California penny rounding law
Mandatory symmetric rounding of in-store cash totals from July 1, 2027. Totals of 2¢ or less not rounded. Cash refunds rounded too.
Not in effect yet. California’s rounding law is not operative until July 1, 2027. Until then there is no statewide retail rounding rule. The calculator applies the current rule until July 1, 2027.
California cash rounding calculator
Enter a cash total, or item prices plus your sales tax rate. The result updates as you type.
The rounding rule
From July 1, 2027, a merchant shall round a cash total: totals ending in 1, 2, 6 or 7 cents are rounded down, and totals ending in 3, 4, 8 or 9 cents are rounded up, to the nearest amount divisible by five. A total of 2 cents or less is not rounded. Collecting more than the rounded amount is prohibited.
Who it applies to
Every “merchant” selling goods or services at a physical location in California. State and local government are not merchants under the act; a separate law, SB 1005 (Ch. 321, Stats. 2026, Gov. Code § 6158), lets a city, county or other local agency round cash payments and cash refunds to the nearest five cents if its governing body adopts a resolution.
Customer notice
AB 1793 does not require a customer sign.
Make a printable California cash rounding sign.
Sales tax
The rounding adjustment is disregarded when computing any tax, fee or surcharge (Civ. Code § 1789.63). The CDTFA may adopt regulations. More on sales tax and cash rounding.
What is not rounded
- Payments made entirely by check, electronic funds transfer, money order, credit or debit card, other electronic payment or cryptocurrency are not rounded.
- Mixed tender: the cash portion is rounded; the non-cash part is settled to the cent.
- Cash refunds are rounded the same way.
Pennies, enforcement and safe harbors
The act does not address whether merchants must accept pennies.
Charging more than the rounded amount carries the remedies and penalties of Business and Professions Code § 12024.2 (overcharging). Merchants that comply have a safe harbor.
The law
| Law | AB 1793, Ch. 896, Stats. 2026 (Civil Code §§ 1789.60–1789.67) |
|---|---|
| Signed | September 30, 2026 |
| Effective | July 1, 2027 (operative July 1, 2027) |
| Status | Law enacted, starts later |