After more than 230 years, the United States is preparing to retire the penny. In early 2026, the U.S. Mint will cease production of new one-cent coins. Don’t worry—your existing pennies will remain legal tender and can still be used or deposited, but once they are lost or damaged, they will not be replaced.

When the penny “retires,” it simply means no more will be minted. The final batch of penny blanks was ordered in May 2025, and those will become the last pennies ever produced. With an estimated 114 billion pennies still in circulation—about 700 for every American—it will take years before they completely disappear from daily use.

The penny has a long history as one of the first coins made after the U.S. Mint was established in 1792. Its most notable design change occurred in 1909, when Abraham Lincoln’s image was added, becoming the first U.S. coin to feature a real person.

The decision to stop producing pennies is mainly driven by economics. It now costs about 3.7 cents to make one penny—almost four times its face value. Halting production could save the government around $56 million annually. Meanwhile, fewer Americans are using cash. As card and digital payments become more common, pennies are playing an increasingly minor role in everyday transactions.

The U.S. is following other countries that have retired low-value coins, including Canada, Australia, and New Zealand. These nations round cash transactions to the nearest nickel, while electronic payments remain exact.

Once production ends, the U.S. is expected to implement a similar rounding system for cash transactions. For instance:

• $10.02 > $10.00
• $10.03 > $10.05
• $10.07 > $10.05
• $10.08 > $10.10

Sales tax might slightly affect totals, but state and local governments will likely issue rounding guidance.

If you have pennies, you can still use them, exchange them at your bank, or save a few as keepsakes. Pennies made before 1982 are mostly copper and might be worth more than their face value.

Retiring the penny is a practical move toward a modern, efficient monetary system that reflects how people actually pay today. While small change disappears, the value of your money—and its purchasing power—stays exactly the same.

If you have any additional questions about the retirement of the penny, please visit any of our branches or visit us online at coastalheritagebank.com.