Florida Retail Federation celebrates new law allowing vendors to round sales prices to nearest nickel – Image for illustrative purposes only (Image credits: Unsplash)
The U.S. Mint stopped manufacturing pennies in 2025 for the first time since 1792, a change projected to save the Treasury $56 million annually. Florida responded by enacting a law that lets vendors round cash purchases to the nearest nickel. The measure, signed by Gov. Ron DeSantis, applies only to cash transactions and leaves electronic payments untouched. Retailers and consumers now face a simpler system for handling the smallest amounts in everyday purchases.
Why the Change Became Necessary
Penny production had continued uninterrupted for more than two centuries until the 2025 decision. Without new coins entering circulation, businesses increasingly found themselves short of pennies for making exact change. The Florida Retail Federation highlighted that every cent matters to both stores and households operating on tight margins.
The new statute provides a practical workaround without altering how sales taxes are calculated or collected. It also avoids any impact on non-cash methods such as credit cards, checks, or electronic transfers. Lawmakers designed the rules to maintain fairness while reducing the operational friction caused by the coin shortage.
Key Rules for Cash Transactions
The legislation specifies clear rounding guidelines based on the final digits of the total. Purchases ending in 1 or 2 cents round down to the nearest nickel, while those ending in 3 or 4 cents round up. Amounts ending in 6 or 7 cents round down, and those ending in 8 or 9 cents round up to the next higher nickel.
Only cash payments qualify for this treatment. Mixed tenders that include cash and another form of payment follow the same restriction, with rounding permitted solely on the cash portion returned to the customer. The framework ensures consistency across all retailers in the state.
| Final Cents | Rounds To |
|---|---|
| 1–2 | 0 cents (down) |
| 3–4 | 5 cents (up) |
| 6–7 | 5 cents (down) |
| 8–9 | 10 cents (up) |
Industry Reaction and Legislative Support
Scott Shalley, president and CEO of the Florida Retail Federation, praised the governor and bill sponsors for recognizing the daily realities faced by businesses. “Every cent counts for Florida retailers and families, and Gov. Ron DeSantis understands that,” he stated. The organization also thanked Sen. Don Gaetz, Rep. Toby Overdorf, and Rep. Fiona McFarland for advancing the measure.
Shalley noted that the law positions Florida as an example for other states confronting similar currency shifts. Retailers expect the change to streamline checkout processes and reduce the time spent counting and ordering pennies. Consumers, meanwhile, gain predictability in how small amounts are handled at the register.
Looking Ahead for Businesses and Shoppers
The statute took effect immediately upon signing, giving retailers prompt authority to implement the rounding system. Many stores have already begun updating their point-of-sale procedures to reflect the new guidelines. Training staff on the rules has become a priority to avoid confusion during transactions.
Over time, the policy may influence how other states address the long-term absence of pennies. Florida’s approach balances operational efficiency for merchants with clear protections for customers, setting a measured precedent in currency policy. As the transition continues, both businesses and residents will adapt to a nickel-based system for cash dealings.
