Florida may soon see the beginning of the end for the penny in everyday cash transactions, after state lawmakers approved legislation allowing businesses to round cash payments to the nearest five cents.
The measure, known as Senate Bill 1074, would permit retailers to round totals up or down when customers pay with cash. If signed into law, the change could quietly reshape how millions of Floridians pay for everyday purchases, while the penny technically remains legal tender.
Under the proposal, totals ending in one or two cents would be rounded down, while those ending in three or four cents would be rounded up. The same pattern would apply to amounts ending in six through nine cents.
For example:
- $10.02 would round to $10.00
- $10.04 would round to $10.05
- $10.07 would round to $10.05
- $10.09 would round to $10.10
The rounding would apply only to cash transactions. Payments made with credit cards, debit cards, or digital methods would still be charged the exact amount. Taxes would also continue to be calculated based on the precise price before rounding.
Each retailer would be allowed to decide how rounding is applied, although advocates say the goal is to keep the impact minimal and balanced over time.
While the change may go largely unnoticed by many consumers, it could have a greater effect in places where cash payments remain common, such as convenience stores, small retailers, and supermarkets.
Florida would not be alone in adopting such a system. Countries including Canada and Australia have already phased out their lowest-value coins and implemented similar rounding practices without significant economic disruption.
The bill is now awaiting the signature of Gov. Ron DeSantis. If approved, Florida would become one of the first states to formalize cash-rounding practices in response to penny shortages — a move that could signal a broader shift away from exact cash pricing in the United States.
If the measure takes effect, consumers may soon find fewer coins in their pockets — and a new approach to paying with cash.
