CA LegislaturePublished October 18, 2026

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=202520260AB1793

Detected 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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