Cottage food laws/Vermont
Moderate

Vermont cottage food laws

Vermont's first true cottage food law: $30,000 cap, free training, online sales allowed.

Vermont passed Act 42 in 2025, creating a formal Cottage Food Operator exemption with a $30,000 annual gross sales cap, mandatory free online training, and a yearly registration filing by January 15. Online and mail-order sales direct to consumers are allowed; out-of-state shipping is not.

Last verified May 2, 2026•Vermont Cottage Food Operator (Act 42, 2025)
At a glance

Vermont cottage food, quick facts.

📋
Permit
Not required for Cottage Food Operators (annual exemption filing instead)
💰
Sales cap
$30,000 gross/year (Cottage Food Operator exemption)
🌐
Online sales
Allowed direct-to-consumer in Vermont
📦
Shipping in-state
Allowed by mail order and common carrier within Vermont
✈️
Shipping out-of-state
Not allowed
🎓
Training
Required (free Vermont Department of Health online training)
🏠
Inspection
Not required for exempt operators
How it works

How the Vermont cottage food law actually works.

Vermont's home-baker landscape was rewritten by Act 42, signed June 2, 2025 and effective July 1, 2025. Before Act 42, Vermont treated home bakers as either home bakeries (capped at $125 per week and requiring a $100 license) or as license-exempt processors capped at about $10,000 per year. Act 42 replaced both with a single Cottage Food Operator exemption that lets bakers sell up to $30,000 a year in shelf-stable, non-TCS foods without a manufacturing license.

The exemption is administered by the Vermont Department of Health, Food and Lodging Program. Cottage Food Operators must complete a free Vermont Department of Health online training (License Exempt Food Processors and Cottage Food Operators) before claiming the exemption, and must file an annual exemption form by January 15 each year. There is no fee.

Vermont allows direct-to-consumer online sales and mail order to in-state customers under the Cottage Food Operator exemption, plus farmers markets, fairs, festivals, and home pickup. Sales must stay direct to the consumer and inside Vermont. Out-of-state shipping requires a commercial license and is treated as interstate commerce. Operators who pass the $30,000 cap or want to wholesale must move up to a licensed home bakery or commercial food manufacturer.

Labels must include the new home-kitchen disclaimer in at least 10-point type. Vermont also offers a separate small food processor exemption for up to $10,000 in annual sales of certain processed foods, and the two exemptions can be stacked.

What you can sell

Allowed and prohibited foods.

✓Allowed
  • Cookies, brownies, biscotti, bars
  • Cakes and cupcakes (without cream or cream-cheese fillings)
  • Breads, rolls, biscuits, muffins, scones
  • Fruit pies and other non-TCS pies
  • Candies, fudge, brittles, caramels
  • Jams, jellies, fruit butters, preserves (high-acid only)
  • Granola, popcorn, snack mixes, dry mixes
  • Roasted coffee beans, dry tea blends, dried herbs
  • Maple syrup and honey from your own production
  • Vinegars, dry rubs, dehydrated fruits and vegetables
✕Prohibited
  • Quiche, cheese danish, cheesecake, and other refrigerated baked goods
  • Cream cheese frostings and cream-filled pastries
  • Custards, cream pies, meringue pies
  • Meat, poultry, and seafood products
  • Low-acid canned foods (vegetables, soups) without an approved process
  • Fresh juices and other refrigerated beverages

If a food needs to be kept cold to stay safe, it does not qualify for the Cottage Food Operator exemption. Cheesecakes and quiche are explicitly called out by the Vermont Department of Health as not eligible.

Where you can sell

Sales channels for Vermont cottage bakers.

🤝
In-person / pickup
Allowed statewide. Pickup at home, farmers markets, fairs, festivals, pop-ups.
🌐
Online sales
Allowed direct-to-consumer through your own website, social media, or mail order, as long as the buyer is in Vermont.
📦
Shipping in-state
Allowed by USPS, UPS, FedEx, or any common carrier within Vermont.
✈️
Shipping out-of-state
Not allowed under the Cottage Food Operator exemption.
🥕
Farmers markets
Allowed. Many markets ask for a copy of your exemption filing.
🏪
Retail stores
Not allowed under the exemption (wholesale and retail resale require a commercial license).
🍽️
Restaurants
Not allowed under the exemption.
  • Sales must be direct to the end consumer. Selling through a third-party reseller, store, or restaurant pushes you into commercial licensing.
  • Operators can stack the Cottage Food Operator exemption ($30,000) with the separate license-exempt food processor exemption ($10,000) for certain processed foods.
Labels

Label every product, exactly like this.

01
Product common name
e.g. "Honey Oat Bread".
02
Producer name and physical home address
Your legal name or business name plus your physical address. PO boxes are not allowed because regulators must be able to locate you for recalls.
03
Net weight or volume
In US (oz/lb) and metric (g) units.
04
Ingredient list
All ingredients in descending order by weight, including sub-ingredients in parentheses.
05
Allergen statement
Major allergens (milk, egg, peanuts, tree nuts, fish, shellfish, soy, wheat, sesame).
06
Required home-kitchen disclaimer
Must appear in at least 10-point type on every product label.
07
Nutrition facts (if making claims)
Required only if you make a health or nutrient claim such as "low fat" or "high fiber".
Required disclaimer (copy verbatim)
Made in a home kitchen not inspected by the Vermont Department of Health.
  • The disclaimer must be at least 10-point type and printed on every package.
  • You must use your physical street address; a PO box does not satisfy the address requirement.
  • Labels do not need pre-approval, but the Department of Health may review them on inspection.
Sales cap

How much can you earn under Vermont cottage law?

Vermont's Cottage Food Operator exemption caps annual gross sales at $30,000. Operators may also use the separate license-exempt food processor exemption for up to $10,000 in additional processed-food sales. Cross either threshold and you need a Home Bakery license ($100 fee plus inspection) or a full Food Manufacturing license. Track sales carefully because the Department of Health can audit and may pull the exemption if you exceed the cap.

Training

Food safety training in Vermont

Cottage Food Operators must complete the Vermont Department of Health's free online training titled License Exempt Food Processors and Cottage Food Operators Online Training. The training covers the Manufactured Food Emergency Rule, basic food safety, sanitation, and labeling. There is no exam, but completion is required before you file your annual exemption form.

Registration

Registration, permits, and inspections in Vermont

There is no permit fee, but each Cottage Food Operator must file an annual exemption form with the Vermont Department of Health by January 15. New operators register before they start selling and then renew each year. The first cycle under Act 42 ran October 2025 through January 15, 2026; after that, the deadline is January 15 every year. The form is filed online with the Food and Lodging Program.

Step-by-step

How to start a cottage bakery in Vermont.

  1. 01
    Confirm your products fit the exemption
    Stick to non-TCS shelf-stable foods. Cheesecake, quiche, cream-filled pastries, and anything that needs refrigeration are excluded.
    Vermont Department of Health: Home-Based Food Licenses and Exemptions →
  2. 02
    Complete the free state online training
    Take the Department of Health's free License Exempt Food Processors and Cottage Food Operators Online Training. Save your completion record.
  3. 03
    File your annual exemption form by January 15
    Submit the Cottage Food Operator exemption filing through the Food and Lodging Program. Renew every year by January 15.
    Vermont Food and Lodging Program →
  4. 04
    Build a compliant label template
    Include the home-kitchen disclaimer in at least 10-point type, the producer name, physical home address, ingredients, allergens, and net weight.
  5. 05
    Set up your storefront
    Cakery gives you a free bakery page at cakerybakeries.com/your-bakery. Add menu, pricing, lead times, and your Vermont service area.
    Create a free Cakery page →
  6. 06
    Track sales toward the $30,000 cap
    Keep clean records. If you approach the cap, plan whether to scale back, move to a Home Bakery license, or transition into a commercial kitchen.
Worth knowing

A few things Vermont bakers should know.

  • Act 42 took effect July 1, 2025 and is the law you should reference. Older guides describing a $10,000 manufacturer exemption or a $125-per-week home bakery rule are out of date.
  • Cottage Food Operator sales must stay direct to the consumer. Selling through a store or restaurant pushes you into commercial licensing.
  • You can stack the Cottage Food Operator exemption ($30,000) with the small food processor exemption ($10,000) for certain processed foods.
  • Vermont sales tax exempts most groceries. Verify whether what you sell (such as candy or prepared individual servings) is taxable and register with the Vermont Department of Taxes if needed.
  • The home-kitchen disclaimer must be in at least 10-point type, and your physical home address (not a PO box) must appear on every label.
Resources

Bookmark these for Vermont baking.

Official agency resources

Vermont Department of Health: Home-Based Food Licenses and Exemptions
Authoritative state hub for the Cottage Food Operator exemption and Home Bakery license.
→
Vermont Food and Lodging Program
Top-level program page for all home-based food filings and inspections.
→
Vermont Agency of Agriculture, Food & Markets
Reference for farm-direct sales, dairy, and other adjacent food categories.
→
Vermont Department of Taxes: Sales and Use Tax
Register and collect sales tax if your products are taxable.
→

Statute and rules text

Vermont Statutes Title 18 Chapter 85 (Food and Lodging)
→
H.401 / Act 42 (2025): cottage food law
→
H.401 as passed by the House (PDF)
→

Helpful resources for bakers

Forrager: Vermont guide
Plain-English Vermont cottage food guide with Act 42 updates.
→
Institute for Justice: Cottage Food Issues
National tracker for cottage food law reforms; useful context for Vermont's recent overhaul.
→
Rural Vermont: 2025 End-of-Session Recap
Local advocacy group's writeup of how Act 42 came together.
→
Cottage Food Law Factsheet (July 2025)
Plain-language factsheet summarizing Act 42 changes.
→
Vermont Home Bakers (Facebook group)
Active community of Vermont home bakers sharing tips on filings and markets.
→
Recent changes

Recent and upcoming changes in Vermont.

  • July 1, 2025Act 42 took effect, replacing the old $10,000 license-exempt food processor cap and the $125-per-week home bakery rule with a single Cottage Food Operator exemption capped at $30,000 a year. Annual training and a January 15 exemption filing are required.
FAQ

Vermont cottage food FAQ.

Do I need a license to bake from home in Vermont?
Not under the Cottage Food Operator exemption. You file a free annual exemption form by January 15, complete the free Department of Health online training, and follow labeling rules. If you cross the $30,000 cap or want wholesale or restaurant sales, you need a Home Bakery license or higher.
How much can I earn under the Vermont Cottage Food Operator exemption?
Up to $30,000 a year in cottage food sales. You can also use Vermont's separate license-exempt food processor exemption for up to $10,000 of certain processed foods, in addition to the $30,000 cap.
Can I sell Vermont cottage food online?
Yes, direct to consumers in Vermont. You can sell through your own website or social media and ship by mail order within the state. Out-of-state shipping is not allowed under the exemption.
What disclaimer goes on the label?
Use "Made in a home kitchen not inspected by the Vermont Department of Health." in at least 10-point type. Your physical home address (not a PO box) must also appear on every package.
When do I have to file the exemption?
By January 15 each year. New operators register before their first sale. Cycle one under Act 42 ran October 2025 to January 15, 2026, and renewals follow the same January 15 deadline going forward.
Can I sell to a Vermont coffee shop or restaurant?
Not under the Cottage Food Operator exemption. Sales through a third-party reseller require a commercial license. You can sell direct to that coffee shop's customers from your own page or at a market.
What foods can I sell under Vermont's cottage food law?
Shelf-stable, non-TCS foods such as cookies, brownies, bars, breads, rolls, muffins, fruit pies, candies and fudge, high-acid jams and jellies, granola and snack mixes, roasted coffee beans and dry tea blends, and maple syrup and honey from your own production. Cakes and cupcakes are fine as long as they do not have cream or cream-cheese fillings.
What foods are prohibited under Vermont's cottage food law?
Anything that needs to be kept cold to stay safe does not qualify. That rules out cheesecake, quiche, custards, cream pies, cream-cheese frostings and cream-filled pastries, meat, poultry and seafood, low-acid canned foods without an approved process, and refrigerated beverages like fresh juices. The Vermont Department of Health specifically names cheesecake and quiche as not eligible.
Do I need food safety training to be a Vermont Cottage Food Operator?
Yes. You must complete the Vermont Department of Health's free online training titled License Exempt Food Processors and Cottage Food Operators Online Training before you file your annual exemption form. There is no exam, and the training covers basic food safety, sanitation, and labeling.
Will my home kitchen be inspected in Vermont?
No. Inspection is not required for exempt Cottage Food Operators, which is why your label must state the food was made in a home kitchen not inspected by the Vermont Department of Health. If you move up to a Home Bakery license, that route does include an inspection.
Can I ship Vermont cottage foods out of state?
No. Out-of-state shipping is not allowed under the Cottage Food Operator exemption and is treated as interstate commerce. You can ship within Vermont by USPS, UPS, FedEx, or any common carrier. Shipping across state lines requires a commercial license.
Can I sell Vermont cottage food at farmers markets?
Yes. Farmers markets, fairs, festivals, and pop-ups are allowed statewide, along with pickup at your home. Many markets ask for a copy of your exemption filing.
Do I have to collect sales tax on Vermont cottage foods?
Vermont exempts most groceries from sales tax, but some items such as candy or prepared individual servings may be taxable. Verify whether what you sell is taxable and register with the Vermont Department of Taxes if needed.
Can I sell cheesecake as a Vermont Cottage Food Operator?
No. Cheesecake is explicitly called out by the Vermont Department of Health as not eligible because it needs refrigeration. The exemption only covers shelf-stable, non-TCS foods.
Can I sell jams and maple syrup under Vermont's cottage food law?
Yes. High-acid jams, jellies, fruit butters, and preserves are allowed, as are maple syrup and honey from your own production. These are shelf-stable, non-TCS foods that fit the Cottage Food Operator exemption.
What has to be on a Vermont cottage food label?
The product's common name, your name and physical home address (not a PO box), the net weight or volume, an ingredient list in descending order by weight, an allergen statement, and the required home-kitchen disclaimer in at least 10-point type. Nutrition facts are only needed if you make a health or nutrient claim.
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Last verified May 2, 2026. This page is a plain-English summary of Vermont 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 Vermont agency listed in the official resources above before you sell, ship, or label a product.