The Lone Star State has long been a pioneer in food freedom, but the landscape for home-based food businesses changed dramatically following the implementation of Senate Bill 541 (SB 541). As we move through 2026, Texas remains one of the most favorable environments in the United States for cottage food producers.
Whether you are a hobbyist baker looking to sell your first batch of cookies or a seasoned entrepreneur scaling a home-based jam empire, understanding the nuances of the Texas Cottage Food Law is critical. This guide provides the most up-to-date information on what you can sell, where you can sell it, and how to ensure your business remains 100% compliant with state regulations.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific legal concerns or complex business structures, we recommend you consult an attorney licensed in the State of Texas.
What is the Texas Cottage Food Law?
The Texas Cottage Food Law is a set of regulations that allows individuals to produce certain "low-risk" food products in their primary residence and sell them directly to consumers without having to obtain a food manufacturer's license or operate out of a commercial kitchen.
In September 2025, the law underwent its most significant expansion to date. Before this update, producers were limited to a specific "allowed list" of foods and a relatively low income cap. Today, Texas has shifted to an "exclusion-based model," meaning that almost any food produced at home is legal to sell unless it is specifically prohibited by the state.
The 2025-2026 Shift: Why It Matters
The passage of SB 541 tripled the annual income limit and opened the door for "Time and Temperature Control for Safety" (TCS) foods—items that require refrigeration—which were previously strictly forbidden. This has turned Texas into a "Food Freedom" leader, allowing home chefs to sell products like cheesecakes and cream-filled pastries that are banned in many other states.
Allowed vs. Prohibited Foods: The Exclusion Model
The most important rule in 2026 is that the Texas Department of State Health Services (DSHS) no longer tells you what you can sell; instead, it tells you what you cannot sell. If a food item is not on the prohibited list, it is generally fair game for a cottage food operation.
❌ The Prohibited List (What You Cannot Sell)
Under Texas law, you are strictly prohibited from selling the following items from a home kitchen:
- Meat and Poultry Products: This includes any food containing meat (beef, pork, lamb) or poultry (chicken, turkey, duck). For example, you cannot sell meat pies, beef jerky, or kolaches containing sausage or bacon.
- Seafood: All fish, shellfish, and seafood products are prohibited.
- Ice and Frozen Products: You cannot sell shaved ice, ice cubes, ice cream, frozen custard, gelato, sorbet, or popsicles. (Note: While you can sell refrigerated items, you cannot sell frozen ones that must stay frozen to maintain their integrity).
- Low-Acid Canned Goods: This refers to canned vegetables or other items with a pH higher than 4.6. Examples include canned corn, green beans, or home-canned soups.
- Cannabis Products: Any food containing CBD (cannabidiol) or THC (tetrahydrocannabinol) is prohibited.
- Raw Milk: You cannot sell raw milk or products made directly from raw milk.
✅ Allowed Foods (The "Everything Else" List)
Because Texas uses an exclusion model, the list of allowed foods is virtually endless. Popular examples include:
- Baked Goods: Cakes, cookies, breads, pastries, and doughnuts.
- Candy and Confections: Toffee, chocolate-covered nuts, truffles, and hard candies.
- Preserves: Jams, jellies, and fruit butters (must be high-acid fruit).
- Dry Goods: Coffee beans, dried herbs, spice mixes, popcorn, and cereal treats.
- TCS Foods (New!): Foods that require refrigeration, such as cheesecakes, custard pies, and cream puffs, are now allowed but require DSHS registration.
- Pickled and Fermented Foods: Pickles, sauerkraut, and kombucha (provided they are non-alcoholic).
Sales Limits and Financial Requirements
One of the biggest hurdles for growing businesses used to be the $50,000 annual sales cap. As of 2026, that cap has been significantly increased to accommodate the success of Texas entrepreneurs.
The $150,000 Annual Gross Income Cap
A Texas Cottage Food Production Operation (CFPO) is defined as having an annual gross income of $150,000 or less from the sale of cottage foods.
Key Financial Rules for 2026:
- Inflation Indexing: Starting in 2026, the $150,000 cap is adjusted annually based on the Consumer Price Index (CPI). Always check the DSHS website at the start of the year for the newly adjusted limit.
- Gross vs. Net: The limit applies to your gross sales (total money taken in), not your profit after expenses.
- Nonprofit Advantage: 501(c)(3) nonprofit organizations can now operate as cottage food producers, provided the food is made in the home of a director or officer.
Labeling Requirements: The Non-Negotiable Standard
The most common reason for compliance issues in Texas is improper labeling. The law is very specific about what must appear on your packaging. If your item is too large for a label (like a wedding cake), the information must be provided on an invoice or receipt given to the customer.
1. The Mandatory Statement (Exact Wording)
Every cottage food product sold in Texas must feature the following statement in ALL CAPS:
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
2. General Label Information
In addition to the mandatory statement, your label must include:
- The common or usual name of the product (e.g., "Chocolate Chip Cookies").
- Major Allergen Disclosure: You must list if the product contains any of the "Big 9" allergens: Milk, Eggs, Fish, Shellfish, Tree Nuts, Peanuts, Wheat, Soy, and Sesame.
- Your Information: Your business name and physical home address.
- Pro Tip: Since 2025, you can register with DSHS to receive a Unique Identifier Number. If you have this number, you can use it on your labels instead of your home address to protect your privacy.
3. Special Requirements for TCS (Refrigerated) and Wholesale Foods
If you are selling foods that require refrigeration or selling through a wholesale vendor, you must add:
- Production Date: The exact date the food was made.
- Safe Handling Instructions (for TCS foods only): This must be in at least 12-point font and say:
"SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption."
Where and How You Can Sell
Texas offers incredible flexibility in terms of sales venues. Unlike some states that restrict sales to farmers markets, Texas allows you to find your customers wherever they are.
Direct-to-Consumer Sales
You can sell your products directly to consumers anywhere in Texas. This includes:
- Your Home: Customer pickups or "porch pickups."
- Farmers Markets and Farm Stands.
- Festivals, Fairs, and Community Events.
- Direct Delivery: You can deliver the food to the customer's home or a neutral meeting spot.
Online Sales and Shipping
- Internet Sales: You can sell your food on your own website, social media (Facebook/Instagram), or platforms like Etsy.
- Delivery Requirement: For online sales, the operator, an employee, or a household member must personally deliver the food to the customer.
- Shipping: You may ship cottage foods, but only within the borders of Texas (Intrastate). Shipping across state lines (Interstate) is governed by federal FDA regulations and is not allowed under cottage food law.
Wholesale and Third-Party Sales (The "Cottage Food Vendor")
A major update in the new law allows you to sell "Non-TCS" foods (those that don't need refrigeration) to a third party for resale.
- Cottage Food Vendor: You can sell your products to a restaurant, a small boutique, or a grocery store. These entities are called "Cottage Food Vendors."
- Restrictions: You cannot sell TCS (refrigerated) foods wholesale. Only direct-to-consumer sales are allowed for items like cheesecakes.
Registration, Permits, and Training
One of the best things about the Texas Cottage Food Law is the lack of "red tape." However, there are a few mandatory steps you must take before selling your first item.
1. Food Handler's Certificate (Mandatory)
Every cottage food operator in Texas must complete a state-accredited food handler's training course.
- Cost: Usually $10–$20.
- Format: Can be completed online in about 2 hours.
- Validity: Certificates are generally valid for two years. Keep a copy of your certificate on file; you are required to show it to DSHS if they ever receive a complaint about your operation.
2. DSHS Registration (Conditional)
Most Texas cottage food producers do not need to register with the state. However, registration is mandatory if:
- You want to sell TCS (refrigerated) foods.
- You want to sell your products wholesale.
- You want to use a Registration Number on your labels instead of your home address.
3. No Local Permits
State law explicitly prohibits local health departments (like those in Austin, Dallas, or Houston) from requiring a permit or license for a cottage food operation. If a local inspector tries to tell you that you need a "home occupation permit" for food, they are likely mistaken. However, you must still follow local zoning laws regarding "home-based businesses" (e.g., you can't have 100 cars a day blocking your street).
2026 Compliance Checklist for Texas Home Bakers
Follow these steps to ensure your business is legal from day one:
- Verify Your Product: Ensure your food is not on the "Prohibited List" (no meat, no seafood, no ice products).
- Get Certified: Complete a Texas-accredited Food Handler's Course and save the PDF.
- Check Your Revenue: Track your sales to ensure you stay under the $150,000 (inflation-adjusted) annual cap.
- Register (If Necessary): If you are selling cheesecakes, custard, or selling to a local shop, register with the Texas DSHS.
- Design Your Labels: Create a label template that includes the mandatory "NOT INSPECTED" statement, allergen info, and your address/ID number.
- Review Packaging: Ensure all food is packaged to prevent contamination.
- Plan Your Delivery: If selling online, confirm that you or a household member can personally deliver the items within Texas.
- Sales Tax: Register for a Texas Sales and Use Tax Permit. While most bakery items are exempt from sales tax, things like candy or "ready-to-eat" meals might not be. Consult the Texas Comptroller for details.
Frequently Asked Questions (FAQ)
1. Do I need a kitchen inspection to start?
No. Texas law specifically prohibits health departments from inspecting your home kitchen unless they receive a formal complaint involving a foodborne illness or an immediate health hazard. You can start selling immediately after getting your Food Handler's Certificate.
2. Can I sell my homemade bread to a local coffee shop?
Yes! Under the 2025/2026 updates, you can sell "Non-TCS" foods like bread, cookies, and jams to a third party (the "Cottage Food Vendor") for resale. You must register with DSHS for wholesale sales and include the production date on the label.
3. Can I sell cheesecakes that need to stay in the fridge?
Yes. Since September 2025, Time and Temperature Control for Safety (TCS) foods are allowed. You must register with DSHS, maintain a temperature of 41°F or colder during transport, and include safe handling instructions on your label.
4. Is there a limit on how much I can sell?
Yes. Your gross annual income from cottage food sales must not exceed $150,000. This amount is adjusted for inflation every year starting in 2026. If you exceed this limit, you must move to a commercial kitchen and get a manufacturer's license.
5. Can I ship my cookies to a relative in Oklahoma?
No. The Texas Cottage Food Law only allows for sales and shipping within the state of Texas. Shipping across state lines is considered interstate commerce and requires federal licensing and a commercial kitchen.
Final Thoughts: Scaling Your Texas Home Business
Texas has created a "Goldilocks" environment for food entrepreneurs—not too restrictive, not too loose, but just right for growth. With a $150,000 income cap and the ability to sell almost anything from your home kitchen, there has never been a better time to be a home baker in the Lone Star State.
By prioritizing food safety, mastering your labeling, and keeping an eye on the annual inflation-adjusted sales limits, you can build a thriving brand right from your kitchen counter.
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