Canada stopped making pennies in 2012 because each cost 1.6 cents to produce, about $11 million a year. A US penny cost 3.69 cents in fiscal 2024.
Canada stopped making the penny because every new one lost money. "It costs the Government 1.6 cents to produce each new penny, which exceeds the penny's face value by 0.6 cents," Budget 2012 said. Supplying pennies to the economy cost about $11 million a year.
How Canada's penny ended
- March 2012: Economic Action Plan 2012 announced the penny would be phased out.
- May 4, 2012: the last Canadian penny was struck at the Royal Canadian Mint's plant in Winnipeg.
- February 2013: the Mint stopped distributing pennies to financial institutions. It had made the coin for Canada since 1908.
- The government estimated the ongoing savings at $11 million a year.
The Mint said all of Canada's other circulation coins cost "well under face value" to produce, thanks to its plated steel technology.
Pennies still count
The penny kept its value. You can still spend pennies with businesses that accept them, or redeem them. For cash payments, totals are rounded to the nearest 5 cents: amounts ending in 1, 2, 6 or 7 cents round down, and 3, 4, 8 or 9 round up. Cheque, card and other electronic payments are still charged to the exact cent.
The US penny cost even more
- 3.69 cents: the US Mint's total cost to make and ship one penny in fiscal 2024.
- 13.78 cents: the same cost for one US nickel.
- Both coins cost more than their face value for the 19th fiscal year in a row, the Mint reported.
The US Treasury says the federal government has since stopped making new pennies. Existing ones stay legal tender.
Sources
- Budget 2012, Annex 1: Responsible Spending (Government of Canada)
- Budget 2012 backgrounder, Frequently Asked Questions: Consumers (Government of Canada)
- Government of Canada and the Royal Canadian Mint Bid Farewell to the Canadian Penny (news release, February 2013)
- Royal Canadian Mint, first quarter report, fiscal 2012
- US Mint financial statements, fiscal 2024 and 2023 (Treasury Office of Inspector General audit)
- US Treasury, Penny Production Cessation FAQs
