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
No license, registration, or application, and no routine ODA inspection, if you stay within the exemption: approved shelf stable foods, under the annual sales cap, a food handler card for every preparer, compliant labels, and sales records (3-year retention, available within 5 business days). An optional $25 per year Unique Identification Number lets you put a UIN on labels instead of your home address. If your product or volume falls outside the exemption, ODA's licensed Domestic Kitchen path lets you keep producing at home with inspection: Domestic Kitchen Bakery fees start at $179 per year and the Processor license is $223 (FY 2026-2027 schedule).
Yes: every person involved in preparing cottage food must complete an approved food handler training program and hold a standard Oregon food handler card.
Shelf stable (non-TCS) foods on the statutory list: baked goods; confectionery including freeze-dried confections; jams, jellies, and fruit butters made only with fruit naturally below pH 4.60; honey products; syrups; coffee beans; dried tea, spice, or seasoning blends from commercial ingredients; nut mixes; popcorn; powdered drink mixes from commercial ingredients; and repackaged commercially made freeze-dried or dehydrated foods.
Anything requiring refrigeration (cream pies, cheesecake, cream or custard fillings, cream cheese icings, focaccia with vegetables or cheese, candied apples, chocolate covered strawberries), anything containing meat or fish, pickles and pepper jellies (vegetable pH too high), home-bottled brewed tea, freeze-dried foods you make yourself other than confections, and anything containing cannabis.
Direct to the end consumer in any manner: from home, farmers markets, farm stands, fairs, online, and shipped through the mail. Wholesale to retail stores like grocers is also allowed if the product is packaged and labeled, the retailer agrees in writing to store and display it separately with homemade signage, and you keep the agreement on record. Prohibited: sales to restaurants, caterers, schools, day cares, hospitals, and other institutions, and licensed processors may not use cottage foods as ingredients. Oregon law does not address out-of-state shipping; check the destination state's rules.
Annual sales cap: $52,700 in annual gross sales for 2026; the statutory base is $50,000, adjusted each year for inflation, so the figure changes annually. Keep sales records proving you stay under it. The separate Farm Direct exemption has its own $50,000 limit that stacks for qualifying farm products..
The principal display panel must carry this exact statement: 'This product is homemade, is not prepared in an inspected food establishment, and must be stored and displayed separately if merchandised by a retailer.' Labels also need: the name of the food, ingredients and sub-ingredients in descending order by weight, business name, business phone number, an address (full street address or an ODA UIN, never a PO box), net weight or volume in both US and metric units, allergen warnings for the nine major allergens, and, if pets live in the home, a statement naming the species. Minimum font size is 1/16 inch. Unpackaged direct sales (like a wedding cake) put the information on a receipt, and single items at a market stand need a homemade placard.
Oregon has no state or local general sales tax, so no sales tax is collected on cottage food or market sales.
The exemption only covers ODA licensing and inspection. Check with your city and county for zoning, home occupation permits, and business licenses.
ODA can revoke the exemption and force licensing if you operate outside its parameters, refuse product testing, fail to keep or produce records, or block complaint-driven inspections. Operating without a required license is a Class B misdemeanor for a first offense and Class A for repeats, with civil penalties also available.
Selling non-food crafts too? See the Oregon craft fair permit and sales tax guide.
Yes, under Cottage Food Exemption, ORS 616.723, substantially expanded by SB 643 (2023), with rules at OAR 603-025-0311 to 603-025-0335; the old baked-goods-only exemption with its $20,000 cap no longer exists. No license, registration, or application, and no routine ODA inspection, if you stay within the exemption: approved shelf stable foods, under the annual sales cap, a food handler card for every preparer, compliant labels, and sales records (3-year retention, available within 5 business days). An optional $25 per year Unique Identification Number lets you put a UIN on labels instead of your home address. If your product or volume falls outside the exemption, ODA's licensed Domestic Kitchen path lets you keep producing at home with inspection: Domestic Kitchen Bakery fees start at $179 per year and the Processor license is $223 (FY 2026-2027 schedule).
Shelf stable (non-TCS) foods on the statutory list: baked goods; confectionery including freeze-dried confections; jams, jellies, and fruit butters made only with fruit naturally below pH 4.60; honey products; syrups; coffee beans; dried tea, spice, or seasoning blends from commercial ingredients; nut mixes; popcorn; powdered drink mixes from commercial ingredients; and repackaged commercially made freeze-dried or dehydrated foods. Anything requiring refrigeration (cream pies, cheesecake, cream or custard fillings, cream cheese icings, focaccia with vegetables or cheese, candied apples, chocolate covered strawberries), anything containing meat or fish, pickles and pepper jellies (vegetable pH too high), home-bottled brewed tea, freeze-dried foods you make yourself other than confections, and anything containing cannabis.
Yes: $52,700 in annual gross sales for 2026; the statutory base is $50,000, adjusted each year for inflation, so the figure changes annually. Keep sales records proving you stay under it. The separate Farm Direct exemption has its own $50,000 limit that stacks for qualifying farm products..
Direct to the end consumer in any manner: from home, farmers markets, farm stands, fairs, online, and shipped through the mail. Wholesale to retail stores like grocers is also allowed if the product is packaged and labeled, the retailer agrees in writing to store and display it separately with homemade signage, and you keep the agreement on record. Prohibited: sales to restaurants, caterers, schools, day cares, hospitals, and other institutions, and licensed processors may not use cottage foods as ingredients. Oregon law does not address out-of-state shipping; check the destination state's rules.
The principal display panel must carry this exact statement: 'This product is homemade, is not prepared in an inspected food establishment, and must be stored and displayed separately if merchandised by a retailer.' Labels also need: the name of the food, ingredients and sub-ingredients in descending order by weight, business name, business phone number, an address (full street address or an ODA UIN, never a PO box), net weight or volume in both US and metric units, allergen warnings for the nine major allergens, and, if pets live in the home, a statement naming the species. Minimum font size is 1/16 inch. Unpackaged direct sales (like a wedding cake) put the information on a receipt, and single items at a market stand need a homemade placard.
Oregon has no state or local general sales tax, so no sales tax is collected on cottage food or market sales.
Browse upcoming craft fairs and markets in Oregon 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.