1940 Jefferson Nickel Reverse of 1938 Value Guide

The 1940 Reverse of 1938 Jefferson Nickel is worth anywhere from $0.25 in worn condition to over $3,000 for high-grade specimens with “Full Steps” details. While most examples you find in pocket change are common, specific minting varieties make certain 1940 nickels highly prized by coin collectors and investors alike.

Condition	Estimated Value (USD)
Circulated (Average Wear)	$0.25 – $1.50
About Uncirculated (AU)	$2.00 – $5.00
Mint State (MS65)	$25.00 – $60.00
MS67 with Full Steps	$800 – $3,500+

Understanding the 1940 Jefferson Nickel Reverse Varieties

If you’ve recently stumbled upon an old nickel and want to know if it’s a hidden treasure, you should use the top coin identifier and value app to get an instant scan and identification. In the year 1940, the United States Mint was still transitioning between two different designs for the reverse (the back) of the Jefferson nickel. These are known as the “Reverse of 1938” and the “Reverse of 1940.”

The “Reverse of 1938” is characterized by “wavy” or “blurry” steps on Monticello. When Felix Schlag originally designed the coin, the steps on the building were not as sharply defined. In 1939, the Mint modified the design to make the steps straighter and more distinct, creating the “Reverse of 1940.” However, because old dies were still in use, some 1940 nickels were struck using the 1938 style.

Finding a 1940 nickel with the 1938 reverse is the standard for the Philadelphia mint that year, but spotting the difference is the first step in valuation. To ensure you aren’t missing a rare mint error or a high-grade strike, many hobbyists rely on CoinKnow to organize their collection and check for the latest market updates.

The Difference Between Reverse of 1938 and Reverse of 1940

Distinguishing between these two types is a rite of passage for nickel collectors. On the “Reverse of 1938,” the steps leading up to Monticello are soft and appear slightly curved or “wavy.” The corners of the steps are not sharp. In contrast, the “Reverse of 1940” features “Plain Steps” that are straight, crisp, and have very distinct edges.

Feature	Reverse of 1938 Style	Reverse of 1940 Style
Step Detail	Wavy, blurred lines	Straight, sharp lines
Rarity	Common for Philadelphia	Standard for later 1940
Collector Demand	High for Top Grades	High for Full Step Grades

While the visual difference is subtle, it significantly affects the 1940 nickel MS grade price trends among professional numismatists. Most casual observers won’t notice the difference without a magnifying glass, but if you want to be sure, the CoinKnow app can help you zoom in on these specific metallic details.

1940 Jefferson Nickel Value by Mint Mark

The value of your 1940 nickel also depends heavily on where it was made. In 1940, nickels were struck at three locations: Philadelphia (no mint mark), Denver (D), and San Francisco (S). To find the mint mark, look at the reverse of the coin, specifically to the right of Monticello, next to the rim.

Philadelphia minted the largest quantity, nearly 176 million coins. Because of this massive production, a standard 1940 Philadelphia nickel in circulated condition rarely sells for more than a few cents over its face value. However, high-quality uncirculated versions are much scarcer.

Denver and San Francisco produced far fewer coins (about 43 million and 39 million respectively). While not “rare” in the traditional sense, they carry a slight premium over Philadelphia coins in mid-range conditions. If you are looking for accurate 1940 Jefferson nickel value and history information, you must first identify that tiny letter on the back.

The Importance of “Full Steps” Grading

In the world of Jefferson Nickel collecting, “Full Steps” (FS) is the holy grail. This designation is given by grading services like PCGS or NGC to coins that show at least five or six fully separated lines on the steps of Monticello. Most nickels from 1940 were struck with worn dies, meaning the steps are usually mushy or blended together.

A 1940 nickel with Full Steps can be worth hundreds or even thousands of dollars more than a coin of the same grade without them. For example, a standard MS66 1940 nickel might be worth $30, but the same coin with a “Full Steps” designation could fetch $500.

Collectors use CoinKnow to track auction results for these specific FS designations. If you think you see clear, distinct lines on your nickel’s steps, it is definitely worth getting evaluated by a professional or using a high-resolution coin app to verify the strike quality.

Mint Mark	Mintage	Average Value (Uncirculated)
1940 (P)	176,485,000	$15 – $25
1940-D	43,540,000	$20 – $40
1940-S	39,690,000	$25 – $50

Common Errors and Rare Varieties to Look For

Beyond the “Reverse of 1938” and “Reverse of 1940” distinction, the 1940 nickel series is known for several interesting mint errors. These errors occur when something goes wrong during the manufacturing process, and because they are unique, they are highly collectible.

One popular error is the “Double Die Reverse” (DDR). If you look closely at the lettering on the back—specifically the words “MONTICELLO” and “FIVE CENTS”—you might see a faint doubling of the letters. Another common find is the “Re-punched Mint Mark” (RPM) on Denver or San Francisco coins, where the “D” or “S” appears to have been struck twice, often slightly overlapping.

Die cracks and “cuds” are also frequently found on 1940 nickels. These appear as raised lines of metal on the surface where the coin die began to break apart. While minor cracks don’t add much value, large, dramatic errors can turn a 5-cent coin into a $100 treasure. Always check your coins for these “mistakes” before spending them!

How to Care For and Protect Your 1940 Nickels

If you discover that your 1940 Jefferson Nickel is in high-grade condition or features the Reverse of 1938 with Full Steps, you must handle it with care. Oils from your skin can cause “toning” or corrosion over time, which can actually lower the coin’s value.

Never clean your coins. Even a soft cloth can leave microscopic scratches that professional graders will notice immediately. Cleaning a rare coin can reduce its market value by 50% or more. Instead, hold the coin by its edges and place it in a PVC-free flip or a plastic coin capsule.

For those just starting out, using a digital portfolio like CoinKnow helps you keep track of what you have without constantly touching the physical coins. Keeping them in a cool, dry place ensures that the luster and detail that make the 1940 nickel so beautiful remain intact for decades to come.

Condition Factor	Impact on Value
Original Luster	Very High (Increases Price)
Scratches/Dents	High (Decreases Price)
Cleaning Marks	Extreme (Significant Decrease)

FAQ: 1940 Jefferson Nickel Value

Q: Is a 1940 nickel made of silver?

A: No. Standard 1940 Jefferson nickels are composed of 75% copper and 25% nickel. The famous “War Nickels” containing 35% silver were only produced between late 1942 and 1945.

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

A: The mint mark is located on the reverse (tails) side, to the right of the Monticello building, near the rim. If there is no letter, it was minted in Philadelphia. A “D” stands for Denver, and an “S” stands for San Francisco.

Q: How much is a 1940-S nickel worth?

A: A 1940-S nickel in circulated condition is typically worth between $0.50 and $2.00. However, in pristine uncirculated condition (MS66 or higher), it can range from $40 to over $100 depending on the strike quality.

Q: What does “Reverse of 1938” mean?

A: It refers to a specific die variety where the steps on the Monticello building are struck using the original 1938 design, which features slightly curved and less defined steps compared to the updated 1940 design.