Stores must round cash totals to the nearest 5 cents
When a customer pays fully in cash, merchants must round the total to the nearest 5 cents: totals ending in 1, 2, 6 or 7 cents go down, 3, 4, 8 or 9 go up. Card payments are not rounded; taxes use the unrounded price.
Who it affects
Merchants and cash-paying customers
When
This law takes effect on January 1, 2027; the changes described here start on July 1, 2027.
- : Signed into law
- : Law takes effect
- : The changes described here start to apply
Official text
California AB 1793: Cash payments: calculation.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.