The 1940 Reverse of 1938 Jefferson Nickel is worth anywhere from $1 in worn condition to over $6,000 for rare mint-state varieties. While most 1940 nickels found in pocket change are common, this specific “transitional” variety carries a significant premium for collectors looking for subtle design differences.

Condition	Estimated Value
Circulated / Average Wear	$1 – $5
Uncirculated (MS60-MS64)	$25 – $150
Gem Mint State (MS65+)	$300 – $1,500+
Full Steps (FS) Variety	$500 – $6,500+

Identifying the 1940 Reverse of 1938 Jefferson Nickel Variety

If you have just pulled a 1940 nickel from a jar, you might be holding a hidden treasure. In 1939 and 1940, the U.S. Mint updated the design of the Jefferson Nickel, particularly the steps on Monticello on the reverse side. The “Reverse of 1938” is often referred to by collectors as “FS-901” or the “Wavy Steps” variety. This was the original design used when the series debuted.

To spot this variety, you must look closely at the steps of Monticello. On the 1938 reverse, the steps are slightly blurry or “wavy” and do not have crisp, defined lines between them. In contrast, the updated 1940 design features straight, sharp steps. If you find a 1940-dated coin with those original soft, wavy steps, you have found a variety that is much scarcer than the standard issue.

Because these differences are hard to see with the naked eye, many beginners use a top coin identifier app to zoom in and verify the details. Using the CoinKnow app can help you distinguish between a common 1940 nickel and the valuable “Reverse of 1938” transitional variety instantly.

Current Market Prices for the 1940 Jefferson Nickel Variety

The value of this coin is dictated heavily by its grade and the presence of “Full Steps.” For a standard 1940 Jefferson Nickel with the 1938 reverse, even a circulated coin can fetch a few dollars, which is 20 to 100 times its face value. However, the real money is found in “Mint State” conditions—coins that look like they just came off the printing press.

In the world of professional coin grading, a coin rated MS65 or higher is considered “Gem” quality. For those looking for precise data, the current 1940 Jefferson Nickel auction prices show that high-grade examples can reach surprising heights at specialized sales.

Grade (MS)	Standard 1940 Value	Reverse of 1938 Value
MS63	$8	$45
MS65	$20	$185
MS66	$45	$600
MS67	$150	$2,450+

The Importance of “Full Steps” on 1940 Nickels

For Jefferson Nickel collectors, the holy grail is the “Full Steps” (FS) designation. This refers to the five or six clearly defined horizontal steps leading up to Monticello on the back of the coin. Because the striking process in 1940 was often mediocre, finding a coin where the steps are fully struck without any scratches or weakness is extremely rare.

The 1940 Reverse of 1938 with Full Steps is a major rarity. If you have a coin that looks pristine, take a magnifying glass and check those steps. If the lines are unbroken from left to right, you are likely looking at a four-figure coin. Checking the CoinKnow database can provide you with auction records of similar Full Steps coins to see what buyers are currently paying.

The combination of the wavy 1938 reverse design and a full strike is something that professional collectors hunt for in every estate sale and coin roll. You can find more detailed 1940 Jefferson Nickel value information regarding the Full Steps designation on specialized numismatic pricing sites.

How Mint Marks Affect 1940 Nickel Values

In 1940, the Jefferson Nickel was produced at three different mints: Philadelphia (no mint mark), Denver (D), and San Francisco (S). While the “Reverse of 1938” variety is most commonly discussed for the Philadelphia strike, it is important to check every coin regardless of its origin.

The mint mark is located on the reverse side, to the right of Monticello, next to the rim. San Francisco (S) minted coins generally had lower production numbers, making them inherently more valuable in high grades. However, for the specific 1940 Reverse of 1938 variety, the condition and the “wavy” design features are more important factors than the mint mark itself.

Mint Mark Location	Mintage Figure	Typical Value (Cull)
Philadelphia (None)	176,485,000	$0.05 – $0.25
Denver (D)	43,540,000	$0.10 – $0.50
San Francisco (S)	39,690,000	$0.15 – $0.75

Key 1940 Nickel Errors to Look For

Beyond the “Reverse of 1938” transitional variety, there are other errors that can make a 1940 nickel worth more than its weight in nickel and copper. Collectors love “Doubled Die” errors, where the coin is struck twice, leaving a ghosted image of the letters or numbers. Look closely at the date “1940” and the word “LIBERTY.” If you see overlapping lines, you have a valuable error.

Another common search is for “Off-Center” strikes. This happens when the blank coin (planchet) isn’t lined up correctly in the press. If your 1940 nickel is missing part of the design and has a crescent-shaped blank area, it could be worth $20 to $100 depending on how much of the date is still visible.

If you suspect you have an error, the CoinKnow app can be a life-saver. By comparing your coin to known error catalogs in the app, you can avoid the mistake of spending a valuable coin at the grocery store. Error coins are often the most exciting finds for everyday people because they look so different from normal money.

How to Care for Your 1940 Jefferson Nickel

If you find a 1940 nickel that looks shiny or appears to be the Reverse of 1938 variety, the most important rule is: Do Not Clean It. Many people think they are helping by scrubbing away dirt or using silver polish, but this actually ruins the coin’s value. Collectors want the original “patina” or surface of the coin. Even tiny microscopic scratches from a cloth can reduce a coin’s value by 90%.

Instead, handle the coin only by its edges. Place it in a PVC-free plastic holder or a simple cardboard “2×2” flip. This protects the surface from oils on your fingers and from moisture in the air. Keeping the coin in a cool, dry place ensures that its condition—and its value—remains stable for years to come.

Whether you are a casual hobbyist or someone who just found a weird-looking nickel in a parking lot, understanding the 1940 Reverse of 1938 Jefferson Nickel value is the first step into the rewarding world of coin collecting. With a bit of luck and a sharp eye, that old nickel might just pay for your next vacation.

FAQ

Q: How can I tell if my 1940 nickel is the “Reverse of 1938”?

A: Look at the steps on the Monticello building on the back. The Reverse of 1938 has “wavy” steps that look a bit blurry or melted together. The standard 1940 reverse has very straight, sharp, and clearly defined steps.

Q: Is a regular 1940 nickel worth anything?

A: A standard, circulated 1940 nickel without the “Reverse of 1938” variety or Full Steps is generally worth between $0.05 and $0.50. They are quite common, but they are still cool pieces of history!

Q: What is the most ever paid for a 1940 nickel?

A: Professional auction records show that a 1940 Jefferson Nickel (Reverse of 1938) graded MS67 with Full Steps has sold for over $6,000. Price depends entirely on the condition and the “Full Steps” designation.

Q: Where is the mint mark on a 1940 nickel?

A: The mint mark (D or S) is located on the reverse side of the coin, to the right of the Monticello building, squeezed between the building and the rim. If there is no letter there, it was minted in Philadelphia.