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: 2026-06-11
No license or permit is required, and cottage food operations are exempt from establishment licensing and routine inspection. As of September 1, 2025, you must register online with DSHS (no fee listed) if you sell refrigerated TCS foods or resell cottage foods as a vendor; shelf-stable producers can register voluntarily to get an ID number to use on labels instead of a home address.
Yes: anyone operating a cottage food operation must complete an accredited basic food safety (food handler) course.
Texas flipped its rules in 2025: you may now make any food except a short prohibited list. That covers baked goods, jams and jellies, candy, dried herbs, granola, pickled and fermented foods (batch numbers required), and now even refrigerated TCS foods if you register with DSHS, date-label them, and keep them cold.
Still banned: meat and poultry products, seafood, ice and frozen treats (ice cream, popsicles, shaved ice), low-acid canned goods, raw milk products, and anything containing CBD or THC.
Direct to consumers anywhere in Texas: from home, farmers markets, farm stands, fairs, festivals, and community events. Since September 2025 you can also sell wholesale to registered cottage food vendors who resell your shelf-stable products. Online ordering is allowed, but you or a household member must personally deliver; shipping by mail or carrier is not permitted.
Annual sales cap: $150,000 per year (raised from $50,000 by SB 541, with annual inflation adjustment).
Labels must include the operation's name, physical address (or DSHS registration ID instead), the product's common name, allergen disclosure, and the statement: THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. Pickled and fermented foods add a batch number; TCS foods add the date made and safe handling instructions.
Most cottage foods are grocery items not subject to Texas sales tax, and bakery items are specifically exempt when sold without plates or utensils. Candy is taxable, though, so candy makers need a sales tax permit and must collect tax.
State law preempts local regulation: local health departments may not regulate cottage food production or require any license, permit, or fee.
No routine inspection, but DSHS can act on complaints and issue emergency orders, and operating outside the cottage food limits makes you an unlicensed food establishment.
Selling non-food crafts too? See the Texas craft fair permit and sales tax guide.
Yes, under Texas Cottage Food Law (Health and Safety Code Ch. 437, amended by SB 541 effective September 1, 2025). No license or permit is required, and cottage food operations are exempt from establishment licensing and routine inspection. As of September 1, 2025, you must register online with DSHS (no fee listed) if you sell refrigerated TCS foods or resell cottage foods as a vendor; shelf-stable producers can register voluntarily to get an ID number to use on labels instead of a home address.
Texas flipped its rules in 2025: you may now make any food except a short prohibited list. That covers baked goods, jams and jellies, candy, dried herbs, granola, pickled and fermented foods (batch numbers required), and now even refrigerated TCS foods if you register with DSHS, date-label them, and keep them cold. Still banned: meat and poultry products, seafood, ice and frozen treats (ice cream, popsicles, shaved ice), low-acid canned goods, raw milk products, and anything containing CBD or THC.
Yes: $150,000 per year (raised from $50,000 by SB 541, with annual inflation adjustment).
Direct to consumers anywhere in Texas: from home, farmers markets, farm stands, fairs, festivals, and community events. Since September 2025 you can also sell wholesale to registered cottage food vendors who resell your shelf-stable products. Online ordering is allowed, but you or a household member must personally deliver; shipping by mail or carrier is not permitted.
Labels must include the operation's name, physical address (or DSHS registration ID instead), the product's common name, allergen disclosure, and the statement: THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. Pickled and fermented foods add a batch number; TCS foods add the date made and safe handling instructions.
Most cottage foods are grocery items not subject to Texas sales tax, and bakery items are specifically exempt when sold without plates or utensils. Candy is taxable, though, so candy makers need a sales tax permit and must collect tax.
Browse upcoming craft fairs and markets in Texas with booth fees and application deadlines, and use the booth ROI calculator to plan a profitable season.
Last verified: 2026-06-11. Spotted something out of date? Let us know.