Florida is on the verge of a quiet but highly significant shift in the day-to-day lives of millions of consumers: the possible end of the penny’s practical use in cash transactions.
The state Legislature has approved SB 1074, a measure that would allow businesses to round cash payments to the nearest five cents.
In other words, if a total ends in 1 or 2 cents, it would round down; if it ends in 3 or 4, it would round up. And so on.
While the penny would remain legal tender, its everyday use in stores would begin to fade over time.
Why the change now?
The debate isn’t new, but it has picked up speed for one key reason: a shortage of pennies. According to officials and retail industry representatives, producing the coin has become increasingly inefficient, since it costs more to make than it’s actually worth.
On top of that, the decision to slow penny production in the United States in 2025 is said to have reduced circulation, creating headaches for businesses that still rely on cash.
Lorena Holley, vice president of the Florida Retail Federation, said the measure is intended to provide clarity and avoid legal disputes between consumers and businesses—especially under the state’s unfair trade practices law.
How it will work in stores
The change would apply only to cash payments. Credit cards, debit cards, and digital payments would not be affected.
Each retailer would also be able to decide whether rounding benefits the customer or the business, though the goal is for the impact to be minimal and to balance out over time.
Practical examples:
- $10.02 → $10.00
- $10.04 → $10.05
- $10.07 → $10.05
- $10.09 → $10.10
Taxes would still be calculated based on the item’s actual price, before rounding.
Impact on consumers and businesses
For many people, the change may barely register—but it represents a cultural shift in how we pay. It would be felt most in places where cash remains common, such as convenience stores and supermarkets.
Some experts warn that consumers who depend on cash—often lower-income residents—could feel this adjustment more in their daily routines. Others, however, argue that the differences tend to even out over time.
A global shift already underway?
Florida wouldn’t be the first to take this approach. Countries such as Canada and Australia have already phased out their lowest-denomination coins, using similar rounding systems without major negative effects on their economies.
That reinforces the idea that the penny may be entering its final years of relevance in the United States.
What comes next
The bill, known as SB 1074, “One-cent Piece,” is now awaiting Gov. Ron DeSantis’ signature, which could make it law in the coming days.
Florida would become one of the first states to formalize systematic cash rounding in response to the penny shortage, aligning with an international trend that could mark the beginning of the end for “exact” cash as we know it.
Whatever side of the debate you’re on, the shift seems inevitable: fewer coins in your pocket—and a new way of thinking about paying in cash.
