This is general information, not legal or tax advice. Permit and tax rules change, and your situation may differ. Always confirm current requirements with the official state agency linked in this guide, and consult a licensed attorney or tax professional for advice about your specific business.Last verified against official state sources: 2026-06-12
Two paths. Cottage food: no license, permit, inspection, or fee of any kind for shelf-stable foods sold direct. Home Food Processing Establishment (HFPE): a $50 annual DIAL license (apply 30 days ahead, list every food item) unlocks TCS foods and resale, with periodic risk-based inspections, in person or by video.
Cottage food: none. HFPE: the person in charge must complete a DIAL-approved food safety course before licensing.
Cottage food: any non-TCS food made at home, including breads, cookies, shelf-stable jams, candy, granola, and dried goods, plus home-canned pickles, vegetables, and fruits if each batch tests at pH 4.60 or below (documented, canning date on the label). HFPE: most homemade foods including refrigerated and frozen TCS items, perishable-filled baked goods, pH-controlled sauces with DIAL-approved recipes, fermented foods with a validated HACCP plan, and limited meat/poultry under federal exemptions.
Cottage food path: anything needing hot or cold holding, milk products, and meat or poultry. HFPE path: raw milk, unpasteurized juice, fish and shellfish, game animals, alcoholic beverages, hemp products, plus prohibited processes: low-acid canning, shelf-stable acidification (salsa, hot sauce), curing (jerky, bacon), and preservation smoking.
Cottage food: direct producer-to-consumer only, but unusually flexible delivery: in person, by your agent, or by MAIL, so farmers markets, craft fairs, and shipped online orders within Iowa all work; no wholesale or resale. HFPE: direct sales plus resale through other businesses, with TCS foods shipped at 41F or below.
Annual sales cap: Cottage food: none. HFPE: under $50,000 gross annual homemade food sales, with documentation shown on request.
Cottage food labels: your name plus an address, phone, or email, the food's common name, ingredients by predominance, allergens named, the canning date for home-canned items, and the exact statement 'This product was produced at a residential property that is exempt from state licensing and inspection.' HFPE labels use 'This product was produced at a home food processing establishment.' plus net quantity and expiration dates for refrigerated items.
Iowa exempts groceries, so breads, jams, and baked goods are generally untaxed, but candy, soft drinks, and prepared food (heated or sold with utensils) are taxable, so homemade candy and ready-to-eat fair food typically need tax collected.
DIAL can contract HFPE licensing to counties (Scott County, for example), so applications may run through a county health department. Cottage food needs no food license anywhere in Iowa, though zoning and event organizer rules still apply.
Chapter 137D violations carry $100 civil penalties per violation per day, plus possible injunction and license revocation; selling outside the cottage exemption without a license is unlicensed operation.
Selling non-food crafts too? See the Iowa craft fair permit and sales tax guide.
Yes, under Iowa Cottage Food law (Iowa Code 137F.20) and Home Food Processing Establishment license (Ch. 137D), rewritten by HF 2431 effective July 2022. Two paths. Cottage food: no license, permit, inspection, or fee of any kind for shelf-stable foods sold direct. Home Food Processing Establishment (HFPE): a $50 annual DIAL license (apply 30 days ahead, list every food item) unlocks TCS foods and resale, with periodic risk-based inspections, in person or by video.
Cottage food: any non-TCS food made at home, including breads, cookies, shelf-stable jams, candy, granola, and dried goods, plus home-canned pickles, vegetables, and fruits if each batch tests at pH 4.60 or below (documented, canning date on the label). HFPE: most homemade foods including refrigerated and frozen TCS items, perishable-filled baked goods, pH-controlled sauces with DIAL-approved recipes, fermented foods with a validated HACCP plan, and limited meat/poultry under federal exemptions. Cottage food path: anything needing hot or cold holding, milk products, and meat or poultry. HFPE path: raw milk, unpasteurized juice, fish and shellfish, game animals, alcoholic beverages, hemp products, plus prohibited processes: low-acid canning, shelf-stable acidification (salsa, hot sauce), curing (jerky, bacon), and preservation smoking.
Yes: Cottage food: none. HFPE: under $50,000 gross annual homemade food sales, with documentation shown on request.
Cottage food: direct producer-to-consumer only, but unusually flexible delivery: in person, by your agent, or by MAIL, so farmers markets, craft fairs, and shipped online orders within Iowa all work; no wholesale or resale. HFPE: direct sales plus resale through other businesses, with TCS foods shipped at 41F or below.
Cottage food labels: your name plus an address, phone, or email, the food's common name, ingredients by predominance, allergens named, the canning date for home-canned items, and the exact statement 'This product was produced at a residential property that is exempt from state licensing and inspection.' HFPE labels use 'This product was produced at a home food processing establishment.' plus net quantity and expiration dates for refrigerated items.
Iowa exempts groceries, so breads, jams, and baked goods are generally untaxed, but candy, soft drinks, and prepared food (heated or sold with utensils) are taxable, so homemade candy and ready-to-eat fair food typically need tax collected.
Browse upcoming craft fairs and markets in Iowa with booth fees and application deadlines, and use the booth ROI calculator to plan a profitable season.
Last verified: 2026-06-12. Spotted something out of date? Let us know.