What Cottage Food Laws Are
Cottage food laws are state statutes that allow individuals to produce and sell certain homemade food products made in a residential kitchen without the commercial kitchen licensing, inspection, and facility requirements that apply to food businesses generally. The term 'cottage food' refers to the small-scale, home-based nature of the operation — food made 'in the cottage' rather than in a commercial facility. Before cottage food laws existed, virtually any food sold to the public was required to be produced in a licensed, inspected commercial kitchen facility. This created a significant barrier to entry for small-scale food entrepreneurs — the capital cost of building or renting commercial kitchen space was prohibitive for someone who wanted to sell homemade jam at a farmers market or baked goods to neighbors. The cottage food movement grew from advocacy by small food producers, homesteaders, and small business advocates who argued that low-risk foods (shelf-stable, non-hazardous items like baked goods, jams, and candy) did not pose meaningful public health risks that justified the commercial kitchen requirement. Beginning in the 2000s and accelerating through the 2010s and 2020s, states began passing cottage food laws with varying degrees of permissiveness. By 2026, all 50 states have some form of cottage food allowance, though the specifics — which products are allowed, what revenue limits apply, what permit requirements exist, and where sales can take place — vary enormously from state to state. The key dimensions along which states differ are: (1) permitted food types, (2) annual revenue limit (or absence of one), (3) permit and registration requirements, (4) sales channel restrictions (direct only vs. retail-permitted), and (5) labeling requirements. Understanding these dimensions for your specific state is the starting point for any cottage food business.
States With the Most Permissive Cottage Food Laws
Among all 50 states, Wyoming stands out as having the most permissive cottage food regime as of 2026. The Wyoming stateHomeBusinessLaw data is explicit: Wyoming has no annual revenue cap for cottage food operations — one of a handful of states with unlimited cottage food sales. Wyoming's law (Wyoming Statutes Section 11-49-101 et seq.) allows home-based food production and direct sale of non-potentially-hazardous foods without a food establishment license, no revenue cap, and no state permit or registration required. Allowed products include baked goods, jams, jellies, candy, dried herbs, and similar shelf-stable items. Direct-to-consumer sales from the home, at farmers markets, roadside stands, and community events are all permitted. Online sales with in-person delivery are also permitted. The only requirements are labeling: products must show the producer's name and home address, product name, ingredients, net weight, allergen statement, and the disclosure 'Made in a Home Kitchen Not Inspected by the Wyoming Department of Agriculture.' Wyoming's highly permissive framework reflects the state's property rights and minimal regulation philosophy — a consistent thread in Wyoming's approach to business and land use regulation. Texas is comparably permissive at the state level. The Texas Cottage Food Law (Texas Health and Safety Code Chapter 437, Subchapter E) documented in the stateHomeBusinessLaw field has no annual revenue cap, no state permit required, and allows online sales with in-person delivery. Texas also has broad product allowances: baked goods, candy, jam, jelly, dried herb mixes, dehydrated vegetables, popcorn, and roasted nuts. The state's notes are emphatic: 'Texas has one of the most permissive cottage food laws in the US — no revenue cap, no permit, includes online/delivery sales. Local health departments cannot impose additional requirements on cottage food operations.' The Austin and Houston city data both confirm this: cottageFoodLaw.revenueLimit is null (no cap), permitRequired is false. Colorado is also in the permissive tier. The Colorado Cottage Food Act (CRS 25-4-1614, effective 2012, amended 2021 by SB 21-117) has no annual revenue cap after SB 21-117 removed the previous $5,000/year limit. Registration with the Colorado Department of Public Health and Environment (CDPHE) is required, but the Denver city data documents this as a straightforward registration rather than a burdensome permit process. Oregon has no revenue cap for direct-to-consumer sales and requires only registration with the Oregon Department of Agriculture.
Revenue Limits by State
The annual revenue limit — or the absence of one — is one of the most significant variables in state cottage food laws because it determines the maximum scale of your business. Revenue caps range from as low as $10,000 in some states to no limit at all in the most permissive states. States with no revenue cap as of 2026 include Wyoming, Texas, Colorado (post-SB 21-117), Oregon (for direct sales), and several others. These states allow cottage food businesses to scale to whatever their direct market will support without a legal ceiling on sales. California has a tiered system documented in the stateHomeBusinessLaw data: Class A operations (direct sales to consumers) have no revenue cap. Class B operations (indirect sales through retailers) are capped at $75,000 annually. The Los Angeles city data reflects this: cottageFoodLaw.revenueLimit is $75,000, which represents the Class B limit — the more restrictive of the two tiers applicable to retail distribution. California's AB 626 (2018) also created Microenterprise Home Kitchen Operations (MEHKO) allowing up to $75,000/year in sales and up to 30 meals per day from a home kitchen, subject to county health department permitting. States with moderate revenue caps (in the $10,000-$50,000 range) include some midwestern and southeastern states that have adopted cottage food laws but maintained caps as a concession to commercial food industry interests or public health concerns. States with lower caps (under $10,000) typically impose these limits to keep cottage food operations genuinely small-scale and reduce competition with licensed commercial food businesses. The revenue limit also affects record-keeping requirements: states with caps typically require cottage food producers to maintain sales records to demonstrate compliance. Producers who expect to grow their business significantly should research their state's cap and consider whether the limit would constrain them — and if so, whether a licensed commercial kitchen, co-packer, or incubator kitchen would be a better path to scale.
Permit Requirements
Permit and registration requirements for cottage food producers vary from no requirements at all (Wyoming, Texas) to registration with a state agency (Colorado, Oregon) to local health permits required in some jurisdictions. Understanding the distinction between state permit requirements and local health department requirements is important because some states that impose no state requirements still have counties or cities that try to add requirements — and not all of them are legally entitled to do so. In California, the cottageFoodLaw.permitRequired field is true in Los Angeles city data, reflecting that a registration or permit with LA County Environmental Health is required. The permitType is 'Class A (direct-to-consumer, no limit) or Class B (indirect sales through retailers, $75,000 cap).' This matches the California Homemade Food Act framework. California requires cottage food operators to register with their county environmental health department — a lower barrier than a full food facility permit, but a regulatory step. In Austin, permitRequired is false. The Texas Cottage Food Law explicitly prevents local health departments from imposing additional requirements on cottage food operations — so Austin/Travis County cannot require a permit even if they wanted to. This pre-emption provision is one of the strongest protections for cottage food producers in any state. In Portland, permitRequired is true, and the permitType is 'Oregon Department of Agriculture Cottage Food registration.' The ODA registration fee is approximately $20/year — among the lowest cottage food fees in the nation. The registration process involves submitting basic information about your operation to ODA. In Denver, permitRequired is true, and registration with CDPHE is required under the Colorado Cottage Food Act. The Denver city data notes this registration process is required before commencing cottage food sales. When evaluating permit requirements, also check whether your homeowners association (HOA) imposes any restrictions on home-based businesses. While HOAs cannot override state cottage food laws in most states, they may have separate rules about commercial activities, signage, or customer traffic that affect how you operate.
What You Can and Can't Sell
The category of allowed cottage food products is one of the most important variables for any aspiring cottage food producer. States define allowed products using either a positive list (here is what is specifically allowed) or a negative list (anything not on the prohibited list is allowed). The common thread across all state cottage food laws is the focus on non-potentially-hazardous foods — items that do not require temperature control for safety, cannot support the rapid growth of pathogens at room temperature, and have a low inherent public health risk. Virtually universally allowed cottage food products include baked goods made without cream, custard, or meat fillings (cookies, cakes, brownies, breads, muffins); jams and jellies with pH 4.6 or below (ensuring sufficient acidity to prevent botulism growth); candy (hard candy, fudge, toffee, brittle); and dried herb mixes, seasonings, and spice blends. Foods that are almost universally prohibited under cottage food laws include meat products (fresh, canned, or processed — meat requires inspection under USDA rules that state cottage food laws cannot waive); dairy products that require temperature control (custard-filled pastries, cream cakes, fresh cheeses); canned low-acid vegetables (green beans, tomato salsa without proper acidification — these require pressure canning to prevent botulism); and products containing raw eggs without stabilization. California's rules are an interesting case study in expanding allowances over time. The original AB 1616 (2012) limited cottage food to a defined list of non-hazardous products. AB 626 (2018) created the MEHKO category with expanded product allowances and up to 30 meals per day. Over time, California has expanded the approved product list and created pathways for a wider range of home kitchen production. States with broader product allowances include Texas (which adds roasted nuts, popcorn, and dehydrated vegetables to the standard list) and Colorado (which has expanded allowances since the 2021 SB 21-117 amendment). If you plan to sell a product that you are not sure is permitted, contact your state's cottage food regulatory agency — typically the state department of agriculture or department of health — for a written determination before investing in production and marketing.
Selling Online and at Farmers Markets
Sales channel rules are a significant differentiator between state cottage food laws. The most important channel questions are: (1) Can you sell online? (2) Can you sell at farmers markets and other in-person venues? (3) Can you sell through retail stores? (4) Can you ship across state lines? Most state cottage food laws permit direct sales from the home and at farmers markets, roadside stands, and community events. Selling directly to a customer you interact with personally is the universal core of cottage food sales. Texas and Wyoming both explicitly allow online sales with in-person delivery — meaning you can take orders online and complete the sale by hand-delivering the product. This is an important distinction from shipping: hand-delivery is considered 'direct-to-consumer' even when the order was placed online. California's Class A operations (direct sales only) also allow online orders with in-person pickup or delivery. Retail distribution — selling through grocery stores, cafes, or other retail intermediaries without direct consumer interaction — is the most restrictive channel. California Class B allows retail distribution up to $75,000/year. Most other states with revenue caps apply the cap specifically to retail distribution while permitting unlimited direct sales, or they prohibit retail distribution entirely under the cottage food exemption (requiring a licensed commercial kitchen for any retail distribution). Shipping across state lines is legally complex for cottage food operators. Federal law applies to interstate commerce in food, and FDA regulations do not recognize state cottage food exemptions. In theory, shipping cottage food products across state lines without FDA registration and compliance could violate the Federal Food, Drug, and Cosmetic Act — though enforcement against small cottage food shippers has been minimal. Consult a food law attorney if you plan to build an online business shipping products nationally. Farmers markets are the primary sales venue for most cottage food producers. Market managers typically require cottage food producers to show documentation of their state registration or permit, labeling compliance, and sometimes general liability insurance. Building relationships with farmers market managers in your area is often the most valuable early step in launching a cottage food business.
City-Specific Cottage Food Rules
While cottage food regulation is primarily a state-level framework, city-level data for Los Angeles, Austin, Portland, and Houston reveals how the state law plays out at the local level and what city-specific considerations apply. In Los Angeles, the cottageFoodLaw data shows: allowed (true), revenueLimit ($75,000 — reflecting the Class B limit), permitRequired (true). The permits note: 'California Homemade Food Act (AB 1616, 2012). Class A operations: direct sales only from home, no annual limit. Class B: indirect sales through retailers, $75,000 annual limit. LA County Environmental Health permit required. Registration at: https://ehservices.publichealth.lacounty.gov/.' For LA cottage food producers, the key practical step beyond state registration is obtaining the LA County Environmental Health registration — a county-level requirement that applies across unincorporated LA County and in many incorporated cities that contract with the county for environmental health services. In Austin, the cottageFoodLaw data shows: allowed (true), revenueLimit (null — no cap), permitRequired (false). The notes confirm: 'Texas Cottage Food Law... No state permit required. No annual revenue cap... Austin/Travis County Environmental Health does not require local registration for cottage food operations within state law parameters.' Austin cottage food producers have the most unencumbered path of the cities examined — no local permit, no revenue cap, and no state registration. The primary requirements are labeling and direct-sales-only distribution. In Houston, the same Texas state framework applies: allowed (true), revenueLimit (null), permitRequired (false). Houston's lack of traditional zoning also means there are no zoning barriers to cottage food operations from the city's land use perspective. In Portland, the cottageFoodLaw data shows: allowed (true), revenueLimit (null), permitRequired (true), permitType (Oregon Department of Agriculture Cottage Food registration). Oregon's $20/year ODA registration is simple and low-cost. Portland cottage food producers selling at the Portland Saturday Market, local farmers markets, or through community-supported agriculture (CSA) shares represent a thriving segment of Portland's food economy. Denver cottage food producers operate under Colorado's framework: no revenue cap (post-2021), CDPHE registration required, broad product allowances. Denver's proximity to agricultural communities and strong local food culture makes farmers market sales particularly viable.
Getting Started with Cottage Food
Starting a cottage food business is among the most accessible forms of entrepreneurship available to home cooks. The regulatory pathway is simpler than most food businesses, and the upfront capital requirements can be as low as the cost of ingredients, packaging, and labels. Here is a practical step-by-step guide to launching legally. Step 1: Research your state's specific cottage food law. Every state's rules are different. Download your state's cottage food regulations from the state department of agriculture or department of health. Key questions: What products are allowed? Is there a revenue cap? Do you need to register or obtain a permit? What sales channels are permitted? Step 2: Register or obtain a permit if required. In California, register with LA County Environmental Health. In Oregon, register with ODA ($20/year). In Colorado, register with CDPHE. In Wyoming and Texas, no registration is required — just start with proper labeling. Registration processes are typically straightforward and can often be completed online. Step 3: Create compliant labels for all products. Labeling requirements are universal: virtually all state cottage food laws require the producer's name and home address, product name, ingredient list in descending order by weight, net weight, allergen statement, and a disclosure statement indicating the product was made in a home kitchen not subject to regular inspection (exact wording varies by state). Professional-looking labels are also good marketing — cottage food customers respond to quality packaging that signals care and attention. Step 4: Set up your sales venues. Identify farmers markets, community events, or direct-to-consumer channels in your area. Apply for farmers market vendor space — most markets have application processes and selection criteria that prioritize producers with genuine local supply. Step 5: Get general liability insurance. Cottage food operations are not typically required to carry liability insurance by state law, but it is strongly recommended. The Food Liability Insurance Program (FLIP) offers specialty cottage food liability policies starting around $299/year — modest cost for meaningful protection. Step 6: Keep good records. Even if your state does not require revenue tracking for cottage food purposes, good records help you understand what is selling, what your costs are, and when you might be approaching a revenue cap (in states with limits). Records are also essential for tax purposes — cottage food income is taxable as self-employment income in all states.
Frequently Asked Questions
What is a cottage food law and do all states have one?
A cottage food law allows individuals to produce and sell certain homemade food products from a residential kitchen without commercial facility licensing. All 50 states have some form of cottage food allowance as of 2026, though the rules vary significantly — from very permissive (Wyoming, Texas: no revenue cap, no permit) to more restrictive (states with revenue limits under $20,000 or limited sales channels).
How much money can I make selling cottage food?
It depends on your state. Wyoming, Texas, Colorado, and Oregon have no annual revenue limit for cottage food sales. California allows unlimited direct sales (Class A) and up to $75,000/year through retailers (Class B). Some states cap revenue at $5,000-$50,000/year. Check your state's specific cottage food law for the applicable revenue limit — if any.
Can I sell cottage food at a farmers market?
In most states, yes — farmers markets are one of the primary permitted sales channels under cottage food laws. Your state must allow farmers market sales in its cottage food law (most do), and individual markets may require documentation of your state registration, permit, or labeling compliance. Contact the market manager before applying to understand their specific requirements.
Do I need to register my cottage food business?
Depends on your state. Wyoming and Texas require no registration or permit. Oregon requires registration with the Oregon Department of Agriculture ($20/year). Colorado requires registration with CDPHE. California requires registration with your county's environmental health department. Even in states without registration requirements, proper labeling is required — every state requires product labels identifying home kitchen origin.