Texas Cottage Food Laws

Texas Cottage Food Law: Comprehensive Guide for Home-Based Food Entrepreneurs

This guide provides a detailed breakdown of Texas’s cottage food law, incorporating the major expansion under SB 541 effective September 1, 2025, and covering sales limits, registration and training requirements, allowed/prohibited foods, labeling, permitted sales venues, and practical steps to get started.

Quick Facts

Overview / Introduction

Texas’s cottage food law was significantly expanded by Senate Bill 541, effective September 1, 2025, tripling the annual sales cap from $50,000 to $150,000 (indexed for inflation) and shifting to an exclusion-based model, allowing nearly all homemade foods except a short list of restricted items. The revisions also permit refrigerated (TCS) foods for direct-to-consumer sales, enable wholesale of non-TCS goods via registered Cottage Food Vendors, and prohibit local authorities from imposing licensing, permit, or fee requirements for cottage operations. (chron.com)

Sales Limits

Under SB 541, cottage food operations are limited to $150,000 in gross annual sales, with this figure subject to inflation adjustments by DSHS. Surpassing this threshold requires transitioning to a licensed commercial operation. (cottagecms.com)

Licensing & Registration

• No state or local food establishment permit, inspection, or fee is required for cottage food operations; they are exempt from the Texas Food Establishment Rules. Local authorities are prohibited from requiring such licensing or fees. (dshs.texas.gov)
• Registration with DSHS is required for operators of TCS (time/temperature control for safety) foods, enabling use of a unique registration ID in place of a home address on labels for privacy. (cottagefoodlicense.com)

Training Requirements

Operators must complete an accredited basic food handler training program (acceptable by DSHS or ANSI). If holding an accredited Food Manager Certification, DSHS will accept it in lieu of the food handler certificate. Typically includes personal hygiene, cross‑contamination prevention, and safe storage. Training is generally valid for two years. (dshs.texas.gov)

Home Kitchen Inspection

Routine inspections of home kitchens are not required for cottage food operations. However, DSHS or local health authorities retain emergency authority to intervene in cases of serious public health threats or consumer complaints. (dshs.texas.gov)

Allowed Foods

Texas now allows nearly all homemade foods, shifting to an exclusion-based model. Allowed foods include:

• Traditional non‑TCS items: baked goods, jams, jellies, pickles, candies, granola, roasted coffee, dried goods.
• TCS foods (refrigerated items) like cheesecakes, cream pies, cream‑filled pastries, vegetarian casseroles, cut fruits/vegetables – only for direct-to-consumer sales with registration and additional labeling. (cottagefoodlicense.com)

Prohibited Foods

Even under the expanded law, the following remain prohibited:

• Meat, meat products, poultry, seafood, raw milk and raw milk products
• Ice or ice products (e.g., ice cream, gelato, popsicles)
• Low‑acid canned goods
• Products containing CBD or THC Any items containing these must not be sold under cottage food law. (cottagefoodlicense.com)

Labeling Requirements

All cottage foods must be packaged to prevent contamination and labeled clearly:

• Business name and home address or DSHS-issued registration number (if registered) (cottagefoodlicense.com)
• Common or usual name of the product (cottagefoodlicense.com)
• Major allergens listed if present (eggs, nuts, milk, soy, wheat, peanuts, tree nuts, sesame) (dshs.texas.gov)
• The required disclosure statement in all caps:  "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." (dshs.texas.gov)
• For TCS foods only: • Production date must be on label (dshs.texas.gov) • Safe handling instructions in at least 12‑point font: "SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption." (dshs.texas.gov)
• For pickled, fermented, or acidified canned goods: include a unique batch number, and producers must maintain records (batch number, date, recipe or acidity test) for at least 12 months. (ij.org)

Where You Can Sell

Cottage food products may be sold in a variety of venues:

• Direct-to-consumer: in-person from home, farmers markets, roadside stands, festivals, pop-ups, online orders with personal delivery by the operator, household member, or employee to a Texas resident—no commercial or third-party delivery, no shipping across state lines. (cottagecms.com)
• Wholesale via Cottage Food Vendors (for non‑TCS foods only): operators can sell goods to registered Cottage Food Vendors who in turn may sell at farmers markets, retail stores, restaurants or food service establishments** (non‑TCS only).** (cottagecms.com)
• No out-of-state sales. (cottagecms.com)

Sales Tax

Sources do not provide definitive information on statutory sales tax treatment. Some resources note baked goods may differ in taxability, but Texas Comptroller guidelines vary depending on type. We recommend consulting the Texas Comptroller of Public Accounts for up-to-date rules. (legalclarity.org)

Special Exemptions / Notes

• No routine kitchen inspections and no local permit/fee requirements—state law preempts local regulation of cottage food operations. (dshs.texas.gov)
• Privacy protection: using DSHS registration number on label instead of a home address protects operator’s privacy. (cottagefoodlicense.com)
• Non‑profits (501(c)(3)) can operate cottage food businesses under SB 541, and their officers/directors may produce goods. (chron.com)
• Accurate record‑keeping is required, especially for TCS and pickled/fermented products (batch history for 12 months). (ij.org)

Getting Started

1. Complete accredited food handler training (online) and retain certificate. (dshs.texas.gov)
2. If planning to sell TCS foods, register with DSHS to obtain registration number (required for privacy and compliance). (cottagefoodlicense.com)
3. Review what foods you intend to sell—ensure they’re not in the prohibited categories. Use batch numbering for pickled/fermented goods; ensure packaging prevents contamination. (ij.org)
4. Prepare compliant labels with required elements: business name, address or registration ID, product name, allergens, disclosure statement, and for TCS: production date and safe-handling instructions in ≥12‑point font. (cottagefoodlicense.com)
5. Choose sales venues: direct-to-consumer (home, markets, events, online with personal delivery) or wholesale (non‑TCS via vendor). No local license needed. (cottagecms.com)
6. Track gross sales carefully to stay under the $150,000 annual cap. Maintain required records (e.g., batch logs) for 12 months. (ij.org)
7. Monitor Texas Comptroller guidance for sales tax obligations depending on product type. (legalclarity.org)

Official Resources

• DSHS Cottage Food Production Information: official guidance and rules. (dshs.texas.gov)
• Online Accredited Food Handler Training Programs (DSHS). (dshs.texas.gov)
• SB 541 legislative text via Texas Legislature. (chron.com)
• DSHS Retail Food Establishments (General Info). (dshs.texas.gov)

Official Sources

This guide was compiled from the following official sources:

• www.dshs.texas.gov
• capitol.texas.gov
• legalclarity.org
• www.dshs.texas.gov

Important Notes

⚠️ Sales tax treatment varies by product type; consult Texas Comptroller for specifics.

⚠️ Sources may not cover all local zoning or event vendor requirements—verify with local authorities.