New York has long been a hub for culinary innovation, and for home-based entrepreneurs, the state's Home Processor Exemption—governed by Article 20-C of the Agriculture and Markets Law—provides a vital pathway to turn a passion for baking into a legitimate business. Whether you are whipping up batches of artisanal granola in a Brooklyn apartment or simmering apple butter in a Hudson Valley farmhouse, understanding the nuances of New York's specific regulations is the first step toward compliance and success.

In 2026, the landscape for New York cottage food producers has become clearer yet more structured. With specific sales limits, mandatory safety training, and some of the most unique food restrictions in the country, navigating these laws requires a diligent approach. This guide provides a comprehensive breakdown of everything you need to know to operate a legal home bakery in the Empire State.

Understanding New York Article 20-C

The foundation of New York's cottage food industry is Article 20-C. Under standard New York law, any "food processing establishment" must be licensed and inspected. However, the state provides an Exemption for Home Processors, allowing individuals to prepare certain non-potentially hazardous foods in their private home kitchens without a commercial license.

This exemption is not a "free-for-all." It is a specific legal status granted by the New York State Department of Agriculture and Markets (NYSDAM). To qualify, you must register your business and strictly adhere to the list of approved food items and operational constraints.

The Purpose of the Exemption

The primary goal of the Home Processor Exemption is to encourage small-scale economic development while protecting public health. By limiting the types of food allowed to those that do not require refrigeration (shelf-stable), the state minimizes the risk of foodborne illnesses like Salmonella or Listeria that can thrive in temperature-sensitive environments.

The 2026 Sales Limit: $50,000 Annual Gross Sales

One of the most critical updates for New York home processors in 2026 is the clarification of revenue caps. While previous years saw shifts toward unlimited potential, the current regulatory framework for registered Home Processors under the standard exemption path maintains an annual gross sales limit of $50,000.

Why the $50,000 Limit Matters

This limit serves as a threshold between a "cottage" operation and a "commercial" enterprise.

Tracking Revenue: You are required to maintain accurate financial records. If your gross sales (total revenue before expenses) exceed $50,000 in a calendar year, you are no longer eligible for the Home Processor Exemption.
Transitioning to Commercial: Once you surpass the $50,000 mark, you must transition your operations to a licensed commercial kitchen and obtain a full Article 20-C Food Processing License.
Tax Compliance: This revenue is considered taxable income. Registering for a Sales Tax Certificate of Authority is a separate but necessary step for any New York business selling taxable goods.

Mandatory 2-Hour Food Safety Course

In a move to increase consumer safety, New York now requires all new and renewing home processors to complete a mandatory 2-hour food safety course. This requirement stems from recent amendments to Article 20-C aimed at ensuring that every individual preparing food for public consumption understands the fundamentals of cross-contamination, allergen management, and sanitation.

What the Course Covers

The 2-hour curriculum is designed to be accessible but thorough. Key topics include:

Personal Hygiene: Proper handwashing techniques and health requirements for food handlers.
Cleaning vs. Sanitizing: The difference between removing visible dirt and killing microscopic pathogens.
Allergen Control: Preventing "hidden" allergens from entering products and proper labeling.
Safe Ingredient Sourcing: Ensuring all raw materials come from approved, commercial sources.
Time and Temperature Control: Even though cottage foods are shelf-stable, understanding the "Danger Zone" is vital for overall food safety.

Note: You must obtain a certificate of completion from an approved provider (such as those recognized by NYSDAM or the NYC Health Academy) and submit it as part of your registration package.

Approved vs. Prohibited Foods in New York

New York's list of allowed foods is highly specific. Unlike some states that allow any "non-perishable" item, New York has "quirks" that catch many bakers off guard.

The "Approved" List

You may manufacture the following items in your home kitchen:

Baked Goods: Breads (excluding fruit/vegetable breads), rolls, biscuits, bagels, muffins, cookies, and cakes (without cream/custard fillings).
Fruit Pies: Double-crust fruit pies are allowed. Single-crust pies or those with "soggy" fillings (like pumpkin or custard) are generally prohibited.
Jams, Jellies, and Marmalades: Made from high-acid fruits only.
Candy: Most candies are allowed, including brittles, fudges, and hard candies. Crucially, chocolate-covered items are PROHIBITED (see below).
Snack Mixes: Granola, trail mix, and caramel corn using commercially processed ingredients.
Dry Mixes: Soup mixes, spice rubs, and coffee beans, provided the ingredients are purchased from commercial sources.

The "Prohibited" List (The NY Quirks)

New York is famous for two specific prohibitions that differ from many other states:

No Chocolate or Chocolate-Covered Items: New York prohibits the "tempering" of chocolate in home kitchens. This is because the state believes home kitchens lack the controlled environment necessary to ensure that chocolate—which does not undergo a high-heat "kill step" during the final coating process—is safe from pathogens.
No Fruit or Vegetable Breads: You cannot sell banana bread, zucchini bread, or pumpkin bread under the Home Processor Exemption. These items are considered "moist" and potentially hazardous because their high water activity (aw) can support the growth of mold or bacteria if not refrigerated.

Other Prohibited Items:

Pickles, relishes, and salsas (these require a "Scheduled Process" from a food lab).
Fermented foods (Kombucha, Sauerkraut).
Cheesecakes, cream pies, or anything requiring refrigeration.
Meat, poultry, or fish products.

Labeling Requirements: The Exact Wording

Proper labeling is not just a branding exercise; it is a legal requirement in New York. Every product you sell must have a label firmly attached to the package with the following information:

Common Name of the Product: e.g., "Sea Salt Sourdough Bread."
Net Quantity: Weight or count of the product.
Ingredient List: Listed in descending order of predominance by weight.
Allergen Declaration: You must clearly state if the product contains any of the "Big 9" allergens (Milk, Eggs, Fish, Crustacean Shellfish, Tree Nuts, Peanuts, Wheat, Soybeans, and Sesame).
Processor Information: Your name and the full address of the home kitchen where the food was produced.
The Mandatory Statement: The label MUST include the following exact phrase in a clear, conspicuous font:

"Made in a Home Kitchen"

Where and How You Can Sell

New York is relatively generous regarding where home processors can sell their goods, provided the transactions stay within the state.

Direct-to-Consumer: You can sell from your home, at farmers' markets, craft fairs, and flea markets.
Wholesale: You are permitted to sell your products to local grocery stores, cafes, and restaurants, provided they are properly labeled and pre-packaged.
Online Sales & Shipping: You can take orders through a website or social media. However, you can only ship to customers located within New York State. Crossing state lines turns your business into an interstate commerce operation, which falls under FDA jurisdiction and requires a commercial facility.

Step-by-Step Compliance Guide for 2026

If you are ready to launch, follow these steps to ensure you are 100% legal:

Step 1: Check Your Water Source

If your home is on a private well, you must have your water tested for coliform bacteria by a NYS-certified lab. A copy of the "Negative" or "Satisfactory" test results must be included with your registration. If you are on municipal (city) water, this step is not required.

Step 2: Complete the 2-Hour Food Safety Course

Enroll in an approved online or in-person course. Save your certificate; you will need to upload or mail it with your application.

Step 3: Review Your Ingredients

Ensure every ingredient you use is "commercially processed." For example, you cannot use homegrown dried herbs in your spice mix; the herbs must be purchased from a commercial supplier.

Step 4: Register with NYSDAM

Complete the Home Processor Registration Request Form (FSI-898). You will need to list every product you intend to sell. There is currently no fee for this registration in New York, making it one of the most accessible states to start in.

Step 5: Create Your Labels

Design your labels to include all required information, especially the "Made in a Home Kitchen" statement.

Step 6: Set Up Your Record-Keeping

Establish a system to track your gross sales to ensure you stay under the $50,000 annual limit.

FAQ: New York Cottage Food Law

1. Can I sell my homemade cookies to a local coffee shop? Yes. New York allows wholesale sales. You can sell your pre-packaged, properly labeled cookies to cafes, restaurants, and grocery stores, provided the shop is located within New York State.

2. Is there a fee to register as a home processor? No. As of 2026, the New York State Department of Agriculture and Markets does not charge a fee for the Home Processor Exemption registration, though you must renew it every two years.

3. Do I need to have my home kitchen inspected? Generally, no. NYSDAM does not conduct routine inspections for home processors. However, they reserve the right to inspect your kitchen if a complaint is filed or if a foodborne illness is traced back to your products.

4. Can I sell chocolate-covered strawberries? No. New York specifically prohibits chocolate-covered items under the home processor exemption. To sell these, you would need to operate out of a licensed commercial kitchen with a full Article 20-C license.

5. Can I ship my baked goods to my cousin in New Jersey? No. The Home Processor Exemption only applies to sales within New York. Shipping across state lines requires compliance with federal FDA regulations and a commercial food processing license.

Official Resources and Citations

To ensure you have the most up-to-date information, always consult official state sources:

NYSDAM Home Processing Overview: agriculture.ny.gov/food-safety/home-processing
Article 20-C of the Agriculture and Markets Law: NYS Assembly Bill Search
NYSDAM Food Safety Training: agriculture.ny.gov/food-safety/food-safety-training
FSI-898 Registration Form: NYSDAM Forms Page

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Requirements can change; always verify with the New York Department of Agriculture and Markets before beginning operations.

New York Cottage Food Law: Home Bakery Requirements 2026