Michigan cottage food laws
Newly expanded in March 2026: $50K cap, $75K for high-priced items, online sales, and shipping now allowed.
Michigan's Cottage Food Law was significantly expanded effective March 24, 2026. The annual sales cap rose from $25,000 to $50,000 ($75,000 for products priced at $250 or more per unit) and is indexed to the Detroit CPI starting October 1, 2026. The new law also legalized online sales, in-state shipping, and third-party food delivery, provided the producer offers consumers an opportunity for direct two-way communication before the sale. No license, no fee, and no inspection are required.
Michigan cottage food, quick facts.
How the Michigan cottage food law actually works.
Michigan governs cottage food under MCL 289.4101 et seq., administered by the Michigan Department of Agriculture and Rural Development (MDARD). For more than a decade the law was very restrictive: a $25,000 sales cap, in-person handoff only, and no shipping. That changed on March 24, 2026, when a major reform took effect.
Under the new law, the gross annual sales cap is $50,000 for most products, and $75,000 if the product sells for $250 or more per unit (think tiered wedding cakes). Beginning October 1, 2026 the cap is adjusted annually using the Detroit Consumer Price Index, so it will rise each year.
The reform also opened up sales channels. Cottage operators can now sell online, ship within Michigan, and use third-party food delivery platforms. The one twist: the producer must give the consumer an opportunity for direct two-way communication (such as a video call, virtual meeting, or comparable contact) before the sale. This is meant to preserve the traditional direct-to-consumer relationship.
There is still no license, no application, no fee, and no inspection for Michigan cottage food. Producers must follow MDARD labeling rules and stick to the allowed shelf-stable, non-potentially hazardous foods list.
Allowed and prohibited foods.
- Cookies, brownies, bars, biscotti
- Cakes and cupcakes (without perishable fillings or frostings)
- Breads, rolls, muffins, scones, pastries
- Fruit pies (apple, cherry, blueberry, peach)
- Pecan pie and other shelf-stable pies
- Candies, fudge, caramels, chocolates, brittles
- Dry baking mixes (cookie mix, brownie mix, drink mixes)
- Granola, granola bars, snack mixes
- Popped popcorn, kettle corn, popcorn balls, caramel corn
- Jams, jellies, preserves, fruit butters
- Roasted coffee beans, dry tea blends, dry herbs
- Vinegars and dry mixes for vinegars
- Cream-filled pastries, custards, cheesecakes
- Cream cheese frostings (anything requiring refrigeration)
- Tres leches and other refrigeration-required cakes
- Meat, poultry, fish, shellfish
- Low-acid canned vegetables and salsas
- Pumpkin pies and pies with custard or cream
- Garlic-in-oil and other low-acid mixtures
Anything that requires refrigeration to stay safe is presumed potentially hazardous and is excluded. Michigan does not have a TCS-registration path; if you want to sell cream-filled or refrigerated products, you need an MDARD food license and a permitted facility.
Sales channels for Michigan cottage bakers.
- Third-party food delivery platforms are now allowed under the 2026 reform.
- The two-way communication requirement is satisfied by a video call, virtual meeting, or comparable contact opportunity. Email or text alone is not enough; the producer must offer real-time interaction.
Label every product, exactly like this.
Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture and Rural Development.
- Required label text must be in 11-point font or larger.
- An optional MSU Product Center registration program lets producers use a registration number on the label in place of their home address for privacy. This is voluntary.
- Online listings should include the same disclaimer.
How much can you earn under Michigan cottage law?
Gross annual sales must stay at or below $50,000. If you sell products priced at $250 or more per unit (tiered wedding cakes, large grazing boards), the cap rises to $75,000. Beginning October 1, 2026 both caps adjust annually using a 3-year average Detroit Consumer Price Index. Crossing the cap pushes the producer into commercial regulation: licensed facility, inspection, and food establishment license through MDARD.
Food safety training in Michigan
Michigan does not require food safety training for cottage food operators. Many bakers complete a low-cost ServSafe Food Handler course as a personal credibility step or because a market or event requires it.
Registration, permits, and inspections in Michigan
There is no state cottage food registration. The MSU Product Center offers a voluntary registration that lets producers use a registration number on their labels in place of their home address. This is a privacy option, not a legal requirement. Some local governments may require a basic business license or zoning approval.
How to start a cottage bakery in Michigan.
- 01Confirm your products are non-potentially hazardousStick to shelf-stable items. If your product needs refrigeration, you need a full MDARD food license, not the cottage exemption.MDARD Cottage Food page →
- 02Build a label templateProduct name, producer name and address, net weight in both ounces and grams, ingredients by weight, allergen statement, and the required disclaimer in 11-point or larger font.
- 03Decide on online and shipping channelsIf you plan to sell online or ship within Michigan, set up a way for the customer to have direct two-way contact with you before the sale (video call, virtual meeting, or similar).
- 04Set up your storefrontCakery gives you a free bakery page at cakerybakeries.com/your-bakery. Add menu, prices, lead times, pickup or delivery zones, and a way for customers to message or video-call you to satisfy the two-way communication requirement.Create a free Cakery page →
- 05Track gross sales toward the capTag $250+ per-unit sales separately. Crossing $50K (or $75K for high-priced items) pushes you into commercial regulation.
- 06Register for state and local sales taxRegister with the Michigan Department of Treasury for sales tax, and confirm any local business license requirements with your city or county.Michigan Treasury: Sales and Use Tax →
A few things Michigan bakers should know.
- The March 24, 2026 reform was a major expansion. The previous version of the law had a $25K cap, no online sales, and no shipping. Make sure any older Michigan cottage food guide you reference is dated 2026 or later.
- The two-way communication requirement is the most distinctive part of the new law. Plan for video calls, virtual meetings, or another comparable interaction option before each online or shipping sale.
- Sales caps adjust every October 1 using the Detroit Consumer Price Index. The number you see today will rise each year.
- Cottage food still cannot be sold to retail stores, restaurants, or wholesalers. Direct-to-consumer remains the rule.
- An optional MSU Product Center registration provides a label-privacy option in place of your home address.
Bookmark these for Michigan baking.
Official agency resources
Statute and rules text
Helpful resources for bakers
Recent and upcoming changes in Michigan.
- October 1, 2026Beginning October 1, 2026 and each October 1 thereafter, the cap adjusts annually using a 3-year average Detroit Consumer Price Index. Both the $50K and $75K caps will rise.
- March 24, 2026Michigan's expanded cottage food law took effect. The cap rose from $25,000 to $50,000 ($75,000 for products priced $250+/unit), and online sales, in-state shipping, and third-party food delivery were legalized (with a two-way communication requirement).
Michigan cottage food FAQ.
What is Michigan's cottage food sales cap in 2026?
Can I now sell online and ship?
Do Michigan home bakers need a license or registration?
What is the required label disclaimer?
Can I sell cream cheese frostings or cheesecakes?
Can I sell to retail stores or restaurants?
Can I ship out of state?
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