Florida is quietly phasing out the penny. The state Legislature has passed SB 1074, which would allow businesses to round cash transactions to the nearest five cents — down for totals ending in 1–2 cents, up for those ending in 3–4.
The penny isn’t being abolished outright — it remains legal tender — but its practical role at the register would effectively end.
The push comes largely from a shortage. The U.S. slowed penny production in 2025, reducing circulation and creating headaches for cash-dependent businesses. Manufacturing costs already exceed the coin’s face value, making continued production hard to justify.
Lorena Holley of the Florida Retail Federation said the bill aims to prevent disputes under state consumer protection law. Rounding would apply only to cash; card and digital payments are unaffected. Taxes would still be calculated on the actual pre-rounded price. Individual retailers would decide whether rounding favors the customer or the store — though proponents say it evens out over time.
Critics note that lower-income consumers who rely on cash may feel the change more. But Canada and Australia made similar moves without significant economic disruption, suggesting the transition is manageable.
The bill now awaits Governor DeSantis’s signature. If signed, Florida becomes one of the first U.S. states to formally adopt cash rounding — and likely not the last.
