Florida Penny Shortage: Sales Tax Rounding Guidance

In November 2025, the US Treasury stopped producing pennies, causing their circulation to decline, though they remain legal tender. In response to the new circumstances, some Florida dealers began rounding cash transactions when exact change could not be made due to a shortage. 

Consequently, this resulted in compliance issues for these dealers with sales and use tax obligations, particularly in calculating the tax when the total amount is rounded. To address these issues, the Florida Department of Revenue provided guidance to dealers through its Tax Information Publication on how to act in such situations.

Rounding Cash Transactions and Calculating Sales Tax

The Florida Department of Revenue stated that dealers must calculate Florida sales tax and any local discretionary sales surtax according to current law, regardless of how the consumer pays. In cases where the exact change cannot be provided in a cash transaction due to the penny shortage, dealers may round the total amount up, down, or to the nearest nickel, provided the consumer is informed. In either case, the sales tax is still owed on the original sales price before any rounding is applied.

In addition to providing practical examples of rounding practices and how sales tax is calculated for those transactions, the Florida Department of Revenue also underlined that dealers must clearly disclose their rounding method for cash transactions with prominent signage in their businesses, and that all collected sales tax must be remitted according to law.

Furthemore, the Department of Revenue noted that, since this is an emerging issue under consideration at both federal and state levels, further changes in practices, by amendment to law or issuance of new policies, may affect this guidance.

Conclusion

The Florida Department of Revenue’s guidance provides a clear framework for dealers to remain compliant with sales and use tax obligations. Essentially, dealers should round responsibly, disclose methods to consumers, and continue to remit tax based on the original sales price. Nonetheless, as the Department of Revenue stated, further changes are possible. Therefore, taxable persons should continue to monitor for additional guidance not only at the state level but also at the federal level.

Source: Florida Department of Revenue