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 below the thresholds, but you are not paperwork free. Cottage food operators making only non-refrigerated products in their home kitchen with $30,000 or less in annual cottage food sales are exempt from licensing and fees (a separate exemption covers non-bakery food processors under $10,000). Exempt operators must complete a free online training and file an annual licensing exemption attestation with the Health Department through its online portal; check the portal for the current year's filing window. No fee and no routine inspection, but the food safety and labeling rules still apply. Above the thresholds or for refrigerated foods you need a license with an opening inspection: a Home Bakery license is $100 per year, and non-bakery manufacturing licenses start at $175.
Yes. Exempt operators must complete the Health Department's free online training for license-exempt food processors and cottage food operators before starting and annually after that, and attest to it in the annual exemption filing. No paid certificate is required.
Foods that do not require refrigeration or time and temperature control: non-hazardous baked goods, candy, jams and jellies, dry herbs, trail mix, granola, mixed nuts, flavored vinegar, popcorn, coffee beans, dry tea, and home-canned pickles, vegetables, or fruits with an equilibrium pH of 4.6 or lower made from National Center for Home Food Preservation approved recipes or recipes reviewed by a process authority. You can ask the Department for a written determination on products not listed.
Anything needing refrigeration or temperature control (the Health Department's examples: quiche, cheese danish, cheesecake; cream-filled and custard items fall in the same category), home-canned low-acid foods outside the approved limits, and Agency of Agriculture products such as meat, poultry, and dairy.
Direct to consumers: farmers markets, craft fairs, festivals, from home, and online. The key restriction: exempt food cannot be sold to restaurants or other licensed food establishments, so no wholesale to stores or restaurants without a license. Interstate shipping is governed by federal law and generally takes you outside cottage food protections.
Annual sales cap: $30,000 in gross annual cottage food sales for the exemption ($10,000 for the separate non-bakery processor exemption); these limits took effect July 1, 2025, replacing the old $125-per-week home baker rule. No cap once licensed..
All packaged exempt products need: the operation's name and address, product name, ingredients in descending order by weight, net weight or volume, federal allergen information (including sesame), and the statement 'Made in a home kitchen not inspected by the Vermont Department of Health' in at least 10-point type in a contrasting color. Nutrition Facts are only required if you make a nutrient or health claim.
Vermont's 6 percent sales tax does not apply to grocery-type food for home consumption, so most packaged cottage foods are not taxed. The 9 percent Meals Tax applies to food sold ready for immediate consumption: single-serving bakery items sold in quantities of fewer than three are taxable meals, but three or more at once are not, and whole pies, cakes, and bread loaves are not taxable. If you sell taxable meals at fairs, register for a Meals and Rooms Tax account.
The exemption is statewide, but towns can apply zoning and home business rules, and market organizers can require proof of your exemption filing or insurance. Homes on private wells should test annually for coliform bacteria and E. coli.
Violations of the food and lodging chapter carry fines up to $300 for a first offense and up to $500 for each later offense; the Health Commissioner can also issue corrective orders, assess civil penalties, and suspend or revoke licenses.
Selling non-food crafts too? See the Vermont craft fair permit and sales tax guide.
Yes, under Act 42 of 2025 (H.401), amending 18 V.S.A. chapter 85, implemented by the Health Department's Manufactured Food Rule (effective July 1, 2025; permanent rule in rulemaking, so details may shift slightly). No license below the thresholds, but you are not paperwork free. Cottage food operators making only non-refrigerated products in their home kitchen with $30,000 or less in annual cottage food sales are exempt from licensing and fees (a separate exemption covers non-bakery food processors under $10,000). Exempt operators must complete a free online training and file an annual licensing exemption attestation with the Health Department through its online portal; check the portal for the current year's filing window. No fee and no routine inspection, but the food safety and labeling rules still apply. Above the thresholds or for refrigerated foods you need a license with an opening inspection: a Home Bakery license is $100 per year, and non-bakery manufacturing licenses start at $175.
Foods that do not require refrigeration or time and temperature control: non-hazardous baked goods, candy, jams and jellies, dry herbs, trail mix, granola, mixed nuts, flavored vinegar, popcorn, coffee beans, dry tea, and home-canned pickles, vegetables, or fruits with an equilibrium pH of 4.6 or lower made from National Center for Home Food Preservation approved recipes or recipes reviewed by a process authority. You can ask the Department for a written determination on products not listed. Anything needing refrigeration or temperature control (the Health Department's examples: quiche, cheese danish, cheesecake; cream-filled and custard items fall in the same category), home-canned low-acid foods outside the approved limits, and Agency of Agriculture products such as meat, poultry, and dairy.
Yes: $30,000 in gross annual cottage food sales for the exemption ($10,000 for the separate non-bakery processor exemption); these limits took effect July 1, 2025, replacing the old $125-per-week home baker rule. No cap once licensed..
Direct to consumers: farmers markets, craft fairs, festivals, from home, and online. The key restriction: exempt food cannot be sold to restaurants or other licensed food establishments, so no wholesale to stores or restaurants without a license. Interstate shipping is governed by federal law and generally takes you outside cottage food protections.
All packaged exempt products need: the operation's name and address, product name, ingredients in descending order by weight, net weight or volume, federal allergen information (including sesame), and the statement 'Made in a home kitchen not inspected by the Vermont Department of Health' in at least 10-point type in a contrasting color. Nutrition Facts are only required if you make a nutrient or health claim.
Vermont's 6 percent sales tax does not apply to grocery-type food for home consumption, so most packaged cottage foods are not taxed. The 9 percent Meals Tax applies to food sold ready for immediate consumption: single-serving bakery items sold in quantities of fewer than three are taxable meals, but three or more at once are not, and whole pies, cakes, and bread loaves are not taxable. If you sell taxable meals at fairs, register for a Meals and Rooms Tax account.
Browse upcoming craft fairs and markets in Vermont 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.