# How sales tax moves the rounding band

Tax decides which nickel a price lands on, so the band of prices that settle to the same cash amount moves with the rate.

**5 list prices between $19.98 and $20.02 all settle to $21.65 in cash at 8.25% tax. Listing at $20.02 instead of $19.99 collects exactly the same from cash customers and 3¢ more from every card customer. That is the only genuinely free move rounding offers, it is worth 3¢, and it evaporates if the tax rate changes.**

Free to take: **3¢**, at 8.25% tax.

| List price | Exact total | Due in cash | Rounding | Same band |
| --- | --- | --- | --- | --- |
| $19.94 | $21.59 | $21.60 | +1¢ | no |
| $19.95 | $21.60 | $21.60 | 0¢ | no |
| $19.96 | $21.61 | $21.60 | -1¢ | no |
| $19.97 | $21.62 | $21.60 | -2¢ | no |
| $19.98 | $21.63 | $21.65 | +2¢ | yes |
| $19.99 (yours) | $21.64 | $21.65 | +1¢ | yes |
| $20.00 | $21.65 | $21.65 | 0¢ | yes |
| $20.01 | $21.66 | $21.65 | -1¢ | yes |
| $20.02 (best) | $21.67 | $21.65 | -2¢ | yes |
| $20.03 | $21.68 | $21.70 | +2¢ | no |
| $20.04 | $21.69 | $21.70 | +1¢ | no |

Rows in the same band settle to the same cash amount. The cash collected is identical across the band, so the highest list price in it is strictly better — the difference comes from card customers, who pay the listed price to the cent. Pricing BELOW a nickel so that rounding "adds" a couple of cents is the same trade run backwards: identical cash, less on card.

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Canonical URL: https://penny-rounding.gumballtools.com/rounding/price-band-with-sales-tax
JSON API: `GET https://penny-rounding.gumballtools.com/api/v1/settle?subtotal=19.99&taxRatePercent=8.25`
MCP endpoint: `https://penny-rounding.gumballtools.com/api/mcp`