Author: Kimberly Gillmore, AAP, VP/Cashier/Bank Operations Officer

After more than 230 years, the U.S. Treasury announced it will retire the penny from circulation. Beginning early 2026, or as soon as the current inventory of penny blanks is depleted, the penny will no longer be produced.

Pennies are the most popular coin made by the U.S. Mint, which reported making 3.2 billion of them last year. That’s more than half of the new coins it made in 2024.

The decision was made because it costs more to manufacture a penny (3.7 cents to be exact) than the penny is worth. Ultimately, it would save the government $56 million a year. Fans of the penny want Americans to know that the nickel is almost 14 cents to mint.

As this news begins to set in, questions begin to arise, including the following:

How many pennies are out there?
An estimated 114 billion pennies are currently in circulation, but they are underutilized – remaining in coin jars, junk drawers, and leave-a-penny-take-a-penny dishes at store checkouts.

Can I still pay for things with pennies?
Pennies will still be accepted as legal tender, even after production ceases. However, as pennies become obsolete in the years to come, businesses that accept cash transactions may need to start rounding up or down to the nearest nickel.

Will financial institutions still accept pennies?
Yes, banks and credit unions will still accept pennies after 2026. Pennies will retain their face value and can be either deposited or exchanged for other currency.

Have other countries eliminated small coins?
Yes, other counties have eliminated small coins and have successfully transitioned to using rounding rules for cash transactions. Canada stopped producing its pennies in 2012, Australia eliminated its one- and two-cent coins in 1992, and New Zealand stopped making its smallest coins between 1990 and 2006.

It may be a bittersweet moment (especially for financial institutions alike); however, perhaps this significant change comes at a good time, as most people now use cards or apps to pay instead of cash.

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