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
Yes, two tiers, both $50 per year expiring March 31: Home-Based Processor registration (Form DFS-250) for shelf-stable foods, and Home-Based Microprocessor certification (Form DFS-251) for canned and acidified foods, which additionally requires proof of water and sewage, the UK food processing workshop, an approved scheduled process for every recipe, and pre-market label review. Microprocessors must be Kentucky farmers (defined to include any resident who grew the primary ingredients).
Processor tier: none. Microprocessor tier: the UK Cooperative Extension Homebased Microprocessor workshop ($50), repeated every 3 years or when products change, plus processing authority approval of every recipe ($5 per recipe).
Processor tier: breads, cakes, cookies, fruit and pecan pies, jams, jellies, fruit butter, sorghum and maple syrup, dried herbs, nuts, candy, granola, popcorn, whole and dried produce, and mixed greens, with no requirement to grow ingredients. Microprocessor tier: acid and acidified foods and low-acid canned foods: salsa, pickles, canned tomatoes, barbecue sauce, pepper jellies, low-sugar jams, and pressure-canned vegetables.
Both tiers: creme-filled pies, custards, meringue-topped pies, cheesecake, raw seed sprouts, garlic-in-oil, pureed baby foods, vacuum packaging outside mason-type jars, and hemp-derived cannabinoid products. Processors cannot make the canned/acidified foods reserved for microprocessors.
Processor tier: direct to consumers within Kentucky at flea markets, farmers markets, festivals, county fairs, craft fairs, charity events, roadside stands, and from home, with orders and payments taken online or by phone, but every item handed over in person; CHFS prohibits shipping, and sales through grocery stores or restaurants are not allowed. Microprocessor tier is narrower: only farmers markets, certified roadside stands, or the processor's own farm, sold by the certificate holder personally.
Annual sales cap: $60,000 gross income annually (both tiers).
Labels need: the food's common name, the operation's name and full street address, ingredients by weight, net weight, date processed, and in at least 10-point type: 'This product is home-produced and processed,' plus federal allergen labeling. Microprocessors submit draft labels for state approval before marketing and post their certification at the point of sale.
Kentucky exempts food and food ingredients from its 6 percent sales tax, so breads, jams, and canned goods are not taxed, but candy, prepared food, and soft drinks are excluded from the exemption, so candy sellers should register with the Department of Revenue and collect tax.
Registration is state-level with no county cottage permit; local health departments field complaints, markets set their own vendor rules, and home businesses should check local zoning and business license requirements.
Misbranded or unlabeled products subject the processor to sampling and inspection, the cabinet can halt production for imminent hazards and revoke certification, and general penalties run $100 to $500 per violation with each day counting separately.
Selling non-food crafts too? See the Kentucky craft fair permit and sales tax guide.
Yes, under Kentucky Home-Based Processing Law (KRS 217.136 to 217.139, 902 KAR 45:090). Yes, two tiers, both $50 per year expiring March 31: Home-Based Processor registration (Form DFS-250) for shelf-stable foods, and Home-Based Microprocessor certification (Form DFS-251) for canned and acidified foods, which additionally requires proof of water and sewage, the UK food processing workshop, an approved scheduled process for every recipe, and pre-market label review. Microprocessors must be Kentucky farmers (defined to include any resident who grew the primary ingredients).
Processor tier: breads, cakes, cookies, fruit and pecan pies, jams, jellies, fruit butter, sorghum and maple syrup, dried herbs, nuts, candy, granola, popcorn, whole and dried produce, and mixed greens, with no requirement to grow ingredients. Microprocessor tier: acid and acidified foods and low-acid canned foods: salsa, pickles, canned tomatoes, barbecue sauce, pepper jellies, low-sugar jams, and pressure-canned vegetables. Both tiers: creme-filled pies, custards, meringue-topped pies, cheesecake, raw seed sprouts, garlic-in-oil, pureed baby foods, vacuum packaging outside mason-type jars, and hemp-derived cannabinoid products. Processors cannot make the canned/acidified foods reserved for microprocessors.
Yes: $60,000 gross income annually (both tiers).
Processor tier: direct to consumers within Kentucky at flea markets, farmers markets, festivals, county fairs, craft fairs, charity events, roadside stands, and from home, with orders and payments taken online or by phone, but every item handed over in person; CHFS prohibits shipping, and sales through grocery stores or restaurants are not allowed. Microprocessor tier is narrower: only farmers markets, certified roadside stands, or the processor's own farm, sold by the certificate holder personally.
Labels need: the food's common name, the operation's name and full street address, ingredients by weight, net weight, date processed, and in at least 10-point type: 'This product is home-produced and processed,' plus federal allergen labeling. Microprocessors submit draft labels for state approval before marketing and post their certification at the point of sale.
Kentucky exempts food and food ingredients from its 6 percent sales tax, so breads, jams, and canned goods are not taxed, but candy, prepared food, and soft drinks are excluded from the exemption, so candy sellers should register with the Department of Revenue and collect tax.
Browse upcoming craft fairs and markets in Kentucky 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.