Difference Adaptive Block Truncation Coding (DABTC) is a high efficient coding scheme and produces good quality for still images. At low bit-rates, however, block noise often appear in certain DABTC coded images. In this report. Floating Difference Adaptive Block Truncation Coding (F-DABTC) is proposed. The F-DABTC divides a picture into NXN sized blocks, and each line of blocks is floated randomly in the direction of the horizon. Because of floating, the visibility of block noise in certain DABTC coded images at low bit-rates can be reduced.