Cottage Food Law in 2026: How to Start a Home Food Business Legally

Cottage food laws are the reason you can sell banana bread at a farmers market or ship cookies to a customer without renting a commercial kitchen. Nearly every state now has some form of cottage food law, but the details vary so much that advice written for one state is often wrong in the next. One state caps your sales at under $90,000 while its neighbor allows $250,000; one allows shipping, another requires you to hand-deliver; one bans anything that needs refrigeration, another now allows it. This guide explains how cottage food laws work, compares four of the largest states (California, Texas, Florida and New York), and covers labels, online sales, taxes and pricing for a home food business in 2026. Rules were checked against state statutes and agency pages in October 2026.

Quick answer

Cottage food laws let you make low-risk foods, such as baked goods, candy, jams and dry mixes, in your home kitchen and sell them without a commercial food license, as long as you stay within your state's list of allowed foods, sales cap, labeling rules and sales channels. Some states require registration or a permit; others require none.

• California: Class A (direct sales) up to $88,878; Class B (also through shops and restaurants) up to $177,756 in 2026

• Texas: cap raised to $150,000 from September 1, 2025, and many refrigerated foods now allowed with registration

• Florida: no permit, $250,000 cap, internet and mail-order sales allowed, no wholesale

• New York: free home processor registration; sales within New York only

• Every label needs a state disclosure statement and the nine major allergens, including sesame

How cottage food laws work

A cottage food law carves out an exception from the rules that normally apply to anyone who makes food for sale. Ordinarily, a bakery or jam maker needs a licensed commercial kitchen, inspections and a food establishment permit. Cottage food laws let you skip that for foods that are unlikely to make people sick, because they're dry, high in sugar or acid, or otherwise don't support bacterial growth at room temperature.

Food safety agencies call the risky category time and temperature control for safety (TCS) foods, sometimes "potentially hazardous foods." These are foods that must be refrigerated or kept hot to prevent pathogen growth: meat, poultry, seafood, dairy, cooked rice and vegetables, cream and custard fillings, cheesecake and most foods containing them. Nearly every state excludes TCS foods from its cottage food law. Texas, since its 2025 expansion, is the notable exception.

Within that framework, each state decides five things:

1. Which foods are allowed. Some states publish an approved list (California); others allow any non-TCS food (Florida); New York lists allowed and prohibited items in detail.
2. How much you can sell. Annual gross sales caps range from modest to generous, and some states have no cap.
3. Where and how you can sell. Direct to consumers only, or also through shops and restaurants; in person only, or online with delivery or shipping.
4. Whether you need to register. From nothing at all to a county permit with an inspection.
5. What goes on the label. Always a disclosure that the food was made in a home kitchen, plus standard federal label elements.

Cottage food laws cover only sales within the state. Selling across state lines puts your product into interstate commerce, where federal food law applies and your state's exemption doesn't help you, so most cottage food operators should plan to sell only to customers in their own state unless the state's rules and their own legal advice say otherwise.

Cottage food rules in four large states (2026)

	California	Texas	Florida	New York
Sales cap	Class A $88,878; Class B $177,756	$150,000	$250,000	None stated
Registration	County registration (A) or permit (B)	Only for TCS foods or to hide your address	None	Free state registration
Refrigerated (TCS) foods	No	Yes, with registration (some excluded)	No	No
Online orders	Yes, direct sales	Yes, but personal delivery	Yes	Yes, within NY
Shipping	Mail delivery allowed for direct sales	No (personal delivery only)	USPS or commercial carrier	Within NY only
Selling through shops	Class B only	Via registered cottage food vendors (non-TCS)	No wholesale	Yes, to local restaurants and grocers
Training	Cottage food operator training	Food handler course	Not required	Not required

Sales cap

California

Class A $88,878; Class B $177,756

Texas

$150,000

Florida

$250,000

New York

None stated

Registration

California

County registration (A) or permit (B)

Texas

Only for TCS foods or to hide your address

Florida

None

New York

Free state registration

Refrigerated (TCS) foods

California

No

Texas

Yes, with registration (some excluded)

Florida

No

New York

No

Online orders

California

Yes, direct sales

Texas

Yes, but personal delivery

Florida

Yes

New York

Yes, within NY

Shipping

California

Mail delivery allowed for direct sales

Texas

No (personal delivery only)

Florida

USPS or commercial carrier

New York

Within NY only

Selling through shops

California

Class B only

Texas

Via registered cottage food vendors (non-TCS)

Florida

No wholesale

New York

Yes, to local restaurants and grocers

Training

California

Cottage food operator training

Texas

Food handler course

Florida

Not required

New York

Not required

California: Class A and Class B

California's cottage food law, the California Homemade Food Act, creates two classes of cottage food operation (CFO). The California Department of Public Health maintains the Approved Cottage Food List, but it doesn't register anyone: you register or get a permit from your county or city environmental health department, which also sets the fee.

Class A operations sell directly to the public. That includes orders taken by phone, online or through other digital channels, and a direct sale can be fulfilled in person, by mail or through a third-party delivery service. Class A operators register with their local agency and generally aren't routinely inspected, though inspections can follow a complaint.

Class B operations can also sell indirectly, through restaurants, cafes, markets and other permitted retail food businesses. Class B requires a permit and an initial inspection, and your county may inspect annually.

Both classes have CPI-adjusted sales limits. The statute set them at $75,000 for Class A and $150,000 for Class B in 2022, and CDPH adjusts them every January. For 2026, the limits are $88,878 for Class A and $177,756 for Class B in verifiable gross annual sales. A CFO can have no more than one full-time-equivalent employee, not counting family or household members, and you must operate in the home where you live.

Other California requirements: complete a cottage food operator training course within three months of registration or permitting; make only foods on the Approved Cottage Food List, which includes items such as baked goods without cream or custard fillings, candy, dried fruit, jams and jellies that meet standards, nut mixes, granola, dried pasta, popcorn and fruit pies; follow the state's sanitation rules; and label every product. CDPH amends the list from time to time. In October 2026 it posted a notice proposing to add chocolate and nut spreads, with a revised list expected around November 16, 2026, so check the current list before adding a product.

California's label must show the words "Made in a Home Kitchen" in 12-point type on the principal display panel, along with your registration or permit number and the county that issued it, your business name, city and ZIP code, the product name, ingredients, net quantity in both US and metric units, and allergen information.

Texas: the SB 541 expansion

Texas rewrote its cottage food law with Senate Bill 541, effective September 1, 2025. It's now one of the most permissive laws in the country, and many websites still describe the old rules.

What you can sell. Instead of a list of allowed foods, Texas now lists what you can't make: meat and poultry products, seafood, ice and ice products (including ice cream and popsicles), low-acid canned goods, products containing CBD or THC, and raw milk products. Everything else is allowed, including many TCS foods such as cream pies or cheesecakes, as long as you follow the extra rules for them.

How much. The annual gross income cap rose from $50,000 to $150,000, and the statute tells the Department of State Health Services (DSHS) to adjust it annually for inflation using the CPI-U. As of October 2026, DSHS's page still shows $150,000, so check it for any adjustment.

Registration. Most Texas cottage food operators don't need any license. Local governments, including city and county health departments, can't require a permit or fee to produce or sell cottage food directly to consumers. Registration on the DSHS Online Licensing Registry is required only if you sell TCS foods. You can also register voluntarily to put a DSHS identification number on your labels instead of your home address.

TCS foods. If you sell foods that need refrigeration, you must register with DSHS, store and deliver them at temperatures that prevent bacterial growth, add the date the food was made to the label, and include this statement, in at least 12-point type, on the label or on an invoice or receipt: "SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption."

Where you can sell. You can sell directly to consumers, and you can now sell non-TCS foods at wholesale to cottage food vendors, registered businesses that resell your products at farmers markets, farm stands, restaurants and retail stores. Vendors must display a sign with the cottage food disclosure. Online orders are allowed, but the operator, an employee or a household member must personally deliver the food, and you must post the required labeling information on your website before accepting payment. Shipping isn't part of the Texas model.

Labels and training. Every label needs your name and address (or DSHS number) and this disclosure: "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." The operator must also complete an accredited food handler course; DSHS accepts a food manager certification in its place.

Texas after SB 541 — which path applies to you?

Step 1

Non-TCS foods sold direct: no license or registration

Step 2

Optional DSHS registration

to replace your address with an ID number

Step 3

TCS foods

DSHS registration, date made, safe handling statement

Step 4

Wholesale to cottage food vendors

non-TCS only; vendor registers

Florida: no permit, a $250,000 cap and mail order

Florida's cottage food law, section 500.80 of the Florida Statutes, is short and generous. A cottage food operation is exempt from food permitting if it sells only non-TCS foods and has annual gross sales of cottage food products of no more than $250,000. That cap counts all cottage food sales at every location, regardless of product type or how many people are involved, and the Department of Agriculture and Consumer Services (FDACS) can ask you for written records proving your sales.

You can sell and take payment online or by mail order, and products can be delivered in person, to an event venue, or by the US Postal Service or a commercial carrier. You can't sell at wholesale, so stores and restaurants can't resell your products. You must store your products in your home.

Florida preempts local regulation of cottage food: a city or county can't ban a cottage food operation or regulate how you prepare, store or sell cottage food, although you still have to follow the state's conditions for home-based businesses, such as limits on outside employees and parking. FDACS doesn't routinely inspect cottage food operations; it can investigate after a complaint.

The Florida label must include your name and address, the product name, ingredients in descending order by weight, net weight or volume, allergen information under federal rules, nutrition information if you make a nutrition claim, and this statement in at least 10-point type in a contrasting color: "Made in a cottage food operation that is not subject to Florida's food safety regulations."

New York: home processor registration

New York calls cottage food producers home processors. You register with the Department of Agriculture and Markets by submitting a home processor registration request by email or mail. There's no fee, the registration doesn't expire, and it's tied to your address, so you must reapply if you move. If your home uses a private well, you must include a recent water potability test from a certified lab.

New York's allowed list includes breads, rolls, muffins, cookies, cakes and cupcakes without homemade buttercream or cream cheese frosting, brownies, double-crust fruit pies, high-acid fruit jams and jellies, fudge, popcorn, brittle, granola and repackaged dried herbs and spices. The prohibited list is long: anything that needs refrigeration, no-bake items, pickles, sauces, dressings, dairy and cheese, meat and fish, beverages, nut butters, cheesecake, cream pies, tempered chocolate for dipping, and canned or cooked fruits and vegetables.

You can sell at farms, farmers markets and craft fairs, by home delivery, online, and at wholesale to local restaurants and grocers, but only within New York. The department says shipping products out of state isn't permitted. Products must be packaged at home, not at events. Labels need the product name, ingredients by predominance, net quantity, your name and full address, allergens, and a statement such as "Made in a Home Kitchen" in type at least 1/16 inch high.

Cottage food launch checklist

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• Read your state's cottage food statute or agency page (not a blog summary)
• Confirm each product is on the allowed list or isn't excluded
• Register or get a permit if your state requires one
• Complete any required food handler or cottage food training
• Check city zoning and home-based business rules
• Design labels with the exact state disclosure and all nine allergens
• Register for sales tax if your products are taxable in your state
• Track gross sales monthly against your state's cap

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Labels: what every cottage food label needs

Labels are where most cottage food operators get into trouble, because they're the part an inspector or a customer can check at a glance. Requirements differ by state, but nearly all labels need:

• The common name of the product, such as "Chocolate chip cookies."
• Your business name and address, or a state registration number where the law allows it (Texas does; California requires the permit number as well as your name, city and ZIP).
• Ingredients in descending order of predominance by weight, including the sub-ingredients of anything you buy (chocolate chips, flour, sprinkles).
• Net quantity, by weight, volume or count. California asks for both US and metric units.
• Allergens. Federal law recognizes nine major food allergens: milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soybeans and sesame. Sesame was added by the FASTER Act and has been required since January 1, 2023, so check older label templates that list only eight.
• The state's exact disclosure statement in the required type size.

Avoid health or nutrition claims such as "low fat," "keto" or "gluten-free" unless you understand the federal rules behind them; a claim can trigger nutrition labeling requirements, and a gluten-free claim made in a kitchen that also uses wheat flour is risky.

Selling online, at markets and through shops

Online sales are where states differ most, so build your sales model around your own state's rules. In Florida, you can run a full e-commerce shop and ship by mail or courier. In California, direct sales placed online can be fulfilled by mail or delivery service, and only Class B operators can sell through other businesses. In Texas, online orders are fine, but you or your household must deliver, and your website must show the label information before payment. In New York, you can sell online, but only to customers in New York.

If you sell on a marketplace such as Etsy, you're still bound by your state's cottage food rules, including any limits on shipping. Our guide to selling on Etsy covers the platform side. Farmers markets often have their own vendor rules, insurance requirements and fees, so check with the market manager before you apply.

Packaging matters for both food safety and shelf life. Sealed bags or boxes protect products from contamination; most states require cottage foods to be prepackaged and labeled before sale. Single-serving packaging also makes it easier to sell at events.

Zoning, business registration, taxes and insurance

A cottage food exemption covers food safety licensing, not everything else. You still need to think about:

Zoning and home business rules. Some cities restrict home-based businesses: customer visits, signage, parking or employees. Florida's law limits how far local governments can regulate cottage food, but home-based business conditions still apply, and in other states your city may require a home occupation permit. Our business licenses guide explains local licensing.

Business registration. If you sell under a brand name, register a DBA or form an LLC, and check whether your city or county requires a general business license or business tax receipt.

Sales tax. Cottage food laws don't exempt you from tax; Florida's statute says so explicitly. Many states exempt grocery-type food from sales tax but tax candy, soft drinks or prepared food, and the line between them varies by state. Register for a sales tax permit if any of your products are taxable. Our guides to Texas sales tax, Florida sales tax and calculating sales tax explain the rules.

Income tax. Report profit on Schedule C and pay self-employment tax of 15.3% once net earnings reach $400 a year. Make quarterly estimated payments once profits grow.

Insurance. Cottage food laws don't require insurance, but product liability insurance protects you if a customer claims your food made them sick or caused an allergic reaction, and many farmers markets require it. Your homeowner's policy probably excludes business activity. Our estimate, based on published quotes for small food vendors, is roughly $300 to $700 a year for a general and product liability policy with a $1 million per-occurrence limit.

Cottage food sales caps at a glance (2026)

$88,878

California Class A

CPI-adjusted each January

$177,756

California Class B

direct and indirect sales

$150,000

Texas

since September 1, 2025

$250,000

Florida

s. 500.80, no permit

Pricing cottage food: a worked example

Home bakers chronically underprice because they count only ingredients. Include packaging, labels, market fees, card fees, your time and a profit margin.

Assumptions. A Florida home baker sells decorated cookie boxes of six for $24. Ingredients cost $4.10 a box, packaging and labels $1.60, card processing about $0.75, and market or delivery costs average $1.00 a box, so variable cost is about $7.45. She bakes and decorates about 10 boxes in a four-hour session, plus an hour of packing and admin. Fixed annual costs are $2,400: insurance $500, market fees $1,200 (beyond the per-box allowance), website $300 and equipment replacement $400.

Result. Each box contributes $24 − $7.45 = $16.55. To cover $2,400 of fixed costs, she needs about 145 boxes a year. At 25 boxes a week for 48 weeks (1,200 boxes and $28,800 of sales), profit before tax is about 1,200 × $16.55 − $2,400 = $17,460, for roughly 600 hours of work, or about $29 an hour. Raising the price to $28 adds $4,800 a year with no extra work.

Try it — ingredient cost as a share of your price

Ingredient Cost per PlateMenu PriceTarget Food Cost

Gross Profit per Plate₹19.90

Suggested Price at Target₹16.40

StatusWithin target

Food Cost Percentage17.08%

Open the full Food Cost Calculator (PDF, save, compare)

Watch your cap as you grow. At these prices, the Florida baker could sell more than 10,000 boxes before reaching the $250,000 limit, but a California Class A operator would hit $88,878 at about 3,700 boxes. When you're close to the cap or want to wholesale widely, it's time to move into a licensed commercial or shared kitchen; our guide to starting a restaurant and food truck licensing guide cover the next step.

Common cottage food mistakes

Following another state's rules. Advice from a baker in Texas may be illegal in New York. Use your own state's agency page as the source of truth.

Using an outdated Texas guide. Guides written before September 2025 show the old $50,000 cap and a short list of allowed foods. The law changed substantially.

Leaving sesame off allergen lists. Many templates predate 2023. Add sesame and check every purchased ingredient's label.

Shipping where you can't. Mailing to customers in another state, or shipping in Texas, can take you outside the cottage food exemption.

Selling foods that need refrigeration where they're banned. Cream cheese frosting, custard fillings and cheesecake are excluded in most states, even if they're popular.

Official links

• CDPH — Cottage Food OperationsCalifornia classes, approved list, labels
• Texas DSHS — Cottage food productionSB 541 rules and registration
• Texas SB 541 (enrolled)Full bill text
• Florida Statutes s. 500.80Florida cottage food law
• NY Agriculture and Markets — Home processingRegistration and allowed foods
• FDA — Food allergiesNine major allergens

What to do next

Start with your state's official cottage food page, confirm your products are allowed, and complete any registration and training. Then design compliant labels, set prices with the food cost calculator and the profit margin calculator, and track your sales against the cap from the first month. Our food cost guide explains how to cost a recipe line by line.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is a cottage food law?

A cottage food law is a state law that lets you make certain low-risk foods in your home kitchen and sell them without a commercial kitchen or a full food establishment license. Every state sets its own list of allowed foods, sales limits, labeling statement and sales channels, so the rules for a home baker in California, Texas, Florida or New York are quite different.

Do I need a license to sell food from home?

It depends on the state. California requires registration (Class A) or a permit (Class B) from your county environmental health department. Florida requires no permit if you stay within its cottage food rules. Texas requires registration only if you sell foods that need refrigeration, and New York requires a free home processor registration with the Department of Agriculture and Markets.

How much can a cottage food business make?

State caps vary widely. For 2026, California allows $88,878 in gross annual sales for a Class A operation and $177,756 for Class B. Texas allows $150,000 a year, Florida $250,000, and New York's home processor page states no cap. Above the limit, you need a licensed commercial kitchen.

Can I sell cottage food online and ship it?

Often, but within limits. Florida's statute allows internet and mail-order sales with delivery by mail or commercial carrier. California allows direct sales by phone or internet fulfilled by mail. Texas allows online orders but requires the operator, an employee or a household member to deliver personally. New York allows online sales within the state only, and interstate sales aren't allowed.

What has to be on a cottage food label?

Most states require the product name, your business name and address (or a registration number where allowed), ingredients in descending order by weight, net quantity, allergen information and a state-mandated statement. Examples: Florida's 'Made in a cottage food operation that is not subject to Florida's food safety regulations' and California's 'Made in a Home Kitchen'.

Can I sell cheesecake or meat products under cottage food law?

Usually not. Most states limit cottage food to foods that don't need refrigeration for safety, so cheesecake, cream pies, meat and dairy are typically excluded. Texas is the main exception since September 1, 2025: it allows many foods that need refrigeration if you register and follow labeling and temperature rules, but still bans meat, poultry, seafood, ice cream and low-acid canned foods.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Cottage Food Operations — California Department of Public Health · accessed 9 October 2026
2. 2.Cottage Food Operation Adjusted Gross Annual Sales Limit (2026) — California Department of Public Health · accessed 9 October 2026
3. 3.Labeling Requirements for Cottage Food Products — California Department of Public Health · accessed 9 October 2026
4. 4.S.B. 541 (89th Legislature) — enrolled version — Texas Legislature · accessed 9 October 2026
5. 5.Texas Cottage Food Production — Texas Department of State Health Services · accessed 9 October 2026
6. 6.Florida Statutes s. 500.80 — Cottage food operations — Florida Legislature · accessed 9 October 2026
7. 7.Florida Statutes s. 500.03 — Definitions — Florida Legislature · accessed 9 October 2026
8. 8.Home processing — New York State Department of Agriculture and Markets · accessed 9 October 2026
9. 9.Food allergies — U.S. Food and Drug Administration · accessed 9 October 2026
10. 10.Notice to Amend the Approved Cottage Food List (October 2026) — California Department of Public Health · accessed 9 October 2026