Cottage food laws/Texas
Very permissive

Texas cottage food laws

One of the most permissive states in the country for home bakers.

Texas SB 541, signed in 2023 and now fully in effect, tripled the cottage food sales cap to $150,000 a year, expanded what cottage operators can make, and opened a registration path for time-and-temperature-control-for-safety (TCS) foods. Most home bakers still need no permit, no inspection, and no license, just a food handler card and proper labeling.

Last verified May 2, 2026•Texas Cottage Food Law (Health & Safety Code Ch. 437)
At a glance

Texas cottage food, quick facts.

📋
Permit
Not required for non-TCS goods
💰
Sales cap
$150,000 gross/year (inflation-adjusted starting 2026)
🌐
Online sales
Allowed
📦
Shipping in-state
Allowed (USPS, UPS, FedEx)
✈️
Shipping out-of-state
Not allowed under cottage food law
🎓
Training
Food Handler Certification required (every 2 years)
🏠
Inspection
Not required for non-TCS
How it works

How the Texas cottage food law actually works.

Texas governs cottage food under Chapter 437 of the Health & Safety Code, often just called the Cottage Food Law. It is one of the broadest cottage food programs in the United States. A home baker selling shelf-stable, non-potentially-hazardous foods (non-TCS) directly to consumers does not need a permit or inspection, does not need to register with the state, and is not subject to local health department licensing for those products.

Senate Bill 541 took effect on September 1, 2023 and rewrote large parts of the law. It raised the gross annual sales cap from $50,000 to $150,000 (indexed for inflation starting in 2026), let cottage operators sell at more venues, removed the in-person handoff requirement for many products, and created a new registration path so that bakers who want to sell TCS items (like buttercream that needs refrigeration, or certain cheesecakes) can do so legally if they register with DSHS and follow extra labeling rules.

Cottage food sales are limited to within Texas. You can sell online, take orders by phone, mail, or social media, ship within the state via USPS, UPS, or FedEx, and deliver in person across the entire state. Shipping out of state is not allowed under cottage food law, because it crosses into interstate commerce, which is regulated by the FDA and requires a commercial kitchen.

What you can sell

Allowed and prohibited foods.

✓Allowed
  • Cookies, brownies, biscotti
  • Cakes and cupcakes (without cream or cream-cheese frosting unless registered for TCS)
  • Pies that are non-TCS (fruit, pecan, etc.)
  • Breads, rolls, pastries, tortillas
  • Candies, fudge, caramels, chocolates
  • Roasted coffee beans and tea
  • Dehydrated fruits, vegetables, and meats (jerky)
  • Dry mixes (cookie mix, cornbread mix, drink mixes)
  • Granola, cereal, popcorn, snack mixes
  • Fruit pies, fruit butters, jams, jellies, preserves
  • Pickled fruits and vegetables (acidified, per recipe rules)
  • Frostings and icings that are shelf-stable (e.g. American buttercream made entirely with shortening, or royal icing)
  • Vinegars, mustards, popcorn balls, fudge
✕Prohibited
  • Cheesecakes (unless TCS-registered)
  • Cream pies, custard pies, meringue pies
  • Cream cheese frostings (unless TCS-registered)
  • Tres leches and other refrigeration-required cakes
  • Meat products (other than dehydrated jerky)
  • Canned vegetables, canned salsas (low-acid)
  • Fish, shellfish, or seafood
  • Dairy products other than what is baked into goods
  • Beverages requiring refrigeration

Anything that requires refrigeration to stay safe is presumed TCS. Texas does allow some TCS products if you register as a Cottage Food Production Operation (CFPO) with DSHS and add safe-handling labeling.

Where you can sell

Sales channels for Texas cottage bakers.

🤝
In-person / pickup
Allowed statewide. Pickup, delivery, farmers markets, festivals, fairs, pop-ups.
🌐
Online sales
Allowed. Take orders by website, social media, email, or phone.
📦
Shipping in-state
Allowed by USPS, UPS, FedEx, or any carrier, anywhere in Texas.
✈️
Shipping out-of-state
Not allowed. Out-of-state sales fall under federal interstate commerce rules.
🥕
Farmers markets
Allowed. No special permit required for non-TCS items.
🏪
Retail stores
Allowed in many cases. Cottage foods may be sold to retailers who resell directly to end consumers, with proper labeling.
🍽️
Restaurants
Allowed in many cases. Restaurants may sell cottage foods to end consumers if labeling rules are followed.
  • Sales must be to the end consumer. You may not sell wholesale to a distributor that re-sells to other businesses.
  • Cottage products cannot be served as ingredients in a restaurant menu item.
Labels

Label every product, exactly like this.

01
Name of the product
e.g. "Sugar Cookies" or "Banana Bread"
02
Name of the cottage food production operation
Your business name, or your own legal name.
03
Address of the operation, OR DSHS-issued ID number
Pre-SB 541 you had to print your home address. Operators registered as CFPOs with DSHS may now use a DSHS identification number instead, which is a major privacy upgrade.
04
Net weight or net volume
In both customary (oz/lb) and metric (g) units.
05
All ingredients in descending order by weight
Including sub-ingredients (e.g. "chocolate chips (sugar, cocoa, milk, soy lecithin, vanillin)").
06
Allergen statement
Identify the eight major allergens: milk, egg, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame.
07
Required disclaimer
The exact language is below. It must appear on every package.
Required disclaimer (copy verbatim)
This food is made in a home kitchen and is not inspected by the Department of State Health Services or a local health department.
  • TCS-registered operators must add safe-handling instructions and a temperature requirement (e.g. "Keep refrigerated below 41°F").
  • Labels must be in English. You may add other languages, but English is required.
  • If you sell to a customer who is consuming on-site (samples, individual cookies at a market), the disclaimer must still be displayed at the point of sale.
Sales cap

How much can you earn under Texas cottage law?

Cottage operators may earn up to $150,000 per year in gross annual revenue from cottage food sales. That cap is indexed to inflation starting in 2026, so it will rise each year. The cap is per individual operator, not per household. Earnings above $150,000 push the operator into commercial regulation: a permitted commercial kitchen, retail food establishment license, and inspection.

Training

Food safety training in Texas

Texas requires every cottage food operator to hold a current Food Handler Certification from a DSHS-accredited provider. The course is online, takes about two hours, and costs around $7 to $15. The certification is valid for two years and must be renewed. Keep a digital or printed copy with your records and be ready to show it on request.

DSHS Accredited Food Handler Programs (official list)
Authoritative list of providers Texas accepts. Always check here before paying.
→
ServSafe Food Handler
Common, low-cost online course accepted in Texas.
→
StateFoodSafety.com
Texas-specific food handler card, ~$8.
→
Learn2Serve by 360training
Texas DSHS-accredited handler course.
→
Registration

Registration, permits, and inspections in Texas

If you only sell non-TCS cottage foods, no registration is required. If you want to sell TCS items (cream-cheese-frosted cakes, certain cheesecakes, custard pies, etc.) under the SB 541 expansion, you must register with the Texas DSHS as a Cottage Food Production Operation (CFPO). Registration is renewed annually and requires you to follow extra labeling rules and hold a Food Manager Certification (a higher-level credential than a food handler card). Registration also lets you put a DSHS-issued ID number on your label instead of your home address.

Step-by-step

How to start a cottage bakery in Texas.

  1. 01
    Get your Food Handler Certification
    Complete a 2-hour DSHS-accredited online course. Save the certificate. Renew every 2 years.
    DSHS accredited training programs list →
  2. 02
    Decide non-TCS or TCS path
    If you stick to shelf-stable foods you can skip registration entirely. If you want to sell cream-cheese frostings, cheesecakes, or other TCS items, register with DSHS as a CFPO.
    DSHS Cottage Food Production page →
  3. 03
    Build your label template
    Include all 7 required pieces of information plus the home-kitchen disclaimer. A reusable template saves time and keeps you compliant on every order.
  4. 04
    Set up your storefront and sales channels
    Cakery gives you a free bakery page at cakerybakeries.com/your-bakery. Add your menu, prices, lead times, and pickup or delivery zones.
    Create a free Cakery page →
  5. 05
    Track your gross sales toward the $150K cap
    Keep clean records. Once you cross or expect to cross $150,000 in gross annual sales, you must move to a commercial kitchen and retail food establishment license.
  6. 06
    Check local rules
    Some Texas cities and counties layer their own rules on cottage operators (cottage signage, market vendor permits, business registration, sales tax collection). Confirm with your city and county.
Worth knowing

A few things Texas bakers should know.

  • Cottage foods cannot be sold across state lines. If a customer in Oklahoma orders a cake online, you cannot legally ship it under Texas cottage food law.
  • You must collect and remit Texas sales tax on most cottage food sales (bakery items sold by a baker are exempt as groceries in some cases, but candy, prepared individual servings, and some other goods are taxable). Register with the Texas Comptroller for a sales tax permit.
  • If you sell at farmers markets, the market itself may have its own paperwork (vendor agreement, product list, insurance). Cottage food law preempts most local food regs but does not preempt private market rules.
  • TCS-registered operators must use safe-handling labels and a temperature instruction in addition to all standard labeling requirements.
  • If you want to use shared commercial-kitchen space for some products and your home kitchen for others, the cottage food exemption only covers what you produce at home. Shared-kitchen products are commercial.
Resources

Bookmark these for Texas baking.

Official agency resources

Texas DSHS: Cottage Food Production
The official Texas Department of State Health Services hub for cottage food rules, registration, and FAQs.
→
Texas DSHS: Cottage Food FAQ
Plain-language Q&A from the regulator. Bookmark this for label and sales-channel questions.
→
Texas Comptroller: Sales Tax Registration
Register for a sales-and-use tax permit so you can collect and remit tax on taxable items.
→
Texas Secretary of State: DBA / Assumed Name
If you bake under a business name, file a DBA ("assumed name") with your county or the SOS.
→

Statute and rules text

Texas Health & Safety Code, Chapter 437 (full statute)
→
SB 541 (89th Legislature, 2023): bill text
→
Title 25 TAC §229.661: DSHS rule for cottage food production
→

Helpful resources for bakers

Texas Cottage Food Law (community site)
Veteran community-run resource with a deep FAQ, label generator, and SB 541 explainers.
→
Forrager: Texas guide
Forrager's plain-English Texas cottage food guide, kept up to date by an active editor.
→
Institute for Justice: Cottage Food
Tracks cottage food expansions and lawsuits nationally; useful context for where Texas fits.
→
Texas Bakers United (Facebook group)
Active community of Texas home bakers swapping label, pricing, and venue advice.
→
Texas Cottage Food Bakers (Facebook group)
Another active group; expect tips on local markets and DSHS questions.
→
Cakery Pricing Guide for Cottage Bakers
How Cakery handles your storefront, orders, and customer leads.
→
Recent changes

Recent and upcoming changes in Texas.

  • January 1, 2026The $150,000 sales cap begins annual inflation indexing. The number will adjust upward each year to track CPI.
  • September 1, 2023SB 541 took effect: cap raised to $150K, TCS-registration path created, in-person handoff requirement removed for most products, broader allowed-foods list, and DSHS ID numbers permitted on labels in place of home addresses.
FAQ

Texas cottage food FAQ.

Do Texas cottage bakers need a permit?
No. If you only sell non-TCS, shelf-stable foods directly to consumers in Texas, you do not need a permit, license, or inspection. You do need a current Food Handler Certification.
How much can I earn under Texas cottage food law?
Up to $150,000 in gross annual sales. The cap is indexed to inflation beginning in 2026 and rises each year.
Can I ship Texas cottage food to other states?
No. Out-of-state shipping crosses into federal interstate commerce, which requires an inspected commercial kitchen. You can ship anywhere in Texas via USPS, UPS, FedEx, or any carrier.
Can I sell cream cheese frosting in Texas?
Only if you register with DSHS as a Cottage Food Production Operation under the SB 541 TCS path, hold a Food Manager Certification, and add safe-handling and temperature labeling. Standard cottage operators cannot sell cream cheese frostings or other refrigeration-required products.
Do I have to use my home address on the label?
Not anymore. Operators registered with DSHS may use a DSHS-issued identification number instead. Unregistered operators selling only non-TCS products still must include the address on the label.
Do I need a sales tax permit?
Probably yes. Bakery items sold by a bakery for off-premises consumption are often tax-exempt as food, but many cottage products (candy, individual prepared servings, drink mixes) are taxable. Register with the Texas Comptroller and confirm what you sell.
Can I sell at farmers markets without a separate permit?
Yes. Texas does not require a separate cottage food permit for farmers markets. The market itself may require a vendor agreement or insurance, but the state does not.
Where do I report a problem or check if a product is allowed?
Contact the Texas DSHS Foods Group at the contact information on the official cottage food production page. They answer label, scope, and registration questions directly.
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Last verified May 2, 2026. This page is a plain-English summary of Texas cottage food laws and is not legal advice. Cottage food rules change, and local health departments often add their own requirements. Always confirm the current rules with the Texas agency listed in the official resources above before you sell, ship, or label a product.