The Texas cottage food law now allows home-based food producers to sell an expanded list of products through additional sales channels as the state continues updating regulations that support small food entrepreneurs. The law permits Texas residents to produce and sell certain low-risk foods from home kitchens without commercial licensing requirements.
Texas Department of State Health Services officials confirmed the current regulations allow annual gross sales up to $50,000 per producer. The law covers specific food categories including baked goods, candy, dried herbs, roasted coffee, and dried fruit.
Also Read: Best Ramen in Dallas, Texas
Texas Cottage Food Law Permits Direct Sales Without Commercial Kitchen Requirements
The texas cottage food law eliminates the need for commercial kitchen facilities for approved food categories. Home producers can operate from residential kitchens that meet basic sanitation standards outlined in state health code.
Producers must register with the Texas Department of State Health Services before beginning sales. Registration costs $125 for the initial two-year period. Renewal fees remain at $125 for subsequent two-year periods.
The law requires producers to complete a basic food handler course approved by the Texas Department of State Health Services. Most approved courses cost between $10 and $25. The certification remains valid for two years.
Sales must occur directly between the producer and consumer. The texas cottage food law permits sales at farmers markets, farm stands, municipal events, and from the producer’s home. Direct delivery to consumers within Texas also falls under approved sales methods.
Online sales became explicitly legal under amendments passed in 2019. Producers can advertise products online and accept orders through websites or social media platforms. Payment and delivery must follow direct transaction requirements.
Foods Allowed Under the Texas Cottage Food Law
The Texas cottage food law strictly defines which foods are allowed. These foods must be shelf-stable.
Allowed foods include:
- Baked goods without cream fillings
- Cookies, cakes, and brownies
- Bread and rolls
- Fruit pies and empanadas
- Jams, jellies, and preserves
- Dry mixes and spices
- Candies and coated nuts
- Granola and cereal products
- Dehydrated fruits and vegetables
Foods that require refrigeration for safety are not allowed. This includes meat dishes, dairy-based items, and cooked meals.
Foods Not Allowed Under the Texas Cottage Food Law
Under the Texas cottage food law, certain foods remain prohibited due to safety risks.
Not allowed:
- Meat or poultry products
- Seafood
- Dairy-based items
- Cream or custard fillings
- Canned vegetables
- Salsa and pickled foods
- Cooked meals
- Beverages, including juices
DSHS states that these items require temperature control or commercial processing to meet safety standards.
Revenue Limits and Product Restrictions Under Texas Cottage Food Law
Annual sales cannot exceed $50,000 per calendar year per household. This limit applies to the physical address where production occurs rather than individual producers.
Producers earning between $25,000 and $50,000 annually must provide quarterly sales reports to the Texas Department of State Health Services. The reports must include total sales figures and product categories sold during each quarter.
The texas cottage food law prohibits certain food categories due to food safety concerns. Meat products, dairy items requiring refrigeration, canned vegetables, and foods containing cream cheese or custard fillings remain banned from cottage food production.
Approved products must have low water activity or high acid content. These characteristics prevent bacterial growth at room temperature. State health officials maintain a list of pre-approved foods that meet safety criteria.
Producers seeking to sell items not on the pre-approved list must submit product information to health officials. The review process examines water activity levels, pH measurements, and preparation methods.
Also Read: How to Become a Foster Parent in Texas
Labeling Requirements and Consumer Protection Rules
Every cottage food product sold in Texas must include specific label information. Labels must display the producer’s name and physical address. A complete ingredient list must appear in descending order by weight.
The texas cottage food law mandates a specific disclaimer statement on all products. Labels must state: “This food is made in a home kitchen and is not inspected by the Department of State Health Services or a local health department.”
Font size requirements ensure consumers can read the disclaimer easily. The statement must appear in at least 10-point type. All label text must use English language.
Products containing common allergens require additional labeling. Producers must identify if items contain milk, eggs, wheat, soy, peanuts, tree nuts, fish, or shellfish. The allergen statement must appear clearly on the main label panel.
Local health departments cannot add requirements beyond state regulations. The texas cottage food law establishes statewide standards that supersede local ordinances.
Texas Cottage Food Producers Report Growing Market Demand
More than 12,000 registered cottage food producers currently operate in Texas according to state health department data. Registration numbers increased 18 percent between 2024 and 2025.
Harris County leads the state with approximately 1,800 registered producers. Travis County reports 1,200 registered operations. Dallas County accounts for roughly 1,100 cottage food businesses.
Farmers markets throughout Texas report cottage food vendors comprise 30 to 40 percent of total vendor participation. Market managers say baked goods and specialty preserves generate strong consumer demand.
Rural producers use cottage food status to supplement farm income. Several agricultural extension agents across Texas report increased questions about cottage food regulations from farmers market vendors and roadside stand operators.
Comparison With Commercial Food Business Regulations
Commercial food manufacturers in Texas must obtain permits from local health departments. Inspection requirements vary by municipality but typically include quarterly facility reviews.
Commercial kitchen facilities must meet extensive equipment and design standards. Three-compartment sinks, commercial-grade refrigeration, and proper ventilation systems cost between $50,000 and $200,000 for basic setups.
The texas cottage food law allows home producers to avoid these capital expenses. This lower barrier to entry helps small-scale food entrepreneurs test products before investing in commercial facilities.
Some cottage food producers eventually transition to commercial operations. Health officials report approximately 15 percent of cottage food businesses apply for commercial licenses within three years of starting operations.
Inspection and Enforcement Under Texas Cottage Food Law
The texas cottage food law does not require routine health inspections of home kitchens. State health officials can investigate in response to verified complaints or suspected foodborne illness outbreaks.
Producers must allow inspection if health officials have reasonable cause to suspect unsafe practices. Refusal to permit inspection constitutes grounds for immediate suspension of cottage food registration.
Violations of sales limits or product restrictions can result in registration revocation. Producers selling prohibited items face potential penalties up to $1,000 per violation. Repeat offenses may result in permanent prohibition from cottage food operations.
Local health departments maintain limited enforcement authority. Departments can investigate complaints but cannot create rules stricter than state regulations.
Additional Sales Channels and Business Models
The texas cottage food law permits sales at wholesale to retail establishments in limited circumstances. Producers can sell to retail stores if the transaction occurs directly between producer and store owner.
Retail stores purchasing cottage food products cannot resell items as their own products. Clear labeling must identify the original producer and include required cottage food disclaimers.
Restaurants and food service establishments cannot serve cottage food products to customers. This restriction protects the direct-to-consumer sales model required under state law.
Nonprofit organizations may purchase cottage food items for fundraising events. The organization must clearly identify products as cottage foods when reselling to event attendees.
Resources and Training for Cottage Food Producers
Texas A&M AgriLife Extension Service offers free educational materials about cottage food regulations. County extension offices throughout the state provide workshops covering food safety, labeling requirements, and business basics.
The Texas Department of State Health Services maintains an online portal with registration forms and instructional guides. The portal includes approved food lists and label templates.
Several Texas municipalities operate small business development centers that assist cottage food producers. Centers provide guidance on pricing strategies, market selection, and basic accounting practices.
Industry associations formed by cottage food producers share best practices and advocate for regulatory improvements. The Texas Cottage Food Producers Association reports more than 800 members statewide.
Economic Impact of Texas Cottage Food Operations
Cottage food businesses contribute an estimated $120 million annually to the Texas economy based on maximum revenue calculations. Actual economic impact likely ranges between $60 million and $90 million when accounting for producers earning below maximum limits.
Most cottage food operations function as part-time ventures supplementing household income. Survey data from agricultural extension offices indicates average cottage food earnings range from $5,000 to $15,000 annually per producer.
The texas cottage food law supports rural economic development by enabling farm families to add value to agricultural products. Several rural counties report cottage food sales comprise significant portions of farmers market vendor revenues.
Employment impacts remain limited as most producers work alone or with family members. The law prohibits hiring non-family employees for cottage food production.
Recent Legislative Discussions and Potential Changes
State legislators have introduced bills proposing increased sales limits during recent sessions. Proposals to raise the annual cap to $75,000 or $100,000 have received committee consideration but have not passed.
Some lawmakers advocate for expanded product categories. Draft legislation has suggested allowing certain dairy products like hard cheeses with proper pH controls.
Consumer advocacy groups generally support the current framework while suggesting enhanced enforcement mechanisms. Food safety experts recommend maintaining restrictions on potentially hazardous foods.
Industry representatives continue working with health officials to clarify gray areas in existing regulations. Recent guidance documents addressed questions about decorative elements on baked goods and acceptable packaging materials.
The texas cottage food law receives periodic review as part of sunset commission processes examining state agency regulations. The next scheduled review will occur in 2027.
Texas cottage food producers can access current regulations through the Department of State Health Services website. The agency updates guidance documents quarterly based on common questions from registrants.
Leave a Comment