, go ahead and use them, especially while they’re still in circulation.

Pennies are still valid for transactions, so if you’ve got exact change, go ahead and use them, especially while they’re still in circulation. Donate them: Local charities, schools, and community causes often accept spare change. A handful of pennies may not seem like much, but together, they can add up.

Local charities, schools, and community causes often accept spare change. A handful of pennies may not seem like much, but together, they can add up. Hold on to a few: With production ending, today’s common penny might become tomorrow’s nostalgic keepsake — or even a collector’s item.

Where is money made in the US?

Paper money is made by the Bureau of Engraving and Printing at two locations in Washington, D.C., and Fort Worth, which produces more than 60% of U.S. bills.

Coins are produced by the U.S. Mint at its locations in Philadelphia, Denver, San Francisco and West Point.

With the Treasuring Department’s plans to stop the production of pennies, the public might be wondering what this means for their giant coin collection at home.

Payments made with cash by American consumers decreased to 16% in 2023, according to the Federal Reserve, and for the first time in history was not the most-used instrument for smaller-value payments of $25 or less.

In February, President Donald Trump announced that he had ordered his administration to cease production of the penny, which costs almost 4 cents to create, according to the U.S. Mint. Ending penny production is expected to create an immediate annual savings of $56 million in reduced material costs.

The news has caused some pushback as fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint.

Circulation pathways for coins have declined as consumer coin jars continue to grow and have expanded by as much as 15% to 20%, according to a 2023 Federal Reserve report. In fact, the median household sits on $60 to $90 in coins which is the equivalent of one to two 16-ounce cups or a medium-sized piggy bank.

This is mostly due to the lack of utility of coins as a payment option as digital payments have grown since the COVID-19 pandemic, the Federal Reserve added.

“When asked why consumers do not redeem their coins more frequently, the most common answer was that it was not worth the effort to do so,” the institution’s report reads.

Rather than collecting dust, consumers could visit a coin exchange kiosk or bank to trade those coins for cash.

“People underestimate the value of their jar by about half,” Kevin McColly, CEO of Coinstar told Delaware Online. “It’s a wonderfully pleasurable experience. People have this sensation of found money.”

The coins can also be recyclables that can be reused in the monetary system, which lessens the amount of coins the Mint would have to create, McColly added.

Those are just natural resources coming out of the Earth,” he told Delaware Online adding that copper-plated zinc is used for pennies while copper-nickel alloys are for nickels, dimes and quarters.

When consumers pour their change into the Coinstar kiosk, there’s sometimes a small fee that can be waived if the depositor decides to trade in coins for a retail gift card rather than cash. Customers can also donate to their preferred charity, according to the company’s website.

Another option is exchanging coins at no cost by visiting a bank.

“You can go to your own bank or credit union and not pay any fee,” Personal Finance Expert at Nerdwallet, Kimberly Palmer told Delaware Online. “I think that a lot of people probably do have hidden coins stashed around their home, and it can be worth their time to go and collect them.”

Some pennies could be worth millions, including certain Wheat pennies valued at $2.3 million.

Those who believe they potentially own any type of rare coin can get it graded from services like the Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC).

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After more than two centuries clinking in pockets, lining dusty piggy banks and being flung into fountains along with a wish, the U.S. penny is preparing for retirement.

While digital transactions dominate the modern marketplace — with most estimates over 80 percent — the impact of the penny’s departure could come at a cost to consumers, with a disproportionate hit to lower-income consumers.

Worth just a cent but costing nearly four times that to produce, the fiscal riddle of the penny has long been a paradox of the federal government. President Donald Trump has instructed the Treasury to finally cease production of the coin, with the Mint putting in its final order for penny blanks earlier this month.

Yet the coming exit of the centuries-old cooper and zinc round coin, once stamped with a woman symbolizing liberty and now bearing President Abraham Lincoln’s solemn profile, may have a more outsized impact beyond the loose change drawer, particularly for those living near the economic margins.

Getting Rid of Pennies

The Treasury Department’s move to halt penny production isn’t unprecedented—other governments have already phased out their lowest-denomination coins. Canada made the move in 2012, Australia eliminated its 1- and 2-cent coins in 1992, and New Zealand has gotten rid of its 1-, 2-, and 5-cent coins. The U.S. has even retired a coin before, phasing out the half-cent piece in 1857.

So what happens without pennies, at least when cash is still the legal tender of choice?

Enter the nickel. The five-cent coin, which costs nearly 14 cents to make and distribute, is now poised to become the anchor of everyday pricing.

A close-up view of pennies, the U.S. one-cent coin minted for the past 230 years, New York, NY, May 27, 2025. A close-up view of pennies, the U.S. one-cent coin minted for the past 230 years, New York, NY, May 27, 2025. Anthony Behar/Sipa USA/AP Images

The actual “disappearance” of pennies in circulation is expected to take years, or even decades, according to economics professor Robert Whaples at Wake Forest University.

“It is estimated that there are about 700 pennies out there per every American,” Whaples told Newsweek, while other estimates vary between 300 and 600. The Treasury estimates there are around 114 billion pennies currently in circulation.

Whaples added that “stores will ask people to bring in their pennies when they run out. If they do, pennies could stay around for a long time,” possibly for years or even decades. “If not, it’ll take much less time. It may vary by region and retailer.”

Pennies are to remain legal tender even though production will be halted. They will still be accepted at banks and stores. The Treasury has said that stopping production of the coin will lead to an immediate annual savings of $56 million.

A Penny’s Worth?

“The idea that [pennies’ farewell] will be costless, is just dead wrong,” Raymond Lombra, professor emeritus of economics at Penn State told Newsweek.

The impact of the penny’s disappearance — a coin that barely circulates and spends most of its life cycle trapped in couch cushions, pocketbooks and jars — will be a “rounding tax,” that would be “regressive,” Lorna said, “as it would fall disproportionately on those at the lower end of the income and wealth scale.”

Lower-income Americans, as well as those in the country without legal status, are far more likely to use cash for transactions than credit or debit cards.

Over the years, the percentage of transactions conducted in cash has significantly dropped, with the average estimate now hovering around 20 percent. Most “unbanked households” in the U.S. operate with cash only, according to the Federal Deposit Insurance Corporation (FDIC). These cash-only, unbanked households are “disproportionately older, more likely to be Hispanic, and less likely to be Black compared to other unbanked households,” the FDIC says.

Approximately 4.5 percent of U.S. households were unbanked in 2021, with about six in 10 unbanked households in the U.S. relying entirely on cash, according to the agency.

Low-income households making less than $25,000 use cash for nearly a third of their purchases, whereas households with over $150,000 reported using cash for only 10 percent of their purchases, according to the Federal Reserve’s 2024 Diary of Consumer Payment Choice.

Phyllis Resnick, Colorado Futures Center’s lead economist, told Newsweek that the loss of the penny will become the “most burdensome on low-income households,” pointing to their purchases of lower-cost everyday items, such as groceries, as more likely to be affected by price rounding than luxury goods, where the impact is less noticeable.

“There is a saying in retail that you should never lose a customer over a penny,” Jeff Lenard, vice president media and communications at National Association of Convenience Stores (NACS) told Newsweek, adding that if pennies ever completely vanish and aren’t accepted at the point of sale, he “imagines retailers will accept them,” in order to avoid losing customers.

He said “convenience stores conduct about 160 million transactions a day” and given the growing prevalence of credit cards, “there are roughly 30 million cash transactions a day.”

Most cash transactions occur at grocery and convenience stores, fast food restaurants, coffee shops, gas stations, bars and small restaurants.

A cash register at the Point Roberts International Marketplace has two trays for both Canadian and U.S. currencies, Tuesday, March 18, 2025, in Point Roberts, Wash. A cash register at the Point Roberts International Marketplace has two trays for both Canadian and U.S. currencies, Tuesday, March 18, 2025, in Point Roberts, Wash. AP Photo/Lindsey Wasson

Rounding Rules and Sales Tax

The loss of the penny complicates pricing beyond simply rounding sticker prices, since most purchases involve multiple items and a sales tax calculated as a percentage, which often results in totals that still include cents.

Resnick noted that could lead to an “incremental bump to the sales tax” collection at the local and state level, explaining “if the price rounds up and the rate [sales tax] stays the same, every jurisdiction that collects sales tax is going to collect a little bit more.”

The Treasury has said that state and local governments should provide guidance on how to properly collect the sales tax.

Newsweek reached out to the Treasury Department for comment via email on Thursday.

Many businesses offer lower prices for cash purchases to avoid credit card processing fees, but with the penny on its way out, even those cash discounts could start to shift to the nearest nickel value.

The Treasury Department told The Wall Street Journal that businesses will need to start rounding up or down to the nearest 5 cents, a concept many economists believe will be enacted without much pushback. Under this premise, merchants will round up to the nearest nickel on purchases that end with 3, 4, 8, and 9 cents, while they will round down to the nearest nickel for purchases that end in 1, 2, 6, and 7 cents.

“Since the final digit is random there will be as much rounding up as rounding down,” Whaples told Newsweek, adding that despite many prices ending in 99 cents, “the last digit in the cash register total is random because people buy multiple items and/or taxes.”

However, Resnick said “its more likely things will round up, rather than round down.”

“I have no doubt that merchants will figure out ways to net round up,” Lombra echoed. “A penny here, a penny there, pretty soon it adds up.”

The federal government has officially made the first step to end the production of pennies.

The end of penny production marks a change in a 233 year tradition, as the penny was one of the first coins made after the U.S. Mint was established in 1792, according to its website.

A spokesperson for the Treasury Department confirmed to USA TODAY that the government recently made its final order of penny blanks, flat metal discs that become coins. The United States Mint will continue to produce pennies while the inventory lasts, but after the supply runs out, the production of United States pennies will end.

Here’s what to know about using pennies moving forward.

Why is the government discontinuing pennies?

Back in February, President Donald Trump ordered the Treasury to stop minting pennies because their production cost exceeds their value.

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote in a February post on Truth Social. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”

Elon Musk, head of Trump’s Department of Government Efficiency, said on X in January that penny production in fiscal year 2023 cost taxpayers more than $179 million.

According to the 2024 U.S. Mint report, it took 3.7 cents to produce and distribute one penny in fiscal year 2024 – meaning the government loses nearly three cents on every penny it mints. The 2024 cost was up by 20% from the previous year, partly due to rising costs of metals like zinc and copper.

Can you still use pennies?

Yes. Even after the government stops producing pennies, existing ones will remain legal tender.

However, retailers may choose to round cash transactions to the nearest five cents as the penny supply dwindles, as eventually, stores would not be able to get new rolls of pennies from their banks. While a bipartisan group of lawmakers formally introduced the rounding idea under The Common Cents Act on April 30, the decision of if and when to round transactions currently rests with the specific retailer rather than government policy.

Those who do not want to use their existing pennies can exchange coins for cash at a bank, credit union or coin-exchange kiosk.

When will pennies be out of circulation?

It is unclear how much longer the government will mint pennies before they run out of blanks. Additionally, there is an estimated 114 billion pennies currently in circulation, meaning that it will take a while before pennies are phased out of everyday use.

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What should I do if I have pennies I think are valuable?

While it is unlikely for a penny to be worth millions of dollars, some pennies are more valuable than others.

The most valuable pennies are “wheat pennies,” pennies from 1909-1958 with stalks of wheat encircling the “One Cent” text on the back of the coin. Most wheat pennies are worth a few cents, but depending on the condition and year of minting, they may be worth thousands. 1943 copper Lincoln wheat pennies, specifically, are worth $100-250k, according to rare coin expert John Feigenbaum.

If you think your pennies may be worth something, you can assess potential value through various apps or books like “The 2026 Red Book: A Guide Book of United States Coins”. Coins can also be authenticated at their value, just as jewelry is, from several services, including CAC, Numismatic Guaranty Company and Professional Coin Grading Service.

Daniel de Visé, Melina Khan and Mike Snider of USA TODAY contributed to this report.

So what happens to America’s 114B pennies once the US stops making them?

The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, the Treasury Department confirmed.

The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, the Treasury Department confirmed.

The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, the Treasury Department confirmed.

The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, the Treasury Department confirmed.

The American penny isn’t going anywhere anytime soon.

The US Treasury Department announced Thursday that it plans to start winding down production of the one-cent coin it has been minting for more than 230 years. But the penny will still remain legal tender, and will still be in use at thousands of retailers around the country for some time to come.

The video featured is from a previous report.

“If we look at the experience in Canada, for the first year after they stopped making pennies, there’s really no change in transactions,” Jeff Lenard, spokesperson for the National Association of Convenience Stores, told CNN. Convenience stores do more cash transactions than any other group, about 32 million a day, or about 20% of the total number of purchases by their customers, Lenard said.

RELATED: Treasury to phase out penny after Trump says coin no longer makes ‘cents’

The National Retail Federation, which represents most major US store chains as well as thousands of small retailers, also said it anticipates its members will use pennies even after production stops at some point early next year, although it does anticipate that many will round cash transactions to the nearest nickel once the supply of pennies at banks starts to run short.

“Retailers’ primary goal is serving customers and making this transition as seamless as possible,” said Dylan Jeon, senior director of government relations for NRF.

There are an estimated 114 billion pennies currently in circulation, but they are “severely underutilized,” according to the Treasury Department. Many are at home in coin jars or junk drawers, or some other forgotten location gathering dust.

The math says that all those pennies could fill a cube roughly 13 stories high. Many people don’t even take them as change, tossing them into the leave-a-penny-take-a-penny dishes at store checkouts.

RELATED: Getting rid of the penny could mean the need for more nickels, which costs even more money to make

Lenard said the large number of pennies in circulation means that retailers won’t necessarily run out of them for a while. But eventually, stores won’t be able to get new rolls of pennies from their banks and will start rounding transactions up or down to the nearest nickel. The decision on when to do that will rest with each retailer, not official government policy.

Electronic transactions such as credit and debit card purchases, will continue to be down to the penny, Lenard said, with only cash transactions being rounded.

Even in countries like Canada, where penny production has been discontinued, the penny remains legal tender today. Canada’s finance ministry said pennies retain their value for transactions “indefinitely” despite the fact that it stopped making the coin in 2012. If a customer wants to use pennies to complete a transaction, most retailers are likely to allow them, Lenard said.

“There’s a saying in retail, ‘Never lose a customer over a penny,'” he said. “I never really thought of it in these terms, but it applies even more here. I think if someone wants to pay with pennies, most retailers will err on the side of making those customers happy.”

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