FLORIDA CASH TRANSACTIONS AFTER THE PENNY: What Businesses Need to Know About Rounding and Sales Tax

The Penny Is Disappearing. What Happens Now?

In November 2025, the U.S. Treasury ended production of the penny. While pennies remain legal tender, businesses are increasingly facing situations where exact change cannot be provided for cash purchases.

To address this issue, the Florida Department of Revenue issued Tax Information Publication (TIP) 25A01-18, providing guidance on how dealers may round cash transactions when pennies are unavailable.

KEY STEPS TO COMPLIANCE:

DOCUMENT THE PAYMENT TYPE

Credit cards, debit cards, mobile payments, and other electronic transactions continue to be charged the exact amount due.

Only in-person cash transactions may be rounded when pennies are unavailable. It will be important to maintain documentation of the payment method.

IMPLEMENT PROPER CALCULATION TOOLS: SALES TAX IS CALCULATED FIRST

Businesses must continue to calculate Florida sales tax and any applicable discretionary sales surtax exactly as required under current law.

The transaction is rounded ONLY AFTER the sales price and tax have been calculated. The amount of tax due does not change because of rounding.

EXAMPLE

Transaction Amount

Taxable Sale $9.84

Sales Tax (7%) $0.69

Total Due $10.53

Rounded Cash Total Per Point of Sale System $10.55

 DISCLOSE YOUR ROUNDING POLICY

Businesses may choose to round down or round up to the nearest nickel.

However, customers must be notified of the business's rounding policy. Clear signage at the point of sale is recommended.

The dealer still reports and remits $0.69 of sales tax. The rounding adjustment does not change the taxable amount.

FLORIDA BUSINESS CHECKLIST

✅ Continue calculating sales tax normally

✅ Apply rounding only after tax is calculated

✅ Limit rounding to cash transactions

✅ Post a clear customer notice

✅ Maintain records showing the original transaction amount

Questions About Florida Sales Tax Compliance?

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