Texas Cottage Food Law: What You Can Sell From Home in 2026
Short answer
Yes. Texas lets you make and sell most foods from your home kitchen without a license, permit or inspection, if you earn $150,000 a year or less (adjusted for inflation). Meat, seafood, ice cream, low-acid canned goods, CBD and THC foods and raw milk are excluded, under Health and Safety Code § 437.001.
Last verified October 29, 2026 against current Texas law
The Texas cottage food law is the rule that lets home cooks sell baked goods, jams, candy and many other homemade foods straight to customers. A big update, Senate Bill 541, took effect on September 1, 2025. It raised the sales cap, opened the door to far more foods, and stopped cities from requiring local permits. This guide explains what you can sell, what the label must say, where you can sell it, and where the limits still are.
| Who it covers | Home cooks and nonprofits selling food made in a private residence |
|---|---|
| Sales cap | $150,000 a year in gross income, adjusted annually for inflation by DSHS |
| License or permit | None for most foods. The cook registers with DSHS only to sell refrigerated foods or to put an ID number on the label; vendors that buy wholesale must register |
| Not allowed | Meat and poultry, seafood, ice and frozen desserts, low-acid canned goods, CBD or THC foods, raw milk |
| Training | The cook must complete an accredited food handler course |
| Main laws | Health and Safety Code §§ 437.001, 437.0192 to 437.01965 |
| Agency | Texas Department of State Health Services (DSHS) |
What is the Texas cottage food law?
A cottage food production operation is a home kitchen business that sells food it makes at home. The state calls it a cottage food production operation, and the rules sit in Chapter 437 of the Health and Safety Code. Texas first created the cottage law in 2011 and widened it in 2013 and 2019, but the 2025 changes are the biggest so far.
Because the kitchen is a private home, the state does not treat it like a restaurant or bakery. Health departments have no power to inspect a cottage food kitchen, and these operations are exempt from the Texas Food Establishment Rules. DSHS and local health authorities can still act when there is an immediate and serious threat to health, such as a recall or an emergency order.
Cottage food list: what you can and cannot sell
You can now sell almost any food, with six exceptions. Before 2025, the law used a short list of allowed items, mostly baked goods, candy, jams and dried herbs. SB 541 flipped that. Everything is allowed unless it is on the banned list.
| Food | Status in 2026 |
|---|---|
| Cookies, breads, cakes, brownies, pies | Allowed |
| Candy, fudge, chocolate-covered treats, jams, jellies | Allowed (candy and chocolate-covered items are generally taxable) |
| Cheesecake, cream pies, custard pies, flan, pumpkin pie (refrigerated) | Allowed, but you must register with DSHS first |
| Pickles, salsa and fermented vegetables | Allowed, with a unique batch number on the label for pickled and fermented items |
| Meat, poultry and anything made from them | Not allowed |
| Seafood, fish and shellfish | Not allowed |
| Ice, ice cream, popsicles, frozen custard | Not allowed |
| Low-acid canned goods such as canned corn or beans | Not allowed |
| Foods with CBD or THC | Not allowed |
| Raw milk and raw milk products | Not allowed |
One point surprises many bakers. Cheesecake and chicken salad show the split. Cheesecake is allowed with registration, while chicken salad is poultry and never allowed. Foods that need time and temperature control for safety, called TCS foods, such as cheesecake and cream pies, usually need refrigeration. They are allowed now, but only with registration and extra labeling.
The $150,000 sales cap for home food businesses
You can earn up to $150,000 a year in gross income from cottage foods. Gross income means total sales before costs. The old cap was $50,000, so SB 541 tripled it. The statute also says DSHS adjusts the cap each year for inflation using the consumer price index, so check the DSHS page for the current figure.
If you sell more than the cap, you no longer qualify as a cottage food operation. You would need a commercial kitchen and a food manufacturer or retail food permit instead.
Do you need a license, permit or training?
No license or permit is needed to sell most cottage foods, and no fee applies. DSHS says local governments may not require a license, permit or fee to produce, sell or sample cottage food. A city or county employee who knowingly tries to require one can lose that role under Health and Safety Code § 437.0192.
You do need food safety training. The person who runs the operation must finish a basic food handler course accredited by the state. Under Health and Safety Code § 437.0195, anyone else who prepares or packages the food must also have the training, be directly supervised by a trained operator, or be a member of the household where the food is made.
Registration with DSHS is separate, and it is free. You must register if you sell TCS foods. You may also register just to print a state ID number on your label instead of your home address. A cottage food vendor that buys from you at wholesale must register too.
Cottage food label requirements in Texas
Every packaged product needs a label. The label must be easy to read and carry five things:
- Your name, plus your address or your DSHS ID number if you registered
- The common name of the product
- Any major allergen in it, such as eggs, tree nuts, soy, peanuts, milk, wheat or sesame
- The statement THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION
- A production date, if the food is refrigerated or sold through a vendor
Refrigerated foods also need a safe handling statement in at least 12-point type. It tells buyers to keep the food refrigerated or frozen until they are ready to eat it. Pickled, fermented and acidified canned items also need a unique batch number. Large items such as a wedding cake do not need a package label. For those, put the same information on the invoice or receipt.
Where you can sell: farmers markets, stores and online
You can sell directly to customers from home, at farmers markets, at farm stands, and at events. You may offer samples anywhere in Texas under Health and Safety Code § 437.01955, following the sanitation standards in § 437.020(c), including keeping potentially hazardous samples at 41°F or below.
Stores and cafes are possible through a cottage food vendor. A vendor is a Texas business with a contract with you that sells your non-refrigerated foods at farmers markets, farm stands, food service establishments and retail stores. A vendor that buys from you at wholesale must register with DSHS. It must also post a sign near your products saying they were made in a private residence not subject to licensing or inspection, and the label must show the date the food was made.
Online sales are allowed, but only inside Texas and only with in-person delivery. Under Health and Safety Code § 437.0194, you, an employee or a household member must hand the food to the buyer, and the buyer must see the label information before paying. That rules out mailing orders through the post office or a carrier. It also rules out DoorDash-style apps, because a stranger would be doing the delivery.
Cottage food tax in Texas: do you charge sales tax?
It depends on the product. Most bread, cookies and cakes are not taxable in Texas, but candy is, and some items become taxable when sold with utensils or heated. The Comptroller decides, not DSHS, so confirm your products with the Texas Comptroller before you open. If you sell taxable items, you need a sales tax permit from the Comptroller.
Can you bake in any kitchen? Home, shared and rented space
No. The food must be made in your primary residence, so a detached garage kitchen, a food truck, or a rented commercial kitchen is outside the cottage law. Commercial equipment is not part of the model either. Pets can live in the home, but keep them out of the kitchen while you cook.
Renters and HOA members should read their leases and rules. The state law stops cities and counties from regulating your cottage food kitchen, but it does not cancel a lease term or an HOA covenant.
How the law changed: timeline
| Date | What happened |
|---|---|
| 2011 | Senate Bill 81 created the first Texas cottage food law |
| 2013 | House Bill 970 required food handler training and expanded the sales rules |
| 2019 | Senate Bill 572 adjusted labeling and sales rules |
| September 1, 2025 | Senate Bill 541 raised the cap to $150,000, allowed refrigerated foods, added vendors and nonprofits, and barred local permits |
| 2025 session | House Bill 2588, a companion cottage food bill with a lower $100,000 cap, did not become law; SB 541 carried the reforms |
Real situations
A city inspector says you need a permit
Stay calm and point to state law. Under Health and Safety Code § 437.0192, a city or county cannot require a permit, license or fee to produce or sell cottage food. If an official keeps pushing, give them a copy of that section and contact DSHS at foodestablishments@dshs.texas.gov.
You want to sell cheesecake at a farmers market
Register with DSHS first, then keep the cheesecake at 41°F or below until you sell it. Label it with the production date and the safe handling statement. You must sell it directly to the buyer, not through a store.
A customer in Oklahoma asks you to mail cookies
Texas cottage food law does not authorize interstate sales, and its online sales rule requires in-person delivery. Shipping out of state brings federal and the other state’s food rules into play, so check with the FDA and that state first.
Myths vs. facts about the Texas cottage law
| Myth | Fact |
|---|---|
| “I need a permit from my city.” | No. Cities and counties cannot require permits or fees for cottage foods. |
| “I can only sell cookies and jam.” | No. Since September 1, 2025, any food is allowed except six excluded categories. |
| “I can ship to anyone.” | No. Online orders must be hand-delivered, and only inside Texas. |
| “I do not need a food handler card.” | No. The person who runs the operation must complete an accredited course. |
| “I can sell cakes at wholesale to any store.” | No. Wholesale is limited to non-refrigerated foods sold to cottage food vendors, who must register. |
Frequently asked questions
What is cottage law in Texas?
Cottage law lets Texans make and sell certain foods from their home kitchens without a license, permit or health inspection. It sits in Chapter 437 of the Health and Safety Code. Since September 1, 2025, it allows nearly any food except six excluded types, with a $150,000 yearly sales cap.
What are the cottage food laws in Texas for baked goods?
Baked goods are the core of the law. You can sell cookies, breads, cakes and pies directly to customers if they are properly labeled and you have a food handler certificate. Refrigerated bakery items such as cheesecake and custard pie are allowed too, but you must register with DSHS first.
Do I need a license to sell homemade food in Texas?
No license or permit is required for most cottage foods, and local governments cannot charge a fee. You do need an accredited food handler course. You must register with DSHS if you sell refrigerated foods, and you may register to use an ID number on your label.
Can I sell cottage food online in Texas?
Yes, within Texas. The buyer must see the label information before paying, and you, an employee or a household member must deliver the food in person. Mail, carriers and third-party delivery apps do not meet that rule, and sales to other states are outside the cottage law.
Can I use a commercial or shared kitchen under the cottage law?
No. The cottage law covers food made in your primary residence. A rented commercial kitchen, a food truck or a separate building is outside it, and those setups fall under regular food manufacturer or retail food rules.
Do I have to charge sales tax on cottage food?
Possibly. Many bread and cake sales are not taxable in Texas, but candy is, and some items become taxable if sold with utensils or heated. The Texas Comptroller decides taxability, so check your products with that office before you start selling.
What happens if I earn more than $150,000?
Once your gross income passes the cap, you no longer qualify as a cottage food operation. You would need a licensed commercial kitchen and the proper food manufacturer or retail permit from DSHS or your local health department.
What changed on this page
October 29, 2026: Verified against current Texas law. Covers SB 541 (effective September 1, 2025), the $150,000 cap, refrigerated foods, vendors, and the ban on local cottage food permits.
If this affects you: ask the Texas Department of State Health Services about registration, labels or whether your product qualifies. For taxes, ask the Texas Comptroller. If a city or landlord threatens you, a Texas-licensed business or real estate attorney can review the facts. This guide is general legal information, not advice for your situation. See more in our work and business guides, including Texas labor laws if you hire help. Also see how we research each guide in our editorial policy, or report an error. Many 2025 laws started September 1, as covered in our new Texas laws guide.
