Texas Cottage Food Laws 2026: $150K Cap, No Permit Required

— Real question from a Texas cottage food producer

TL;DR: Texas Cottage Food Laws Quick Answer

Registration: Optional (allows registration number instead of home address on labels)
Allowed Products: Almost everything EXCEPT meat, poultry, seafood, raw milk/raw milk products, low-acid canned goods, ice products
Where to Sell: Direct sales, online, AND wholesale to cottage food vendors (NEW!)
Key Requirement: Food handler training required; TCS foods require registration; label must include production date + required disclaimer

Last verified: February 19, 2026 against Texas Health and Safety Code Chapter 437 and Texas DSHS Cottage Food Production

This guide breaks down everything you need to know to start your Texas cottage food business legally under the new law.

📋 Texas Cottage Food at a Glance

Registration: Optional (DSHS registration provides address privacy on labels)
Allowed Products: Everything EXCEPT meat, poultry, seafood, raw milk/raw milk products, low-acid canned goods, ice products
Where to Sell: Direct sales, farmers markets, online, AND wholesale to cottage food vendors
Training: Required — accredited food handler course (~2 hours, ~$10-15, valid 2 years) per § 437.0195
Inspection: Not required

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Overview: What SB 541 Changed
Allowed Products
Prohibited Products
Revenue Cap ($150K)
Labeling Requirements
Optional DSHS Registration
Where You Can Sell
Common Questions (FAQs)
Get Started Today

Key Timeline:

| ------------------------------------------ | --------------------------------------------- | | Two confusing paths (CFPO vs HBFPO) | ONE simple system | | Online sales required HBFPO permit | Online sales allowed for everyone | | No wholesale allowed (CFPO) | Wholesale to cottage food vendors allowed | | Third-party vendor sales prohibited | Third-party vendor sales allowed | | Must list home address on label | Registration number option for privacy | | Local permits/fees allowed | Local governments cannot impose fees |

🏠 Start from Home - No Permits

No registration required (it's optional for address privacy)
Food handler training required (accredited course, ~2 hours, ~$10-15, valid 2 years)
No kitchen inspection required
No fees whatsoever (aside from training)
Plenty of room for a serious business

📦 Expanded Sales Channels

✅ Direct sales (farmers markets, home, events)
✅ Online sales (your website, Etsy, social media)
✅ Mail order / shipping within Texas
✅ Wholesale to cottage food vendors (NEW!)
✅ Third-party vendor display with labeling (NEW!)

🛡️ Privacy Protection

Optional DSHS registration provides a registration number
Use registration number instead of home address on labels
Protects your personal information

🚫 Local Preemption

Cities and counties CANNOT require additional permits
No local fees or inspections allowed
Uniform statewide rules

💡 Bottom Line: Texas went from one of the more complicated cottage food systems to one of the simplest. If it's not meat, seafood, raw milk, or low-acid canned goods—you can probably make and sell it.

What Products Can I Sell Under Texas Cottage Food Laws?

The rule is simple: If it's not on the prohibited list, you can make and sell it.

Baked Goods:

Breads, rolls, biscuits
Cookies, brownies, bars
Cakes (including cream cheese frosting!)
All pies (fruit, cream, custard, etc.)
Muffins, scones, pastries
Donuts (filled or unfilled)

Preserved & Dried Foods:

Jams, jellies, preserves
Fruit butters
Dried fruits and vegetables
Dried herbs, tea blends
Roasted coffee beans
Pickles and fermented vegetables

Confections:

Candy (hard candy, toffee, brittles)
Fudge and chocolate
Chocolate-covered items
Popcorn (including caramel corn)
Marshmallows

Snacks & Cereals:

Granola, trail mix
Roasted nuts
Nut butters (peanut butter, almond butter)
Crackers, cereal bars

Condiments & Sauces:

Honey
Hot sauce, salsa
BBQ sauce, marinades
Dry spice mixes, rubs
Flavored sugars, salts
Mustard, ketchup

Beverages:

Lemonade, fruit drinks
Tea (brewed or concentrate)
Coffee drinks
Kombucha

Other:

Tamales (without meat)
Tortillas
Pet treats (non-meat)
Dry mixes (cake, cookie, pancake)

⚠️ Tip: For acidified foods (pickles, hot sauce), consider pH testing to ensure product safety.

Product Guides for Cottage Food Sellers

Ready to start selling? These comprehensive guides cover everything from equipment and startup costs to pricing and marketing:

Baked Goods:

How to Sell Cakes from Home — Startup costs, pricing, and decorating tips
How to Sell Brownies from Home — Equipment, recipes, and market strategies
How to Sell Bread from Home — Bread baking equipment and sales venues
How to Sell Sourdough from Home — Starter maintenance, pricing, and scaling
How to Sell Homemade Bread — Complete artisan bread business guide
How to Sell Cookies from Home — Best-selling varieties and packaging

Preserves & Condiments:

How to Sell Jams and Jellies — Canning basics, pricing, and labeling
How to Sell Apple Butter — Production techniques and seasonal sales
How to Sell Honey from Home — Beekeeping economics and honey regulations
How to Sell Herbs from Home — Growing, harvesting, and drying techniques

Confections & Specialty:

How to Sell Chocolates from Home — Tempering, molding, and gift packaging
How to Sell Fudge from Home — Temperature control and flavor varieties
How to Sell Spices from Home — Sourcing, blending, and packaging
How to Sell Popcorn from Home — Caramel corn, kettle corn, flavored varieties
How to Sell Tamales from Home — Vegetarian in most states, meat in TCS states

Other Products:

How to Sell Cut Flowers from Home — Growing, arranging, and market sales

What Products Are Prohibited Under Cottage Food Laws?

The prohibited list is SHORT. These are the ONLY things you cannot make:

Meat & Poultry:

Any products containing meat (beef, pork, lamb, etc.)
Poultry products (chicken, turkey, duck)
Jerky or dried meat

Seafood:

Fish
Shellfish
Any seafood products

Raw Milk and Raw Milk Products:

Raw (unpasteurized) milk
Raw milk cheeses, butter, cream
Note: Pasteurized dairy used as an ingredient in TCS foods (e.g., cheesecake, cream pies) IS allowed with DSHS registration

Eggs (Shell Eggs):

Eggs are ALLOWED under SB 541 — DSHS has confirmed "poultry products" does not include shell eggs
Eggs used as ingredients in baked goods, custards, etc. are also allowed

Low-Acid Canned Goods:

Explicitly prohibited under § 437.001(2-b)(A)
Includes canned vegetables, soups, and other low-acid items processed in sealed containers

Ice Products:

Shaved ice
Ice cubes
Frozen treats made primarily of ice

Other:

Cannabis-infused products (state/federal restrictions)
Alcohol (requires separate license)

Is There a Revenue Cap on Cottage Food Sales in Texas?

The annual revenue cap is $150,000 per household. This is one of the highest caps in the country.

What counts toward the cap:

✅ All sales of cottage food products
✅ Shipping fees charged to customers

What doesn't count:

❌ Sales tax collected
❌ Non-food items (packaging, utensils sold separately)

Inflation Adjustment

The cap will increase each year based on Consumer Price Index
You won't be squeezed by inflation over time
Texas legislature built in long-term protection

Stop selling cottage food for the rest of the year, OR
Transition to commercial (get retail food establishment license)

What Are the Labeling Requirements for Cottage Food in Texas?

Required Label Information

Every cottage food product must have:

Product common name (e.g., "Chocolate Chip Cookies")
Ingredients (descending order by weight)
Allergen statement (if applicable)
- Example: "Contains: Wheat, Milk, Eggs"
Net weight or volume
Production date (NEW under SB 541)
Producer identification - ONE of these:
- Your name and home address, OR
- Your name and DSHS registration number (for privacy)
Required disclaimer:

"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."

Privacy Option: DSHS Registration Number

Don't want your home address on labels? Register with DSHS (free) and use your registration number instead.

Example with home address:

Sarah's Sourdough Bakery

Example with registration number:

Sarah's Sourdough Bakery

Sarah's Sourdough Bakery

SOURDOUGH BREAD

Ingredients: Wheat flour, water, salt, sourdough starter
(wheat flour, water)

Contains: Wheat


THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.

Safe Handling Instructions

For time/temperature sensitive items, add handling instructions:

Optional DSHS Registration

Registration with DSHS is completely optional, but provides valuable benefits.

Why Register?

Privacy Protection:

Use registration number instead of home address on labels
Keep your home location private
Required for wholesale/third-party sales

How to Register:

Visit Texas DSHS Cottage Food Registration
Complete the online registration form
Receive your registration number (same day)

Cost: FREE

When Registration is Recommended

While registration is optional, consider it if you:

✅ Want to keep your home address off labels
✅ Plan to sell through third-party vendors
✅ Want to do wholesale to cottage food vendors
✅ Have privacy/safety concerns

Where Can I Sell Cottage Food in Texas?

✅ All Sales Channels Now Open

Direct Sales:

✅ Farmers markets
✅ Farm stands, roadside stands
✅ From your home (customer pickup)
✅ Community events, festivals, fairs
✅ Pop-up markets

Online Sales:

✅ Your own website
✅ Etsy, Amazon Handmade
✅ Facebook Marketplace
✅ Instagram shopping
✅ Any online platform
⚠️ Online/internet sales require personal delivery by the operator, a household member, or an employee (§ 437.0194) — you cannot simply ship all online orders via common carrier

Shipping:

⚠️ Online/internet orders require personal delivery — shipping via common carrier is not allowed for online orders
❌ Mail order / shipping not permitted as a standalone sales channel
✅ Sell to other cottage food vendors
✅ Third-party vendor display (with labeling)
⚠️ Not to commercial restaurants/stores (they need licensed suppliers)

Third-Party Vendor Sales

What's new: You can now have another cottage food vendor sell your products!

Requirements:

Your label must be on the product
Third-party must display your products properly
Registration recommended for this channel

❌ Still NOT Allowed

Interstate commerce - Shipping out of state requires federal licenses (FDA, USDA)
Institutional sales - Schools, hospitals, prisons need licensed suppliers
Commercial restaurants/stores - They generally need to source from licensed facilities

Your own website
Etsy, Amazon Handmade
Instagram, Facebook Marketplace
Any online platform

💻 StandScout Note: Use StandScout to manage both your local sales (farmers markets) AND online orders in one platform.

Common Questions About Texas Cottage Food Laws

Q: Do I need any permits or licenses?

No DSHS permit (registration is optional)
Food handler training IS required (accredited course under Chapter 438, Subchapter D; ~2 hours, ~$10-15, certification valid 2 years)
No kitchen inspection

You may want a general business license from your city/county, but that's separate from cottage food requirements.

Q: Can I ship out of state?

A: No. Texas cottage food law is intrastate only (within Texas). Shipping to other states is interstate commerce and requires federal licenses (FDA, potentially USDA). Many cottage food producers focus on building their Texas customer base first.

Q: Do I need to collect sales tax?

Register with Texas Comptroller (free)
Collect sales tax from customers
File quarterly or annual returns

Q: Can I make pickles, hot sauce, or fermented foods?

Water activity testing if relevant
Proper labeling with handling instructions

Q: Can I use a commercial kitchen?

A: If you rent a commercial kitchen, you're no longer operating under cottage food law. You'd need a full retail food establishment license instead. Most producers find working from home is simpler and cheaper.

Q: Can I hire employees?

A: Cottage food operations are intended for the producer and household members only. You generally cannot hire outside employees. Family members living in your household can help.

Q: Do I need insurance?

A: Texas law doesn't require insurance, but:

Wholesale accounts often require insurance
It protects you from liability

Q: Can I make wedding cakes or custom cakes?

Cakes with cream cheese frosting (now allowed!)
Custom decorated cakes
Tiered wedding cakes
Any baked goods not containing prohibited items

Q: What if my city or HOA says I can't run a business from home?

Require additional permits or licenses
Charge fees for cottage food operations
Add inspection requirements
Restrict your cottage food activities

Q: What's the difference from the old law?

| ---------------------------------- | --------------------------------- | | No online sales (CFPO) | Online sales allowed | | No wholesale (CFPO) | Wholesale to cottage food vendors | | Must list home address | Registration number option | | Local permits allowed | Local preemption |

How Do I Get Started Selling Cottage Food in Texas?

Quick Start Checklist

What You DON'T Need

❌ No permits or registration required
✅ Food handler training IS required (accredited course, ~2 hours, ~$10-15, valid 2 years)
❌ No kitchen inspection
❌ No fees to pay (aside from training)
❌ No waiting period

Optional: DSHS Registration for Privacy

If you want to keep your home address off labels:

Visit Texas DSHS Cottage Food Registration
Complete free online registration
Receive registration number (same day)
Use number instead of address on labels

Sources:

Texas Department of State Health Services - Cottage Food Production - Last verified: February 19, 2026
Texas Health and Safety Code, Chapter 437 - Last verified: February 19, 2026
Texas Health and Safety Code, Chapter 438 (Food Handler Training) - Last verified: February 19, 2026
SB 541 (2025) - Major cottage food expansion - Last verified: February 19, 2026
KTRE News: SB 541 Coverage - Last verified: February 19, 2026
Forrager: Texas Cottage Food Law - Last verified: February 19, 2026

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Always verify current requirements with Texas DSHS. Cottage food laws can change.