What Federal Reserve Bank of Boston Says About Penny Production Ending in 2026

How many times have you decided to pull out cash and pay the exact change at your favorite Dunkin in Boston or Portland? While we're often paying exact change to get rid of pennies, sometimes it's about not using your credit card.

But how many people actually use cash, and will this be a significant issue?

According to NPR, the U.S. Mint will produce one more round of pennies early next year and then permanently cease production of them.

There will still be $114 billion already in circulation, plus the new batch being minted in early 2026, so it's not as if they'll disappear.

However, since each penny costs nearly four cents to produce, this is supposed to save a significant amount of money. And when I say bunch, I mean around $56 million annually.

WHAT ENDING PENNY PRODUCTION MEANS FOR YOU

According to the Federal Reserve Bank of Boston, less than 20% of all transactions are made with cash. I know I rarely use cash, even though I make sure I always have some on me. What if there are tech issues with the credit card company or bank, you know?

Anyway, pricing on all the stuff we buy, from a pack of gum to a car, will have to be rounded up (or down) to five-cent increments. Obviously, this doesn't matter if you're using a credit or debit card, but since cash will always be legal tender, prices will have to change accordingly.

According to People Magazine, the penny has become pricier to produce, increasing from 1.3 cents each to 3.7 cents each.

The Treasury has said that state and local governments will be responsible for providing guidance to retailers so that sales taxes are properly collected.

According to the U.S. Mint, it lost $85 million producing 3 billion pennies in 2024.

PENNY HISTORY FUN FACTS

The U.S. rolled out the penny for the first time in 1793, more than 230 years ago. President Abraham Lincoln was the first president to be featured on a coin, which was the penny, starting in 1909. That was the centennial of his birth.

Pennies were 100% copper until 1857. Their composition slowly changed through the decades. The last change occurred in 1982, when they became 97.5% zinc and 2.5% copper plating.