Cottage food laws let you legally sell certain low-risk homemade foods — think jams, cookies, bread, candy, and dry mixes — straight from your home kitchen, without building out a licensed commercial kitchen first. Every state now has some version of this law, but the details are entirely state-specific: which foods qualify, how much you're allowed to sell, whether you need to register or get inspected, and where you're allowed to sell it (farmers market, your porch, online, a local shop) all depend on the law in your state — and sometimes on your city or county on top of that. There is no single national cottage food rule. Before you bake a single batch to sell, you need to look up your own state's version.
What a "cottage food law" actually is
Normally, selling food to the public means operating out of a commercial kitchen that's licensed and regularly inspected — an expensive, often out-of-reach step for someone testing a small home-based business. Cottage food laws (sometimes called "home bakery" or, in a handful of states, "food freedom" laws) carve out an exception: for a defined list of low-risk foods, you can prepare and sell them from your own home kitchen, usually with lighter (or no) licensing and inspection requirements than a restaurant or commercial food business faces.
These laws exist at the state level, not the federal level. The U.S. Food and Drug Administration generally regulates food that moves in interstate commerce; a cottage food operation that sells only within its own state typically falls outside FDA's day-to-day oversight and instead answers to the state (and often local) agency that administers the cottage food program — usually the state department of agriculture, sometimes the state or county health department. That also means cottage food sales are usually limited to inside your own state; shipping your homemade jam across state lines is a different, more heavily regulated situation in most places.
The line that matters most: non-hazardous vs. "potentially hazardous" food
Almost every cottage food law draws the same basic line, even though the specific list of approved foods differs state to state:
Non-potentially-hazardous foods (sometimes called "non-TCS" foods, for "time/temperature control for safety") are foods that don't support rapid bacterial growth at room temperature because of their acidity (pH) or low water content. This is the category cottage food laws are built around. It typically includes things like baked goods without a cream, custard, or meat filling; jams and jellies made to a safe, tested recipe; dry baking mixes and granola; candy; honey; and some roasted nuts or dried herbs.
Potentially hazardous foods are the ones that need refrigeration or careful temperature control to stay safe — items like cream pies, cheesecakes, custards, canned low-acid vegetables, meat, dairy-based sauces, and most fresh dairy products. These are generally not allowed under a cottage food law, because they carry a real risk of foodborne illness if not held at the right temperature the whole way from your kitchen to someone's table.
Exactly where a given item falls, and exactly which foods your state includes on its approved list, varies — some states publish a specific list, others use the general "non-potentially-hazardous" definition and leave it to you (and the agency) to apply it. When in doubt about a specific recipe, ask your state's cottage food program before you sell it, not after.
Where you're allowed to sell it
This is one of the biggest points of variation between states, and it's changed a lot in recent years as more states have loosened their rules:
Direct, in-person sales — from your home, at a farmers market, a craft fair, or a roadside stand — are allowed almost everywhere cottage food laws exist. This is the original, most universally permitted sales channel.
In-state online sales and delivery or local pickup have expanded in many states in recent years, but rules on how you can advertise and deliver still differ — some states allow it broadly, others restrict delivery distance or require the buyer to be in-state.
Wholesale sales to a retail store, restaurant, or through a third party that then resells your product to the public are the most restricted category. Many states don't allow cottage food operators to sell wholesale at all; a smaller number allow it with extra conditions.
Shipping out of state generally falls outside cottage food protection and pulls in interstate commerce and FDA labeling rules, which is a different — and heavier — compliance path than most cottage food producers are set up for.
A handful of states (sometimes called "food freedom" states) have gone further than the traditional cottage food model, allowing home producers to sell a much broader range of homemade foods — sometimes even foods that would normally count as "potentially hazardous" — directly to informed consumers, generally without licensing or inspection, though usually still excluding meat products, and always with important state-specific limits. This is genuinely one of the more variable corners of small-business law right now, so don't assume your state works like a state you read about online.
Registration, permits, and inspection
States handle oversight very differently. Depending on where you live, you might face:
No registration at all for the lowest-risk tier of foods and sales.
A free or paid registration or permit with the state department of agriculture or health department.
A required food-safety training course (sometimes a short online course, sometimes an in-person class) before you can register.
A home kitchen inspection — some states require one before you start selling, or reserve the right to inspect if there's a complaint; others never inspect a cottage food kitchen at all.
An annual revenue cap on cottage food sales, above which you're expected to move into licensed commercial food production. Some states have no cap; some have raised or removed theirs in recent years as part of broader "food freedom" reforms.
Because these details change from state to state — and change over time as legislatures update the rules — do not rely on a number or a requirement you read on a blog, a Facebook group, or even this article. Confirm current registration, training, inspection, and revenue-cap rules directly with your state department of agriculture or state/county health department before you start selling, and check back periodically, since cottage food laws have been amended frequently in the past few years.
Labeling and allergen basics
Even under a cottage food law, you're still selling food to the public, and labeling requirements are one of the most consistently enforced pieces across states. Typical requirements include:
The name and address (or a state-assigned permit/registration number) of the cottage food operation.
The common name of the product.
A full ingredient list, in descending order by weight.
Major allergens — milk, eggs, peanuts, tree nuts, wheat, soy, fish, shellfish, and sesame are the ones federal food-labeling rules require to be called out, and most cottage food laws require the same disclosure. If your recipe touches any of these, or is made in a kitchen where these are also handled, say so clearly.
A required disclosure statement — most states require language along the lines of "This product was made in a home kitchen that is not inspected by [the state/county health department]," though the exact wording, placement, and font size requirements vary by state and are usually spelled out in the state's cottage food guidance.
Net weight or volume of the product.
Get the label wrong and, at minimum, you risk a warning or having to pull product from a market table; taking allergen labeling casually also means real risk to a customer's health, so treat it as a genuine safety step, not paperwork.
What to do before you sell anything
Find your state's cottage food program. Search "[your state] cottage food law" and look for your state department of agriculture or health department's own page — that's the authoritative source, not a third-party blog or template site.
Check the approved-foods list (or the non-potentially-hazardous definition) against exactly what you plan to make.
Confirm registration, permit, and training requirements, and complete any that apply before you take your first sale.
Check your city and county rules too. Some local governments add their own permit, zoning, or home-occupation requirements on top of the state cottage food law, especially if you plan to have customers come to your home or run a stand.
Design a compliant label covering ingredients, allergens, your business info, and the required disclosure statement.
Confirm where you're allowed to sell — direct, online-in-state, and (if permitted) wholesale — before you set up a website or approach a local store.
Ask about sales tax. Many states expect sales tax to be collected on cottage food sales, though some treat certain food items differently; registration and rates are handled by your state's tax agency and vary by state.
Revisit the rules periodically. Cottage food laws are amended often; a rule that was true two years ago may not be true today.
How this fits with the rest of your business
A cottage food permit or registration is separate from other steps you might take as your business grows — choosing a business structure, getting a general business license, opening a business bank account, or eventually renting commercial kitchen space once you outgrow the cottage food revenue cap or want to sell potentially-hazardous foods. None of those steps substitute for cottage food registration, and cottage food registration doesn't substitute for them either; treat them as a checklist, not an either/or. If you're also hiring help in the kitchen as you grow, that shifts you into an employer's obligations, which is a different set of rules than the cottage food program itself covers.
Frequently asked questions
Can I sell homemade food on Etsy, Instagram, or a website?
In many states, yes, as long as the buyer is in your state and the product and sale otherwise meet your state's cottage food rules — but some states restrict online sales more than in-person sales, and shipping across state lines generally isn't covered by cottage food law at all. Check your specific state's rule before listing anything online.
Do I need a business license to sell cottage food?
It depends on your state and city. Some cottage food programs are the only permission you need; others expect you to also register as a business and follow local licensing or home-occupation rules. Check with both your state cottage food program and your city or county clerk's office.
What happens if I sell more than my state's revenue cap?
Where a cap exists, exceeding it generally means you're expected to transition to a licensed commercial food operation with full inspection requirements — the specifics of the cap amount, how it's measured, and what happens if you exceed it vary by state, so confirm the details with your state cottage food program well before you get close to any limit.
Can I sell baked goods with cream cheese frosting or a custard filling?
Often not, because these are typically treated as "potentially hazardous" foods requiring refrigeration, which puts them outside most cottage food laws — but treatment of specific recipes (including some frostings) varies by state, so check your state's approved-foods guidance for the exact recipe you plan to sell.
Do I need to pay sales tax on cottage food sales?
It depends on your state — some treat cottage food sales like any other taxable retail sale, while others exempt certain food items; registration steps and exemptions vary. Check with your state's tax agency.
This article is general information, not legal, tax, or financial advice.
Frequently asked questions
Can I sell homemade food on Etsy, Instagram, or a website?
In many states, yes, as long as the buyer is in your state and the sale meets your state's cottage food rules — but some states restrict online sales more than in-person sales, and shipping across state lines generally isn't covered by cottage food law. Check your state's specific rule.
Do I need a business license to sell cottage food?
It depends on your state and city. Some cottage food programs are the only permission you need; others expect you to also register as a business and follow local licensing rules. Check with both your state cottage food program and your city or county clerk's office.
What happens if I sell more than my state's revenue cap?
Where a cap exists, exceeding it generally means transitioning to a licensed commercial food operation with full inspection requirements. The cap amount and what happens if you exceed it vary by state, so confirm with your state cottage food program.
Can I sell baked goods with cream cheese frosting or a custard filling?
Often not, because these are typically treated as potentially hazardous foods requiring refrigeration, which puts them outside most cottage food laws — but treatment of specific recipes varies by state, so check your state's approved-foods guidance.
Do I need to pay sales tax on cottage food sales?
It depends on your state — some treat cottage food sales like any other taxable retail sale, while others exempt certain food items. Registration and exemptions vary, so check with your state's tax agency.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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