Texas Cottage Food Law: Can You Sell Homemade Baked Goods in Texas? (2026)

Want to sell cookies, cakes, bread, or other baked goods from your home kitchen in Texas? You might be able to — without any permits at all. Texas has one of the more permissive cottage food laws in the country, allowing home-based food producers to sell certain items directly to consumers without a commercial kitchen, health inspection, or food dealer's permit.

But there are rules. This guide explains what the Texas Cottage Food Law actually allows, what you can and can't sell, the sales limits, labeling requirements, and what happens when you outgrow cottage food and need to go commercial.

What Is the Texas Cottage Food Law?

The Texas Cottage Food Law (Texas Health and Safety Code, Chapter 437) allows individuals to produce certain foods in their home kitchen and sell them directly to consumers without a food establishment permit. The law was originally passed in 2011 and has been expanded several times since then, most recently in 2019.

The idea is simple: if you're making low-risk foods in small quantities and selling directly to customers, you don't need to go through the full commercial permitting process.

What Foods Can You Sell Under Cottage Food?

The law covers foods that are considered low risk for foodborne illness. These are generally items that don't require refrigeration (they're shelf-stable at room temperature).

Baked goods — cookies, brownies, cakes, pastries, breads, muffins, scones, pies (fruit pies without custard or cream), tortillas, and similar items. This is the biggest category and the one most home bakers use.

Candy and confections — fudge, pralines, toffee, brittles, chocolate-covered items (as long as the finished product is shelf-stable).

Coated and uncoated nuts — roasted nuts, candied nuts, spiced nuts.

Dried fruits and vegetables — dehydrated produce, dried herbs.

Popcorn and snack mixes — flavored popcorn, trail mix, granola, cereal-based snack mixes.

Jams, jellies, and preserves — fruit-based preserves that have been properly canned using tested recipes.

Honey — raw or processed honey from your own hives.

Fermented vegetables — pickles, sauerkraut, kimchi (added in a 2019 expansion).

Frozen fruit — uncut, unprocessed frozen fruit.

Dry mixes — soup mixes, spice blends, baking mixes, dry rubs.

What You Cannot Sell Under Cottage Food

Foods that require refrigeration to stay safe are generally not allowed. This includes:

Anything with cream, custard, or cream cheese that isn't shelf-stable — cream pies, cheesecake, cream-filled pastries, and similar items.

Meat, poultry, and fish products — you cannot sell any animal proteins under cottage food.

Dairy products — no homemade cheese, butter, yogurt, or ice cream.

Fresh salsa and guacamole — these require refrigeration and are not covered.

Meals and prepared foods — you can't sell lunch plates, tamales (if they contain meat), sandwiches, or other ready-to-eat meals.

Beverages — no kombucha, juices, smoothies, or other drinks.

Canned low-acid foods — home-canned vegetables, soups, stocks, or anything that requires pressure canning is not covered. The risk of botulism makes these too dangerous for unregulated production.

Sales Limits and Rules

The Texas Cottage Food Law comes with specific rules about how and where you can sell:

Direct to consumer only. You must sell directly to the end consumer. You cannot sell wholesale to restaurants, grocery stores, or other retailers.

Sales locations. You can sell from your home, at farmers markets, at community events, or through online orders (with in-person pickup or delivery). You cannot sell through a third-party delivery service.

No sales cap. Texas does not impose a dollar limit on cottage food sales. Some states cap annual sales at $25,000 or $50,000, but Texas has no limit. You can sell as much as you want.

Texas only. You can only sell within the state of Texas. No shipping across state lines — that would bring federal FDA regulations into play.

Labeling requirements. Every product must have a label with the following information: the name of the product, the name and address of the cottage food producer, a statement that the product was made in a home kitchen that is not inspected by a regulatory agency, and an ingredient list (including common allergens like nuts, wheat, eggs, dairy, and soy). For items containing common allergens, you must clearly list them. Use the language: "Made in a home kitchen that is not inspected by the Department of State Health Services or a local health department."

Do You Need Any Permits or Certifications?

Under cottage food, you do not need:

• A food establishment permit or food dealer's permit
• A commercial kitchen or health inspection
• A sales tax permit (most cottage food items are not taxable under Texas law — baked goods and most food items sold for home consumption are tax-exempt)

However, you may still want or need:

A Food Handler card — Not legally required for cottage food producers, but highly recommended. It costs $7-$15 and takes about 2 hours online. It demonstrates you understand basic food safety, and customers may ask about it.

A Texas LLC — Not required, but strongly recommended once your sales become regular. It separates your personal assets from business liabilities. $300 to file.

Homeowner's insurance review — Your standard homeowners or renters insurance probably doesn't cover a home business. Talk to your insurance provider about adding a home business rider.

Local zoning — Some HOAs or local zoning rules may restrict commercial activity from a residence. Check before you start.

How to Start Selling: Practical Steps

Step 1: Decide what you'll make. Pick items that fall within the allowed categories, that you can produce consistently, and that have a reasonable shelf life.

Step 2: Get your labeling right. Print labels that include every required element: product name, your name and address, the "not inspected" disclaimer, and a complete ingredient list with allergens.

Step 3: Consider getting a Food Handler card. It's cheap, fast, and builds trust with customers.

Step 4: Start selling. Farmers markets are the easiest entry point — most Houston-area markets welcome cottage food producers. Some require proof that you're operating under the cottage food law.

Step 5: Track your income and expenses. Even without a formal business structure, you'll need to report income on your taxes.

When You Outgrow Cottage Food

If your home baking business takes off, you may reach a point where cottage food limitations hold you back. Common triggers for going commercial:

You want to sell to stores or restaurants. Cottage food is direct-to-consumer only. Wholesale requires a food establishment permit.

You want to sell products that need refrigeration. Cream-filled pastries, cheesecakes, and similar items require a commercial kitchen and health permit.

You want to ship across state lines. That requires FDA compliance, which is beyond cottage food scope.

You want to hire employees. While not strictly prohibited under cottage food, once you have employees, you'll need an EIN, TWC registration, and potentially a food handler certification program for staff.

When you're ready to transition to a commercial operation, here's what changes:

For a bakery in Houston city limits, you'll need: a Texas LLC ($300), an EIN (free), a sales tax permit (free), a Certificate of Occupancy ($75-$200), a City of Houston Food Dealer's Permit ($258-$773), food handler certifications for all staff ($7-$15 each), a Certified Food Manager ($100-$150), and potentially a fire department permit ($50-$250).

You can either lease commercial kitchen space, use a shared commercial kitchen, or build out a permitted kitchen at your home (which requires meeting commercial kitchen standards and passing health inspection).

Houston-Area Farmers Markets for Cottage Food Sellers

Farmers markets are the primary sales channel for most cottage food producers. Houston has a strong farmers market scene. Research markets in your area, and contact the market organizer to ask about vendor requirements and fees. Most markets charge a booth fee per market day or a seasonal fee.

Be prepared to show your labeling and explain that you're operating under the Texas Cottage Food Law. Some markets have their own additional requirements.

Frequently Asked Questions

Do I need a permit to sell cookies from my home in Texas? No. Cookies are a baked good, which is one of the primary categories covered by the Texas Cottage Food Law. As long as you sell directly to consumers and label your products correctly, no permit is needed.

Can I sell cakes with cream cheese frosting? This is a gray area. The key question is whether the finished product requires refrigeration for safety. A shelf-stable cream cheese frosting (high sugar content) may be acceptable, but a perishable cream cheese filling likely isn't. When in doubt, stick to buttercream, fondant, or other shelf-stable frostings.

Can I take custom orders online? Yes. You can take orders online, by phone, or in person. The product must be delivered directly to the consumer (in person or by your own delivery), not through a third-party delivery service.

Is there an annual sales limit? No. Texas does not cap cottage food sales.

Do I need to collect sales tax? Most cottage food items (baked goods, jams, etc.) sold for home consumption are not subject to Texas sales tax. However, if you sell non-food items alongside your food products, those may be taxable.

Can I sell at pop-up events and festivals? Yes, as long as you're selling directly to consumers. Some events may have their own vendor requirements. For events in Houston city limits, check whether a Temporary Food Dealer's Permit is required — cottage food producers are generally exempt, but the event organizer may have specific rules.

What to Do Next

Not sure whether cottage food covers your situation, or ready to go commercial? Use our free permit navigator to find out exactly what you need based on your business type and location in the Houston area.