2026 is officially the year of the Food Freedom Revolution. Across the United States, the legal landscape for home-based food entrepreneurs is shifting from restrictive and confusing to open and empowering. We’ve seen major legislative wins in Michigan, Texas, Georgia, and beyond, opening doors for home bakers to scale their businesses like never before.
Whether you're selling artisanal sourdough or custom-decorated cookies, staying compliant is no longer just about avoiding fines—it's about leveraging the law to grow a sustainable brand.
In this guide, we break down the 2026 Cottage Food Landscape, including the states that now allow perishable foods and the new revenue caps that actually account for inflation.
What's New in 2026?
The biggest trend this year is the move away from "cottage food" as a restrictive category and toward "Food Freedom." Here are the high-level shifts you need to know:
- Inflation Adjustments are Standard: States like Oregon, California, and Texas have finally started indexing their revenue caps to inflation. Your earning potential now grows with the economy.
- The "Refrigeration Barrier" is Breaking: 9+ states now allow for Time/Temperature Control for Safety (TCS) foods, meaning items like cream cheese frosting and certain savory bakes are no longer off-limits in a home kitchen.
- Digital-First Sales: Almost every state now allows for online ordering and third-party delivery, recognizing that the modern bakery lives on Instagram and DoorDash just as much as at the Farmers' Market.
2026 Major Legislative Winners
| State | The 2026 Change | New Revenue Cap |
|---|---|---|
| Michigan | HB 4122 (Effective March 2026) | $50,000 - $75,000 |
| Texas | SB 541 Inflation Indexing | $150,000 |
| Georgia | HB 398 (Food Freedom) | None |
| Tennessee | HB 130 Amendment | None |
| North Dakota | SB 2386 (Interstate Commerce) | None |
TCS Foods: The Next Frontier
For years, "cottage food" meant "shelf-stable." If it needed a fridge, it was a no-go. In 2026, 9 states have officially legalized the production of TCS (Time/Temperature Control for Safety) foods in home kitchens:
- California, Iowa, Montana, North Dakota, Oklahoma, Utah, Wyoming, Texas, and Tennessee.
These states allow products containing poultry or dairy, provided you meet specific food safety training requirements and labeling standards. This is a game-changer for bakers wanting to offer cheesecakes, cream-filled pastries, or savory pies.
The 2026 State-by-State Encyclopedia
Use the tool below to find the specific 2026 regulations for your state. We've updated all revenue limits, venue restrictions, and permit requirements to reflect the most current laws.
Cottage Food Laws by State (2026)
Showing 51 of 51 states and regions
Launch Your Home Bakery in 2026: The New Playbook
Gone are the days of just "selling some cookies to friends." In 2026, the successful home baker is a mini-conglomerate. Here is your 3-step launchpad:
1. Digital Presence First
In 2026, your "storefront" is your digital presence. Most states now allow online sales and third-party delivery.
- Action: Set up an optimized ordering system (like Square or Butterbase) before you even fire up the oven.
- Why: It allows you to track revenue limits in real-time and manage pre-orders effectively.
2. Leverage "Food Freedom" Ingredients
If you're in a Food Freedom state (or one of the 9 TCS-friendly states), don't limit yourself to just bread and brownies.
- Action: Research recipes that utilize the new allowances for dairy or poultry. Savory pies, cheesecakes, and acidified foods (like pickles) are high-margin items that can differentiate your brand.
3. Master the "Inflation-Adjusted" Cap
With revenue caps hitting $150,000 in states like Texas and $250,000 in Florida, you need a professional accounting setup.
- Action: Use a tool like Butterbase to track your ingredient costing and manage sales.
- Why: You don't want to accidentally cross a threshold that requires you to move to a commercial kitchen before you're ready.
2026 Labeling & Compliance Checklist
Even in Food Freedom states, labeling is non-negotiable. Here is the 2026 standard for home bakery packaging:
- The "Made in a Home Kitchen" Disclaimer: Every state requires some version of this. (e.g., "This product was produced in a private residence that is exempt from state licensing and inspection.")
- Ingredient List: In descending order by weight.
- Top 9 Allergen Warning: Milk, Eggs, Fish, Crustacean shellfish, Tree nuts, Peanuts, Wheat, Soybeans, and Sesame.
- Net Weight/Volume: Essential for consumer protection.
- Production Date: Now specifically required in states like Texas for certain items.
Scaling Beyond the Home Kitchen
What happens when you hit that $150,000 limit? Or when you want to start shipping interstate (now legal for North Dakota residents)?
2026 has seen a massive rise in Micro-Manufacturing Hubs—shared commercial spaces designed specifically for former cottage food operators. If you're outgrowing your kitchen, look for:
- Ghost Kitchens: Focus purely on delivery/pickup.
- Commissary Hubs: Share equipment and storage with other scaling bakers.
- Incubator Kitchens: Often subsidized by local governments to support food entrepreneurship.
How Butterbase Helps You Stay Legal (and Profitable)
Navigating 50 different sets of laws is exhausting. Butterbase was built to take the legal weight off your shoulders so you can focus on the baking.
- Real-Time Revenue Tracking: We alert you as you approach your state's specific 2026 revenue cap.
- Automated Costing: Know exactly how much profit you're making on every sourdough loaf or macaron box.
- Compliant Label Generation: Input your ingredients, and we’ll help you generate labels that meet state standards.
Ready to turn your home kitchen into a 2026 powerhouse? Join the Butterbase Beta today and let us handle the compliance while you handle the heat.
Disclaimer: While we strive for absolute accuracy, cottage food laws are subject to rapid change. Always verify with your local health department or Department of Agriculture before launching your business.