Start your cottage food business in Texas
Texas has one of the most expansive cottage food laws in the nation. Sell almost any food, including refrigerated items, with optional wholesale to stores and restaurants.
Last Updated: May 2026 • Verified with official sources
Texas Cottage Food Law Overview (Updated Sept 2025 - SB 541)
Texas has one of the most expansive cottage food laws in the United States. SB 541 tripled the revenue cap and allows almost any food, including refrigerated items and wholesale sales.
$150,000 annual sales limit (tripled from $50,000, indexed for inflation)
Optional registration with DSHS (required for TCS foods or to use ID instead of address)
Can sell refrigerated/TCS foods (cheesecakes, cream pies, etc.) with registration
Wholesale allowed through registered Cottage Food Vendors (stores, restaurants)
Home kitchens are NOT inspected or regulated by local health departments
Food handler certification required
Local governments CANNOT require permits or fees
What You Can (and Can't) Sell
- Baked goods (cookies, cakes, breads, pastries, including cream-filled)
- Cheesecakes and cream cheese frosting (TCS - requires registration)
- Candy and confections
- Fruit pies, cream pies, and custard pies (TCS items require registration)
- Jams, jellies, and preserves
- Dried fruits and vegetables
- Popcorn and snack mixes
- Granola and cereals
- Roasted coffee beans
- Dried herbs and spices
- Pickled products and fermented foods
- Nut butters (peanut butter, almond butter)
- Most foods requiring refrigeration (TCS - requires registration)
- Meat, meat products, poultry, or poultry products
- Seafood, fish, fish products, shellfish, and shellfish products
- Ice or ice products (shaved ice, ice cream, frozen custard, popsicles, gelato)
- Low-acid canned goods
- Products containing cannabidiol (CBD) or tetrahydrocannabinol (THC)
- Raw milk and raw milk products
Sales Limits & Locations
$150,000
As of September 1, 2025 (SB 541), Texas allows up to $150,000 in annual gross sales from cottage food products. This cap is indexed for inflation and will increase annually. This is one of the highest limits in the country.
- Farmers markets
- Direct sales from home
- Community events and fairs
- Online sales with in-person delivery
- Retail stores (through registered Cottage Food Vendors)
- Restaurants and food service (through registered Cottage Food Vendors)
- Farm stands
- TCS (refrigerated) foods can only be sold directly to consumers (no wholesale)
- Must deliver TCS foods at proper temperature (41°F or below for cold items)
- Cannot ship via mail or commercial delivery services
- Wholesale requires the third-party vendor to register with DSHS
Requirements & Regulations
Optional registration with DSHS. Required if: (1) selling TCS (refrigerated) foods, or (2) you want to use a unique ID number instead of your home address on labels. Registration is free and can be done online.
Home kitchens are NOT inspected by health departments. SB 541 explicitly prohibits local governments from regulating cottage food operations or requiring permits. Health departments cannot employ anyone who attempts to require cottage food permits.
Must complete a food handler certification course accredited under Texas Health and Safety Code Chapter 438(D). This is a basic food safety course, typically available online for $10-20.
Not required by law, but strongly recommended for liability protection, especially if selling TCS foods or through wholesale channels.
Check local zoning ordinances for home-based business restrictions. However, local governments cannot require cottage food-specific permits or fees.
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Labeling Requirements
- Statement: 'THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.'
- Product name
- Ingredient list in descending order by weight
- Net weight or volume
- Producer name and address (or DSHS registration ID number if registered)
- Production date (required ONLY for TCS foods and foods sold through Cottage Food Vendors)
- Safe handling instructions for TCS foods: 'SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption.' (minimum 12-point font)
- Allergen information (if applicable)
Legible font size for most text; 12-point minimum for TCS safe handling instructions
All information must be on the label or invoice/receipt (for safe handling instructions)
Production & Kitchen Requirements
Texas cottage food operations must follow specific production rules to ensure food safety.
- All products must be made in your primary residence kitchen
- Kitchen must be maintained in a clean and sanitary condition
- Pets should be kept out of the kitchen during food production
- Use potable (drinking quality) water for all food preparation
- Store ingredients properly to prevent contamination
- Maintain proper refrigeration temperatures (below 41°F)
- Wash hands thoroughly before and during food preparation
- Use clean utensils, equipment, and food-contact surfaces
- Keep accurate records of production dates and sales
- Do not prepare cottage foods at the same time as potentially hazardous foods
Where & How You Can Sell
Allowed Sales Channels
Sell directly to consumers at approved farmers markets throughout Texas.
⚠️ Some markets may require vendor registration
Customers can pick up orders from your home. Accept orders online, by phone, or in person. You or a household member must personally deliver the food.
⚠️ Must comply with local zoning laws for home-based businesses
Sell at fairs, festivals, church events, and craft shows.
Accept orders through a website or social media. You, an employee, or household member must personally deliver the food to the consumer.
⚠️ Cannot use third-party delivery services or ship via mail
Sell non-TCS foods to grocery stores, convenience stores, and other retail outlets through a registered Cottage Food Vendor.
⚠️ The store must register as a Cottage Food Vendor with DSHS. TCS foods cannot be sold wholesale.
Sell non-TCS foods to restaurants, cafes, and food service establishments through a registered Cottage Food Vendor.
⚠️ The restaurant must register as a Cottage Food Vendor with DSHS. TCS foods cannot be sold wholesale.
Prohibited Sales Channels
Cannot ship products via USPS, UPS, FedEx, or any commercial delivery service. Must personally deliver.
Refrigerated/TCS foods (cheesecakes, cream pies, etc.) can only be sold directly to consumers, not through wholesale channels.
Additional Exemptions & Clarifications (SB 541)
- Cottage food producers can donate non-TCS foods for sale or service at events, including religious or charitable organization bake sales
- Sampling is allowed at any location without permits or fees. Follow basic food safety rules (clean gloves, proper handwashing, maintain TCS foods at 41°F or below)
- Products given away for free (samples, gifts) do not require labeling
- Nonprofit organizations can operate as cottage food producers from a director or officer's home
- Local health departments CANNOT require permits, fees, or inspections for cottage food operations
Violations & Enforcement
While Texas has a permissive cottage food law, violations can result in penalties.
Penalty: Cease and desist order, potential fines, and possible legal action for repeat offenses
Penalty: Warning letter for first offense, fines for continued violations
Penalty: Immediate shutdown of operation, fines, and potential legal action
Penalty: Investigation by health department, potential civil liability, and criminal charges if negligence is proven
Frequently Asked Questions
No state registration is required unless you're selling TCS foods or want to use a registration ID instead of your home address. You must complete a food handler certification course. Local governments cannot require cottage food permits or fees. You may want to register your business name and obtain an EIN for tax purposes.
Yes! You can list products on Etsy or your own website and accept online orders. However, you or a household member must personally deliver the food to the customer. You cannot ship via USPS, UPS, FedEx, or use third-party delivery services.
Yes! As of September 1, 2025, you can sell TCS (refrigerated) foods like cheesecakes, cream cheese frosting, cream pies, and custard pies. You must register with DSHS, include production dates and safe handling instructions on labels, and deliver products at proper temperature (41°F or below).
Yes, but only non-TCS foods and only if the store or restaurant registers as a Cottage Food Vendor with DSHS. TCS (refrigerated) foods can only be sold directly to consumers. The vendor must display a sign stating the product was made in a private residence.
No. Cottage food operations are limited to selling individual products directly to consumers. Catering requires a commercial food license.
The law does not explicitly prohibit helpers, but all production must occur in your home kitchen. If you hire employees, you may trigger additional business regulations and tax requirements.
Yes. Most cottage food products are subject to sales tax. You must register with the state tax authority, collect sales tax from customers, and file regular returns.
Yes, as long as it's your primary residence. However, check your lease agreement as some landlords prohibit home-based businesses.
List all ingredients in descending order by weight. If your product contains any of the major allergens (milk, eggs, wheat, soy, peanuts, tree nuts, fish, shellfish), include a 'Contains:' statement on the label.
Getting Started Checklist
Follow these steps to launch your Texas cottage food business:
- Choose your product(s) from the allowed foods list
- Perfect your recipes and test them with friends/family
- Design and print labels with all required information
- Set your prices (factor in ingredients, time, and packaging)
- Register for sales tax collection
- Consider getting liability insurance
- Set up a simple bookkeeping system to track income and expenses
- Find your first sales venue (farmers market, online, etc.)
- Start small and scale as you gain experience
Scaling Beyond Cottage Food
If your business outgrows the cottage food law, consider these options:
- Rent time in a commercial kitchen or shared-use facility
- Apply for a retail food establishment license
- Build or lease your own commercial kitchen space
- Partner with a co-packer for larger production runs
- Explore wholesale opportunities with proper licensing