AB 1793: California Merchants Must Round Cash Totals to the Nearest 5 Cents From July 1, 2027
What changed
AB 1793, the California Common Cents Act (Chapter 896, Statutes of 2026), requires merchants to round the cash-paid portion of a transaction to the nearest 5 cents starting July 1, 2027. The rounding is ignored when computing tax, fees and surcharges, and collecting more than the rounded amount carries the same remedies as overcharging.
Who it applies to
California merchants that accept cash (U.S. coins and paper currency) for goods or services.
Key dates
- Effective date:
- July 1, 2027
California Common Cents Act cash rounding becomes operative
What employers may need to do
- Set registers and point-of-sale systems to round the cash-paid portion of each transaction to the nearest amount divisible by 5 cents by July 1, 2027.
- Compute sales tax, fees and surcharges without the rounding adjustment.
- Never collect more from a cash customer than the rounded total the law permits.
Official source
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1793Detected by RegWatch monitoring on October 1, 2026. Always confirm details against the official source above — this page is a summary, not legal advice.
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