Texas Cottage Food Law 2025: What Home Bakers & Food Producers Must Know

At a Glance

Effective date: September 1 2025 (for Senate Bill 541)
Annual gross sales cap: $150,000 (indexed for inflation)
What you can sell: Almost any homemade food, except meat/poultry, seafood, ice/ice-products, low-acid canned goods, raw milk, CBD/THC products
Permit/licensing: None required at local level; local health departments may not require a fee, permit or zoning restriction for home-based operation
Wholesale & delivery: Non-TCS foods may now be sold through a “cottage food vendor” or retail; TCS (time/temperature control) foods may only be sold direct to consumer with extra label & registration requirements
Training: Accredited food handler training required for the operator (and employees if unsupervised)

Overview of the Texas Cottage Food Law

The Texas cottage food law allows individuals to prepare and sell certain low-risk foods from a home kitchen under defined rules. Historically Texas has been among the most liberal states in the U.S. for home-based food entrepreneurs. The law’s latest expansion via Senate Bill 541 (SB 541) marks a major milestone in 2025.

Under the new law, a “cottage food production operation” (CFPO) can operate from their home residence without needing a food-manufacturing license when meeting the conditions.

Key Changes Coming in 2025

Sales cap raised: From $50,000 to $150,000 annual gross sales for cottage foods.
“Allowed foods” model flipped: Rather than listing what you can sell, the law now lists what you cannot sell — meaning much broader food-categories allowed.
Wholesale & vendor sales opened: Non-time/temperature-controlled (non-TCS) foods may now be sold via third-party cottage food vendors at farmers markets, food service establishments, retail stores.
No local permit or inspection: Local governments cannot require fees, permits or inspections solely because you are a cottage food operator.
Expanded food types: Businesses may now sell refrigerated or TCS foods (e.g., cream-filled desserts, cheesecake, banana pudding) direct to consumers — but additional labeling + registration apply.
Address optional on labels: Operators may register to receive a unique ID and use that instead of their home address on packaging.

What Foods Are Allowed (and Not Allowed)

✅ Allowed Foods

As of September 1, 2025, you may sell any homemade food directly to consumers except those listed in the exclusions. Examples of newly allowed items include:

Cheesecakes, cream-filled pastries
Frozen fruit products, flavored syrups, vegetarian casseroles/pasta dishes (no meat)
Traditional non-TCS items like cookies, breads, jams, pickled vegetables, roasted coffee, hot mixes

❌ Not Allowed Foods

Meat or meat products, poultry or poultry products
Seafood, fish, shellfish or related products
Ice or ice products (ice cream, gelato, shaved ice, popsicles)
Low-acid canned goods
Products containing CBD or THC
Raw milk and raw milk products

Label & Packaging Requirements

Correct packaging and labeling is essential not only for compliance but for consumer trust and marketing. Below are Texas’s requirements for cottage food items under the new law.

General Labeling Rules

Operator’s full name and home address, or name and unique registration number issued by Texas Department of State Health Services (DSHS) (optional)
Common name of the product (e.g., “Strawberry Shortcake Cheesecake”)
List of major food allergens present (milk, eggs, wheat, soy, peanuts, tree nuts, fish or shellfish)
The statement: “THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”

Additional Rules for TCS Foods (Time/Temperature Control for Safety)

Require date of production on the label.
Include safe-handling statement in at least 12-point font: “SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption.”
Ensure product is stored and delivered at the required temperature to prevent bacterial growth.

Packaging Rules

Items must be packaged in a way that prevents contamination. Bulk items too large to be packaged (e.g., large wedding cakes, cupcake bouquets) may instead have the required label on the invoice or receipt.

Where and How You Can Sell

Under Texas’s expanded law, home-based producers now have many more channels to sell their cottage food products.

Direct-to-Consumer Sales

In-person at markets, your home, pop-ups
Online sales (websites, social media) if you, an employee or a household member personally deliver the food to a Texas resident and you have posted required labeling info online prior to sale.

Wholesale / Vendor Sales (Non-TCS items only)

Non-TCS foods may now be sold to a “cottage food vendor” who then sells them at a farmers market, farm stand, retail store or food service establishment. The vendor must register with DSHS and display the required disclosure sign.

Important Notes

Even though local permitting is restricted, you must still comply with zoning, HOA and event-vendor rules in your city/county (e.g., tent rules, signage rules).

Step-by-Step Guide: How to Launch Your Cottage Food Business in Texas

1. Complete Food Handler Training

Enroll in an accredited food handler safety course (online or in-person). Keep your certificate on file.

2. Decide What You Will Sell

Choose whether your product is non-TCS (simpler) or TCS (greater flexibility but added rules). Check the exclusions. Use lab or recipe testing if uncertain.

3. Package & Label Your Products

Include required info: your name/address (or registration number), product name, allergens, “produced in private residence” statement. For TCS: include date of production and safe-handling statement. Register for the unique ID if desired.

4. Select Sales Channels

In-person direct sales, online direct delivery, and for non-TCS items: wholesale through vendors. Set up a simple website or listing stating your labeling info before sale.

5. Track Your Sales & Stay Under the Cap

Monitor your gross annual sales to ensure you stay under the $150K threshold (indexed annually). If you exceed it, you must transition to a commercial kitchen and a food manufacturing license.

6. Maintain Quality & Safety

Even though routine inspections aren’t required, you are still liable for foodborne illness or bad products. Keep sanitary practices, clean equipment, and accurate records.

Common Mistakes & How to Avoid Them

Not verifying whether a product is TCS vs non-TCS — leads to mis-labeling or unsellable items.
Using your home address on the label when you could register for the unique ID (privacy risk).
Failing to include the “produced in a private residence…” statement — this is required for all items.
Overlooking delivery rules for online sales (must personally deliver, no shipping allowed under cottage food law).
Neglecting zoning or HOAs — while the law overrides health-department permit requirements, it does not override local zoning/business ordinances.
Not tracking gross sales — the cap is now higher but still a trigger for regulation change.