When the Royal Canadian Mint officially ceased distribution of the penny in 2019, it marked the end of an era for Canadian currency—but what exactly should you do with the thousands of pennies still jingling in jars, drawers, and piggy banks across the country? This guide breaks down your practical, legal, and even profitable options for handling that copper hoard.
The Official Penny Phase-Out: What Happened
On February 4, 2019, the Canadian government officially stopped distributing the copper-colored coin. The decision came after years of escalating production costs—it cost 1.6 cents to produce each "costly copper." Despite their withdrawal from circulation, the Currency Act still recognizes all legal tender coins, including pennies, as valid currency.
Your Options for Handling Canadian Pennies
1. Spend Them (Yes, Really)
Banks and many retailers still accept pennies, though transactions are now typically rounded to the nearest five cents. You can haul that heavy jar to your local bank branch—many Canadian credit unions welcome bulk deposits. Just call ahead to confirm their coin-counting policies and any associated fees for large deposits.
2. Donate to Charity
Hundreds of Canadian nonprofits actively collect pennies. Organizations like Pennies for Pets (Ontario SPCA) and various food banks welcome these small-denomination donations. Pooling community pennies has raised significant funds for local causes while clearing space in your home.
3. Sell Collectible Specimens
Not all pocket change is equal. Pre-1997 pennies contain higher copper content, making them worth face value for collectors hunting for rare varieties. The famous 1936 dot penny—only three known specimens—commands five-figure sums. Check dates and mint marks before dumping entire jars.
4. Craft and DIY Projects
Canadian crafters have transformed pennies into everything from kitchen backsplashes to garden stepping stones. Their uniform size and color create striking mosaic patterns. Pinterest boards overflow with penny-embedded tabletops, coasters, and decorative frames that celebrate Canadian heritage.
5. Recycle Responsibly
Some scrap metal dealers accept pre-1997 "copper" pennies, though it remains illegal to melt Canadian currency. Instead, focus on the scrap value of non-copper post-1997 specimens. Verify current metal prices and dealer legitimacy before selling bulk quantities.
| Option | Effort Level | Potential Return |
|---|---|---|
| Banking deposit | Low | Face value |
| Collectible sale | High | Variable premium |
| Charity donation | Low | Tax receipt possible |
| Crafting/DIY | Medium | Sentimental/value-added |
Tax Implications and Record-Keeping
If you're claiming a charitable donation of pennies, retain receipts from registered Canadian charities. For significant collectible sales, document acquisition costs and sale prices—capital gains rules apply to investments in numismatic coins. The Canada Revenue Agency expects reporting of substantial windfalls, though typical household penny jars rarely trigger audits.
The Bigger Picture: A Cashless Canada?
The penny phase-out accelerated Canada's drift toward digital payments. Contactless transactions now dominate retail, and the Bank of Canada continues researching a potential digital loonie. Yet physical currency persists—especially in rural communities and among seniors. Your penny strategy should reflect whether you're optimizing for convenience, profit, or preserving tangible history.
Whatever route you choose, that jar of copper represents more than loose change. It's a piece of Canadian economic history, a potential small windfall, and a surprisingly versatile material waiting for its next chapter.
