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Evan Knox
Cofounder, Homegrown
Getting Started
October 9, 2026

Indiana Cottage Food Law (2026): No License or Cap

The short version: Indiana gives you two ways to sell food you make at home, and neither one needs a license, permit or kitchen inspection. The Home Based Vendor law has no sales cap and covers shelf-stable foods like cookies, bread, candy and full-sugar fruit jam, which you can sell in person, by phone or online and ship anywhere inside Indiana once you hold an ANSI-accredited food handler certificate. Since July 1, 2026, a second path under House Enrolled Act 1424, the homestead vendor law, also covers prepared foods and meat from animals you raise, sold at your property or a farmers market, up to $1.5 million a year in gross sales. Each path has its own required label statement, and neither one lets you sell to stores or to buyers outside Indiana.

Checked on the Indiana Department of Health's Home-Based Vendor Handbook (summer 2025 edition), its May 26, 2026 homestead memo and the enrolled text of HEA 1424, October 8, 2026. Your county health department enforces both laws, so confirm a new product with them before you sell it.

Once you have your food handler certificate, you can set up a Homegrown storefront so local customers can order ahead, and try it free for 7 days.

$0State license, permit or inspection fee a Home Based Vendor pays in Indiana
$1.5 millionYearly gross sales ceiling for the new homestead vendor path (Home Based Vendors have no ceiling)
7%Indiana sales tax your customer pays on candy like caramel apples; bakery items sold without utensils are exempt

In Indiana, you can sell homemade shelf-stable foods as a Home Based Vendor (HBV) with no license, no permit, no inspection, and no sales cap. The one credential you need is an ANSI-accredited food handler certificate, and a copy goes to your county health department. You can take orders online and ship within Indiana. A newer law, in effect since July 1, 2026, adds a homestead vendor path for prepared foods and home-raised meat. This guide covers exactly what you can sell under each path, how to label it, where you can sell it, the sales tax rules that still apply, and how to start.

Ready to begin? Follow our step-by-step guide to starting a cottage food business in Indiana.

Does Indiana Have a Cottage Food Sales Limit?

No, Indiana's Home Based Vendor law sets no limit on gross annual revenue, so a vendor who sells $3,000 of cookies a year and one who sells $90,000 follow the same food rules. The statute, Indiana Code 16-42-5.3, contains no dollar cap, no income test and no production limit. The limits it does set are about what you make, where you make it, who buys it and how it is labeled.

The new homestead vendor path is different. A homestead vendor is defined in the 2026 law as someone who receives no more than $1,500,000 in gross sales of food products or meat products in a single year. Few home kitchens will ever get near that ceiling.

Scroll sideways to see every column.

Indiana ruleHome Based Vendor (IC 16-42-5.3)Homestead vendor (IC 16-42-5.4, since July 1, 2026)
Annual sales capNoneNo more than $1,500,000 in gross sales a year
License / registration / inspectionNone; you file a copy of your food handler certificate with the countyNone beyond what federal law requires
Required trainingANSI-accredited food handler certificate (ServSafe Food Handler qualifies), alwaysThe same certificate, but only if you ship or deliver
Allowed foodsFoods that do not need time or temperature control for safety: baked goods, candy, full-sugar acid-fruit jams, and moreMeat products from animals you raise, prepared foods including baked goods, candy, produce, natural sweeteners, fruit spreads
Where you make itYour primary residence (the statute includes a permanent structure on the same property, but the 2025 handbook answers a question about sheds and barns only by saying HBVs must use their primary residence, so check with the county health office before you set up an outbuilding kitchen)Your property: your primary residence or agricultural land you own or lease
Where you can sellIn person, by phone or online; delivered in person, by mail or by a third-party carrier, within IndianaOn your own land or at a farmers market; shipping or delivery within Indiana with the certificate
Label statementThe "home produced and processed ... NOT FOR RESALE" advisory statement, quoted in full in the label section (10-point type)The homestead "exempt from government licensing and inspection" statement, quoted in full in the label section (10-point type)

We read every row against the statute text printed in the state's 2025 HBV handbook, the enrolled text of HEA 1424 and the department's May 26, 2026 memo to local health departments, all on October 8, 2026.

Do You Need a License to Sell Food From Home in Indiana?

No, Indiana requires no license, registration, permit or kitchen inspection to sell homemade food as a Home Based Vendor, and there is no "home-based vendor license" to apply for. The statute says HBV food production and sales are exempt from the rules that apply to food establishments, and the state health department's handbook says HBVs are not subject to routine inspections or product sampling. The one credential you need is an ANSI-accredited food handler certificate. You can take the ServSafe Food Handler class in person through Purdue Extension or online through ServSafe, and Purdue's home-based vendor page says the certificate is valid for three years.

Three duties come with that certificate, and the first one is easy to miss:

  • Give a copy to your county health department. Section 7(c) of the statute says you "shall provide a copy" to the local health department in the county where you live. It is not a permit or an application, but it is a step.
  • Show it on request. You must hand a copy to the state health department or to any customer who asks.
  • Keep it current. A certificate that has lapsed means you no longer meet the law's training requirement.

Cities, towns and counties cannot add their own license on top. Section 12 says a local unit of government "may not by ordinance or resolution require any licensure, certification, or inspection" of HBV foods. A health department can still inspect your kitchen if it gets a consumer complaint or believes a product is misbranded or adulterated.

In Indiana

The farmers market cannot demand a food license from a Home Based Vendor. The state health department's HBV handbook says HBVs "do not require food permitting by law," though a market manager may ask to see your food handler certificate and proof of liability insurance.

What Is the Difference Between a Home Based Vendor and a Homestead Vendor?

The difference is scope: a Home Based Vendor sells shelf-stable foods with no sales cap almost anywhere in Indiana, while a homestead vendor can sell a much wider list, including prepared foods and home-raised meat, but only on their own land or at a farmers market and only while gross sales stay at or under $1.5 million. House Enrolled Act 1424 created the homestead path in March 2026 as a new chapter of the Indiana Code (IC 16-42-5.4), and it took effect on July 1, 2026. The state health department's May 26, 2026 memo is plain that the older law did not go away: "all statutes for home-based vendors (IC 16-42-5.3) remain in force."

That means you pick the path that fits what you make. A sourdough baker who ships loaves to customers in Fort Wayne and Evansville fits the HBV law well. A family that raises chickens and wants to sell frozen pot pies at the Saturday farmers market is the kind of vendor the homestead law was written for. Check first, though: the state's May 26, 2026 memo warns that meat pies may fall under federal USDA rules.

Swipe sideways to see each answer.

QuestionHome Based VendorHomestead vendor
Can I sell cookies, bread and fudge?YesYes (baked goods and candy are both on the list)
Can I sell cheesecake or a casserole?No; foods that need refrigeration are outThe law lists "prepared foods"; the state warns meat-containing ones may fall under federal USDA rules
Can I sell meat?NoOnly from animals raised on your property and slaughtered, processed and labeled under IC 15-17-5
Can I sell at a craft fair or festival?Yes, if the organizer allows itThe law names only your property and farmers markets
Can I sell online?Yes, by phone or internetThe state's memo lists online sales and delivery; shipping needs the food handler certificate
Do I need a food handler certificate?AlwaysOnly to ship or deliver
Is allergen labeling required?No, but the state encourages itYes, a description of allergens the food may have touched

From IC 16-42-5.3 as printed in the 2025 HBV handbook, IC 16-42-5.4 sections 6 to 9 (added by HEA 1424), and the department's May 26, 2026 memo, checked October 8, 2026. Rows marked "the law names" are our reading of the statute's wording, not a ruling.

Watch out

The homestead law is new, and the guidance around it is still filling in. When we checked on October 8, 2026, Purdue's home-based vendor page told readers to "stay tuned for additional resources," and the state memo notes that farmers markets "can be more restrictive than state law" about what they let vendors sell. Call your county health department and your market manager before you plan a homestead product line.

What Foods Can You Sell Under Indiana Cottage Food Law?

Indiana Home Based Vendors may sell foods that are not time/temperature controlled for safety (TCS), which means foods that stay safe on a shelf without refrigeration. The state health department wrote its summer 2025 handbook with Purdue's Food Entrepreneurship and Manufacturing Institute (FEMI), which tested 15 products that home bakers commonly make, and the handbook names far more allowed foods than the "cakes, cookies, breads, jams, and jellies" it calls the traditional HBV foods. Commonly sold products include:

  • Baked goods: cookies, cupcakes, cake pops, breads, bagels, pretzels, sourdough, scones, baklava and muffins
  • Candy and confections: fudge, truffles, hard candy, cotton candy, caramel apples, candy apples and hot chocolate bombs
  • Canned foods in glass jars: jams, jellies, preserves and high-acid fruit curds made from acid fruits with full sugar, plus acid fruits canned in simple syrup
  • Dry goods: granola and trail mix, dried fruit (not melon), dried pasta, crackers, chips, popcorn, and roasted, toasted or candied nuts
  • Other shelf-stable foods: nut butters, roasted coffee beans, dried herbs, spices and teas, honey, maple syrup, baking mixes and freeze-dried candy pieces no bigger than a small marble

The acid fruits the handbook names for jam are peaches, cherries, apricots, plums, apples, pears, citrus, blackberries, blueberries, raspberries and strawberries. Low-sugar, no-sugar and sugar-substitute jams are not allowed, and neither are jams made with low-acid ingredients like peppers, figs or mint. The full list sits in the Indiana Department of Health's Home-Based Vendor Handbook, and the handbook asks you to contact your local health department about any product it does not name.

What Are Indiana's Rules for Frosting, Cheese Bread and Pies?

Indiana home bakers can sell frosted cakes, cheese bread and fruit pies, but each comes with a specific condition from the 2025 handbook:

  • Buttercream and other icings must be commercially prepared and shelf-stable (not labeled "keep refrigerated") or made from a lab-tested recipe followed exactly. The handbook points to Kansas State and Iowa State Extension recipes.
  • Cheese bread and cheddar bites need uniformly shredded cheese baked to at least 165°F inside, and Purdue's study says cheese should stay under 10% of the formula by weight.
  • Quick breads and muffins with vegetables like zucchini bread need the produce uniformly shredded, mixed into the batter and baked to at least 165°F inside, never added on top. The handbook's muffin row adds one more rule: muffins must be made from a commercially prepared flour base mix.
  • Pies are allowed when the filling is high-acid fruit or pecan. Pumpkin, sweet potato, cream, custard and meringue pies "may exceed allowed pH and Aw values" and need testing, though the handbook's not-allowed list also names cream fillings for pies and pastries outright.

Purdue tested five pie types for the handbook. Pumpkin pie measured a water activity of 0.9704, sugar cream pie 0.9363 and buttermilk pie 0.8932, all above the 0.85 line below which pathogens cannot grow. The handbook's approved list names only high-acid fruit and pecan pies, so the others need your own lab test.

Do You Need a Permit to Sell Candy From Home in Indiana?

No, you do not need a permit to sell homemade candy in Indiana, because fudge, truffles, hard candy, caramel apples and cotton candy are all on the Home Based Vendor list. You do need the food handler certificate and the HBV label, the same as for cookies. The difference with candy shows up at tax time: Indiana's Department of Revenue treats most candy as taxable at 7%, while bakery items sold without utensils are exempt (more on that in the tax section below). Our guide to selling caramel apples from home covers pricing and packaging for one of the handbook's named candies.

What Foods Can't You Sell as an Indiana Home Based Vendor?

Indiana Home Based Vendors cannot sell any food that needs refrigeration or temperature control for safety, and the 2025 handbook names dozens of specific products that fall on the wrong side of that line. The broad categories it rules out are raw or cooked meat (including tallow), prepared foods like casseroles, charcuterie boards and ready-made meals, dairy products (commercial dairy used only as an ingredient is fine), and anything made with cut leafy greens, such as kimchi or sauerkraut.

Products people often ask about that the handbook lists as not allowed for HBVs:

  • Cheesecake, pumpkin rolls (unless the icing is commercially prepared or follows a lab-tested recipe), fruit tarts with pastry cream, and cream-filled pies or pastries
  • Pepper jelly, fig preserves, low-sugar or no-sugar jam, chutney and chow chow
  • Pickles, relish, fermented foods, acidified foods, marinades and homemade hot sauce or barbecue sauce
  • Beverages like kombucha, cold brew coffee and fresh-pressed juice, which carry their own rules
  • Homemade vanilla extract, supplements, and anything with CBD, Delta 8 or Delta 9
  • Pet treats, which the Office of Indiana State Chemist regulates instead
  • Boiled peanuts, cooked vegetables and blanched freezer corn, because cooked plant food needs temperature control
  • Repackaged bulk foods you did not make, such as protein powder poured into your own bags

Pepper jelly gets its own answer in the handbook: peppers have a pH of 4.8 to 6.0, which is above the 4.6 limit, and "the amount of sugar and pectin is not enough" to prevent botulism. If pepper jelly is your signature product, our guide to selling pepper jelly from home covers costing, pricing and the tested-recipe questions to ask in other states.

From Homegrown's own catalog

In a pull of the Homegrown catalog on October 8, 2026 (2,920 products from 313 vendors across many states, not Indiana alone), 11 listings from 4 vendors were hot pepper jams or jellies, priced $5 to $9. Nine named the pepper (jalapeño, habanero, Scotch bonnet, chipotle, Carolina Reaper or ghost pepper), and two were sold simply as "Pepper Jelly" and "Hot Pepper Jam." We searched product names and descriptions, read every match, then read every product each counted vendor lists. A "Dr Pepper Jelly" made from the soda was left out. Under Indiana's HBV handbook, none of those 11 could be made in an Indiana home kitchen for sale.

Some of these foods may fit the homestead vendor path instead. The 2026 law lists "prepared foods," and it says the state's rules on temperature-controlled foods "may not apply" to a homestead vendor. Our reading is that a homestead vendor could sell a cheesecake at their own farm stand or a farmers market, but pickles and pepper jelly are not named in the law at all, so ask your county health department before you count on either.

How Do You Start Selling Cottage Food in Indiana? (Step by Step)

Starting to sell cottage food in Indiana takes one scheduled step, a half-day food handler class, and everything else is work you do at your own kitchen table. Purdue Extension's 2026 in-person classes in northeast Indiana cost $40, manual and assessment included. The last of those was September 19, 2026, so check Purdue's ServSafe page (purdue.edu/servsafe) for the next dates or take the course online through ServSafe. Here is the order that works for a Home Based Vendor:

  • Confirm your product is non-TCS. Check it against the 2025 handbook's allowed and not-allowed lists. If it is not named, ask your county health department or Purdue FEMI, which can test a product's pH and water activity.
  • Get your ANSI food handler certificate. Take ServSafe Food Handler at a Purdue Extension class near you, or online on ServSafe's site. Purdue's classes run about half a day and end with a 45-question assessment.
  • File a copy with the county. Section 7(c) requires it, and it gives you a contact at the local health office for product questions later.
  • Set up safe production. Wash hands, keep pets out of the kitchen while you work, sanitize surfaces with a food-contact sanitizer, and store ingredients and finished products where they cannot be contaminated.
  • Label every product. Include all 6 required lines listed in the next section (the 10-point advisory statement is one of them), and post each label on your website if you sell online.
  • Register for sales tax. Indiana's sales tax page tells any business selling goods to get a Registered Retail Merchant Certificate through INBiz, the state's business portal. If your whole menu is exempt baked goods or jam, phone the Department of Revenue's sales tax line (317-232-2240) to confirm whether you need the certificate.
  • Choose your channels. In person, by phone and online, with pickup, delivery or in-state shipping (third-party carriers are allowed).
  • Start selling. There is no cap, no fee and nothing to renew except your certificate every three years.

If you plan to use the homestead path instead, the steps change: no certificate unless you ship or deliver, a different label, and sales limited to your property, a farmers market and (per the state memo) online orders and delivery.

What Must an Indiana Cottage Food Label Include?

An Indiana Home Based Vendor label must include 6 required pieces of information, set out in Section 5 of the statute: your name and address, the product's common name, the ingredients in descending order by weight, the net weight or volume, the date the food was processed, and the advisory statement in at least 10-point type. Unpackaged food, like cookies in a bakery case at the market, can use a sign with the same information instead of a label on each piece.

  • Your name and address as the vendor (your primary residence; the handbook says a PO Box does not meet the requirement)
  • The product's common or usual name
  • The ingredients, in descending order by predominance by weight
  • The net weight or volume, by standard measure or numerical count
  • The date the food was processed
  • This statement, set no smaller than 10-point type: This product is home produced and processed, and the production area has not been inspected by the state department of health. NOT FOR RESALE.

Allergens are not on that list. The handbook says allergen labeling "is not required" for HBVs but is "highly encouraged," and it names the nine major U.S. allergens: milk, eggs, wheat, soy, tree nuts, sesame, peanuts, fish and shellfish. Listing them is the smart move, and it costs one line.

A simple compliant label might read: *"Hoosier Honey Cookies. Your Name], [Home Address]. Made [date]. Ingredients: flour, butter, honey, sugar, eggs. Contains wheat, milk, eggs. Net wt. 10 oz. This product is home produced and processed, and the production area has not been inspected by the state department of health. NOT FOR RESALE."* See our [cottage food labeling guide for templates.

Selling online adds one more rule. Section 5(b) says a Home Based Vendor "shall post the label of each food product on the vendor's Internet web site." If you take orders through a website or online storefront, each product page needs its label where customers can see it.

Vendor tip

The required statement alone is 24 words, and it has to be at least 10-point type, so lay out your label around it first and fit the other 5 required lines after. Then photograph each finished label flat and in focus and add it to that product's page. One picture covers the Section 5(b) website rule and answers allergy questions before a customer has to message you.

What Goes on a Homestead Vendor Label?

A homestead vendor label needs 6 required lines too, but a different 6, set out in IC 16-42-5.4-7, which HEA 1424 added: the name of the homestead vendor or small farm owner, their address, the ingredients in descending order by weight, a description of the product, a description of allergens that might have come in contact with it, and this statement, also at 10-point type or larger: "This product was produced by a homestead vendor or the owner of a small farm that is exempt from government licensing and inspection."

Three differences from the HBV label catch people switching paths:

  • Allergens are required on a homestead label, not just encouraged.
  • The statement is different. Using the HBV "NOT FOR RESALE" wording on a homestead product, or the reverse, means the label does not match the law you are selling under.
  • The law's list has no processing date or net weight line, though the state memo's sample label still shows a net weight.

The memo also says homestead foods that need packaging must be packaged at your property before you take them to market, and you cannot cut, ladle, reheat or repackage them once you arrive.

Where Can You Sell Cottage Foods in Indiana?

Indiana Home Based Vendors can sell in person, by telephone or through the internet, and deliver in person, by mail or by a third-party carrier, as long as every buyer is an end consumer located in Indiana. The 2022 update to the law (HEA 1149) added the online and shipping options. In practice that covers:

  • Farmers markets, roadside stands, events and festivals (organizers can still say no), and sales from your home
  • Online and phone orders with pickup, your own delivery, mail or a carrier like UPS
  • A shop you own, such as an antique store, but only while you are there in person; the handbook says products "may not be left for sale at a business while the vendor is not present"

You have to make the sale yourself. The handbook's answer on employees and family members is that HBV food must be sold in person by the person who made it, and "products cannot be sold on their behalf." Your spouse can carry the cooler, but if they run the booth alone while you are at work, that is outside the law as the state reads it.

Market days add their own rules. Free samples depend on your local health department's sanitation requirements, so call before you put out a tasting plate. Our Indiana farmers market vendor permit guide covers what markets and counties ask for on the day.

Because Indiana allows online orders and in-state shipping with no cap, a real storefront helps you take orders, collect payment and post your labels without living in your DMs. Homegrown gives Indiana vendors a storefront with built-in payments, product pages with room for label photos, and pickup scheduling for $10 a month billed annually (or $12.50 month to month) with 0% commission, plus 2.9% + $0.30 card processing. Start a 7-day trial (no charge until day 8) and have an Indiana storefront live in about 15 minutes.

What Are Indiana's Rules for Shipping Cottage Food?

Indiana lets Home Based Vendors ship to customers anywhere inside the state, and Section 6 of the statute adds three duties when you ship or deliver:

  1. Use a sealed, tamper-evident package, one that lets the customer tell whether it has been opened.
  2. Keep a record of the shipping or delivery address of each customer for at least one year after the sale. The handbook says paper or electronic records both work.
  3. Hand those records to the state health department if it asks.

The statute says you "may not ship or deliver a food product to an end consumer who is located outside Indiana," and the handbook puts it more simply: all HBV products "must only be sold and shipped within the State of Indiana." So a customer in Indianapolis who wants a box of cookies mailed to her sister in Chicago is asking for a shipment the handbook does not allow. Homestead vendors follow the same in-state rule, with their own shipping conditions in IC 16-42-5.4-8 and -9 (added by HEA 1424): the food handler certificate before they ship or deliver at all, a sealed package, and meat kept refrigerated and handled so it cannot be contaminated. The homestead chapter does not repeat the HBV rule about keeping customer addresses for a year, though keeping them is still a good habit.

Which Food Operations Don't Need a Permit in Indiana?

At least five kinds of small food vendors in Indiana can sell without a retail food permit from the health department, as long as they follow the conditions attached to each. The common thread is that the food is low risk, sold straight to the person who eats it, and made or grown by the vendor. Here is the list, from the HBV statute, the 2025 handbook and the 2026 homestead law:

Scroll sideways to see each condition.

Who sellsWhat needs no permitThe condition that keeps it permit-free
Home Based VendorNon-TCS foods made in your primary residenceANSI food handler certificate, the HBV label, sales to Indiana end consumers only
Homestead vendor or small farm ownerMeat products, prepared foods, baked goods, candy, produce, natural sweeteners, fruit spreadsSold from your property or at a market, gross sales at or under $1.5 million, homestead label; certificate to ship or deliver
Produce vendorWhole, uncut fruits and vegetables, microgreens, gourds and intact cultivated mushroomsNot cut or processed; the handbook says these vendors are not HBVs at all
Farmers market or roadside stand vendorPoultry and rabbit meat under the farm exemptions, and eggs other than chicken eggsPoultry and rabbit frozen at the point of sale; chicken eggs need Indiana State Egg Board registration
Nonprofit fundraiserFood sold at the organization's own benefit eventA tax-exempt civic, fraternal, veterans or charitable group, events on no more than 15 days a year

Sources: IC 16-42-5.3 sections 10 and 11 and the produce and egg pages of the 2025 HBV handbook; HEA 1424 section 1, which carries the nonprofit exemption in the definition of "food establishment," checked October 8, 2026.

Anything outside those lanes, such as plating food at an event, selling refrigerated foods under the HBV law, or selling to a coffee shop, needs a permitted food establishment inspected by your local health department. The handbook says foods outside the HBV rule "shall be produced by a permitted operator within a Food Establishment."

Two other rules can still apply to a permit-free vendor. Local zoning is one: the handbook says HBV rules "only exempt operators from food related licensing and inspections," so check whether your town limits home businesses. Sales tax is the other, covered below.

Can You Sell Homemade Food to Stores or Restaurants in Indiana?

No, Indiana Home Based Vendors cannot sell to stores, restaurants, cafes, wholesalers or anyone else who plans to resell the food. The statute requires that HBV food is "not resold," and the label's own "NOT FOR RESALE" line says the same thing to anyone holding the package. The handbook spells it out: products "cannot be sold to a warehouse, retail food establishment, wholesaler or another entity that intends to further distribute the product."

A few situations come up often:

  • Consignment at a local shop: not allowed. Leaving $20 boxes of cookies at a coffee shop counter for the owner to sell is a resale, even if the owner keeps nothing.
  • Selling from your own shop: allowed while you are physically present, per the handbook's antique-store answer.
  • Donating to a food bank: not allowed. The handbook says food banks count as retail food establishments and "cannot accept donated food products from HBVs."
  • Donating a basket to a silent auction: allowed. The handbook says products "may be donated to private events for auction purposes."

The homestead path does not open the wholesale door either. The state memo says a homestead vendor "found selling beyond the end consumer" falls under federal food safety rules (21 CFR 117) and would need to register with the Indiana Department of Health as a wholesale food establishment. If selling to stores is your goal, that registration or a licensed commercial kitchen is the route.

How Much Can You Make Selling Cottage Food in Indiana?

With no cap on the Home Based Vendor path, Indiana does not limit your income; your ceiling is demand, time and how much your kitchen can produce. Because you can ship anywhere in the state, an Indiana vendor can sell to customers in Gary, Bloomington and Richmond from the same kitchen, not just the town around one farmers market.

Here is what an online month can look like in real numbers. Fifty orders of $20 each is $1,000 in sales. On Homegrown's annual plan, the fees on that month come to $54.00: $44.00 in card processing ($0.88 an order) plus the $10 plan. Those are the kinds of figures to build your prices around.

Indiana's legal in-state shipping is the multiplier: a Home Based Vendor can reach customers across Indiana, not just the local market. A few ways to get the most out of it:

  • Price for margin: with no cap, what you keep per item matters more than raw volume, so cost out ingredients, packaging, labels, your time, sales tax and card processing before you set a price.
  • Use in-state shipping: online ordering with Indiana shipping widens your market, and sturdy products like granola, hard candy and roasted coffee beans hold up well in a mailer.
  • Specialize: a standout cookie, candy or jam line earns loyalty faster than a broad menu, and the handbook's longer list (bagels, cheese bread, freeze-dried candy) gives you room to find one.
  • Turn one-time buyers into regulars: weekly pickups, pre-orders and seasonal boxes make revenue predictable instead of feast-or-famine.
  • Scale capacity: with no cap, how much you can produce becomes the real limit, so track how many batches your oven turns out in a baking day before you promise a bigger week.

What's the Simplest Way to Take Indiana Cottage Food Orders Online?

An Indiana Home Based Vendor who sells online needs a page that takes orders and payment, schedules pickup or delivery, and shows every label, because Section 5(b) of the statute requires the label of each product on your website. Homegrown is $10 per month billed annually (or $12.50 billed monthly) with no percentage fees beyond standard payment processing of 2.9% + $0.30. Each product gets its own page with room for several photos, so the label photo can sit next to the product photo. Customers pick from the pickup windows you set, or local delivery inside a radius of 1 to 25 miles, and Homegrown's signup page says it calculates sales tax at checkout and files and remits it for you, which matters if caramel apples or fudge are on your menu.

Here is what the common choices cost on a $20 order:

Drag sideways to see every fee.

Ordering toolSubscriptionTrialPlatform feeCard processingCustomer pays on a $20 orderYou pay on a $20 orderYou pay for 50 orders of $20
Homegrown (annual)$10/mo7 days, no charge until day 8$0, 0% commission2.9% + $0.30, paid by you$20.00$0.88 plus the plan$54.00
Homegrown (monthly)$12.50/mo7 days, no charge until day 8$0, 0% commission2.9% + $0.30, paid by you$20.00$0.88 plus the plan$56.50
Hotplate (its default: fee on the customer)$0No plan to trial5% + $0.55, added at the customer's checkout2.9% + $0.30, paid by you$21.55about $0.92$46.25, while your customers pay $77.50 in fees
Hotplate (you cover the fee)$0No plan to trial5% + $0.55, paid by you2.9% + $0.30, paid by you$20.00$2.43$121.50
Etsy$0 (a one-time set-up fee may apply)None listed$0.20 listing + 6.5% transaction3% + $0.25, paid by you$20.00 plus shipping$2.35$117.50

Checked October 8, 2026 on Homegrown's signup page, Hotplate's pricing page and its post "What Hotplate does" (which says "we charge a fee to your customer" and that 80% of Hotplate chefs keep that default), Etsy's Fees and Payments Policy, and Etsy's payment processing fee table for US bank accounts. Figures leave out sales tax, tips and shipping and were computed from unrounded inputs; Hotplate's default processing is figured on the $21.55 the card is charged.

What you pay for 50 orders of $20, card processing included

Hotplate, you cover fee$121.50
Etsy$117.50
Homegrown, monthly$56.50
Homegrown, annual$54.00
Hotplate, fee on customer$46.25

Source: the pricing pages in the table above, checked October 8, 2026. Hotplate's shortest bar leaves out the $77.50 its fee adds to your customers' checkouts.

Hotplate suits a vendor who sells in timed "drops," and Etsy brings shoppers who are already browsing. For an Indiana HBV, Etsy has a catch: its buyers come from every state, and the law lets you ship only inside Indiana, so any order headed outside Indiana is one you would have to turn away. Hotplate either adds $1.55 to your customer's $20 order while you still pay 2.9% + $0.30 processing (about $0.92), or costs you $2.43 in fee plus processing if you cover it. Homegrown fits an Indiana vendor who wants a steady weekly menu, local pickup and delivery, and label photos on every product page for one flat monthly price.

What Homegrown does not do, so you can decide with clear eyes:

  • It does not ship. Homegrown handles pickup and local delivery within a radius you set. If you mail orders around Indiana, you will still pack, label and ship them yourself. Whether you mail or deliver, keep each customer's shipping or delivery address for the one year the law requires.
  • It does not change the law. Foods the HBV list rules out, like cheesecake or pepper jelly, stay off your menu no matter what tool you use.
  • Customers create a Homegrown account to place their first order.
  • There is no drops or countdown-release feature, and no release date for one.
  • Homegrown lists your storefront on its marketplace, but plan on most orders coming from Indiana regulars you send to your own link.
  • Card processing (2.9% + $0.30) is paid by you, not passed on to your customer.

Do You Need Business Insurance or a Tax ID in Indiana?

Indiana's cottage food rules cover food safety, not the business side, so insurance is optional under the law, while sales tax registration runs through the Department of Revenue. Indiana's sales tax rate is 7%, and the Department of Revenue says a business that sells goods registers through INBiz for a Registered Retail Merchant Certificate. If everything you sell turns out to be exempt (see the table below), call the department's sales tax line at 317-232-2240 to ask whether you still need one. The good news for bakers is that most of what a Home Based Vendor makes is exempt from Indiana sales tax when it is sold unheated and without eating utensils.

The Department of Revenue's Sales Tax Information Bulletin #29 (September 2025) sorts the common HBV products like this:

Swipe sideways to see the tax reason.

ProductIndiana sales taxWhy
Bread, cookies, cakes, pies, muffins, donuts, bagels, barsExemptBakery items are excluded from "prepared food" by statute, unless you hand out utensils
Jams, jellies, preserves, honey, peanut butterExemptGrocery food on the bulletin's non-taxable list
Roasted coffee beans and groundsExemptListed as non-taxable
Caramel apples, chocolate-covered nuts, chocolate chips7%Candy: sweeteners in bar, drop or piece form, with no flour
Cereal or granola bars made without flour7%The bulletin calls them candy because they have no flour

From Appendix A of the Indiana Department of Revenue's Sales Tax Information Bulletin #29, publication date September 2025, loaded October 8, 2026. On $20 of caramel apples, your customer pays $1.40 in tax, for $21.40 in all.

A few more steps worth handling before you grow:

  • Sales tax registration: register through INBiz for the certificate, and collect 7% on anything taxable, such as candy. The Department of Revenue says a registered business must still file returns, even $0 returns, in periods with no sales, and late returns carry a penalty of up to 20%. Our guide to sales tax at farmers markets walks through booth sales.
  • Income tax: cottage food income is business income; our guide to cottage food taxes on Schedule C shows how it is reported.
  • Local business license and zoning: the HBV law blocks local food licenses, not zoning rules, so check whether your city or county limits home businesses.
  • Liability insurance: optional under the law but smart once you sell regularly, and a farmers market manager may ask you for proof of it before your first market day.
  • An LLC: optional; it separates business debts from personal ones, and none of the HBV rules require one.

None of these are part of the HBV statute itself, but handling them early keeps your business clean as it scales.

What Mistakes Should You Avoid Selling Cottage Food in Indiana?

The most expensive mistakes Indiana vendors make are the ones that quietly take a product outside the Home Based Vendor law, because the exemption only covers vendors who follow every condition. The state's May 2026 memo says a vendor who misses any requirement "will be considered an unlicensed retail food establishment." Watch for these:

  • Skipping the food handler certificate or letting it lapse: it is the one required credential, Purdue says it lasts three years, and a Purdue Extension class in northeast Indiana cost $40 in 2026.
  • Forgetting to give your county a copy: Section 7(c) requires a copy at your local health department.
  • Selling low-sugar or pepper jams: only full-sugar jams from acid fruits are allowed; peppers, figs, mint and sugar substitutes are out.
  • Using homemade buttercream: icing has to be commercially prepared and shelf-stable or made from a lab-tested recipe followed exactly.
  • Shipping out of state: every buyer, and every package, stays inside Indiana.
  • Selling to stores, restaurants or through consignment: only direct sales to the end consumer are covered, and you have to make the sale yourself.
  • Missing a label line: the "NOT FOR RESALE" statement is required in 10-point type, along with the processing date and your street address, not a PO Box.
  • Leaving labels off your website: online vendors must post each product's label on their site.
  • Mixing the two laws: a homestead product needs the homestead statement and an allergen line, not the HBV label.
Vendor tip

If your recipe is not on the handbook's list, you do not have to guess. Purdue FEMI tests a product's pH and water activity on request, and the handbook says you only need it tested once, in triplicate from three different batches, then again whenever you change the recipe.

What Recently Changed in Indiana's Cottage Food Law?

The biggest change took effect on July 1, 2026, when House Enrolled Act 1424 (Public Law 163 of 2026) created the homestead vendor and small farm path alongside the older HBV rules. Here is how Indiana's rules got here, from the state's HBV handbook, its homestead memo and the General Assembly's bill record:

  • 2009 (HEA 1309): created the Home Based Vendor category, letting people make select foods in their home kitchen and sell them directly to the end consumer.
  • 2022 (HEA 1149): let HBVs sell by phone and online and ship within Indiana by mail or third-party carrier, and added the food handler certificate requirement. Before this law there was no training requirement.
  • Summer 2025: the state health department and Purdue FEMI published the Home-Based Vendor Handbook, with lab data on 15 products and a far longer list of named allowed and banned foods.
  • March 2026 (HEA 1424): the General Assembly passed House Bill 1424, "Farm and homestead food sales", creating IC 16-42-5.4 for homestead vendors and small farms.
  • May 26, 2026: the state health department sent local health departments a memo on farm and homestead food sales confirming that all HBV statutes "remain in force" and setting out the homestead labeling, shipping and point-of-sale rules.
  • July 1, 2026: the homestead law took effect.

Three features define Indiana's HBV law today: no sales cap, online orders with in-state shipping by third-party carrier, and a ban on local governments adding their own license. Our cottage food laws by state hub shows how that compares with Indiana's neighbors.

Watch out

When we checked on October 8, 2026, the state health department had not posted a homestead handbook like the 2025 HBV one, and Purdue's page said more resources were coming. Rules like these can shift in any legislative session, so re-check the state health department's guidance documents page each January before you add a product.

Always confirm the current allowed-foods list and label wording with your county health department, which enforces both laws.

Frequently Asked Questions

Does Indiana have a cottage food sales limit?

No. Indiana cottage food law for Home Based Vendors sets no limit on gross annual revenue, so you can grow as large as your kitchen allows. The newer homestead vendor path, in effect since July 1, 2026, is the only one with a ceiling: $1.5 million in gross sales a year.

Do you need a license to sell food from home in Indiana?

No license, registration, permit or inspection. You must get an ANSI-accredited food handler certificate (ServSafe Food Handler, in person through Purdue Extension or online) and file a copy with the local health department where you live. Cities and counties are barred from adding their own license.

Can you sell cottage food online in Indiana?

Yes. Home Based Vendors can advertise, take orders online or by phone, and ship to customers within Indiana, including through third-party carriers. You must post each product's label on your website, and out-of-state shipping is not allowed.

What foods can you sell under Indiana cottage food law?

Indiana cottage food law covers foods that stay safe without refrigeration: baked goods, candy and fudge, full-sugar jams and jellies from acid fruits, honey, maple syrup, nut butters, roasted coffee, granola, dried pasta and more. Foods that need refrigeration, like cheesecake, along with meat, pickles, pepper jelly and fermented foods, are prohibited for Home Based Vendors.

What label is required in Indiana?

Your name and home address, the product's common name, ingredients by weight, net weight or volume, the processing date, and the state's 24-word advisory statement saying the product was home produced in a kitchen the state has not inspected, ending "NOT FOR RESALE," in 10-point type. Allergen labeling is encouraged but not required for Home Based Vendors.

Do you need a food handler certificate in Indiana?

Yes, if you sell as a Home Based Vendor. The certificate must come from an ANSI-accredited issuer, and Purdue says ServSafe Food Handler qualifies and is valid for three years. Homestead vendors need one only if they ship or deliver.

Can you ship cottage food within Indiana?

Yes. Indiana allows Home Based Vendors to ship directly to customers anywhere in the state, including by mail or a third-party carrier. Use a sealed, tamper-evident package and keep each customer's shipping or delivery address for at least one year.

Do you have to register your Indiana cottage food business?

No. There is no state registration or permit for Home Based Vendors, though the statute requires you to give a copy of your certificate to your county health department. Sales tax is separate: Indiana's tax department tells any business selling goods to register through INBiz for a Registered Retail Merchant Certificate, and you collect the 7% on taxable products like candy. A seller of only exempt baked goods or jam can confirm whether that applies by phoning the state's sales tax information line, 317-232-2240.

What is a homestead vendor in Indiana?

A homestead vendor sells food products or meat products from their property or at a farmers market and takes in no more than $1.5 million a year in gross sales. The category was created by House Enrolled Act 1424 and took effect July 1, 2026. It allows prepared foods and home-raised meat, requires an allergen line and its own label statement, and needs a food handler certificate only to ship or deliver.

Can you sell cheesecake from home in Indiana?

Not as a Home Based Vendor: the state health department's handbook lists cheesecake as a temperature-controlled food. The homestead vendor law allows "prepared foods" sold from your own farm stand or at a market, and our reading is that cheesecake could fit there, but confirm with your county health department first. Our guide to selling homemade cheesecake compares other states' rules.

These six guides pick up where this one stops. We checked each one live on October 8, 2026, and each answers a question this page only touches:

Start Selling Cottage Food in Indiana

With no cap, no permit, legal online sales and in-state shipping, Indiana is a straightforward state to start in once you have your food handler certificate. Your first week can be this simple: book a ServSafe Food Handler class, send the certificate to your county health department, check each recipe against the handbook, and print labels with all 6 required lines. Then decide whether the Home Based Vendor path or the new homestead path fits what you make. Once your labels are done, the next step is making it easy for customers to order and pay. Set up a Homegrown storefront for Indiana cottage food orders with pickup and local delivery, then compare the rules in nearby states like Ohio, Michigan, Illinois, and Kentucky, or see the full cottage food laws by state hub.

*This guide is general information, not legal advice. Cottage food rules change, so verify current requirements with the Indiana Department of Health and your county health department before selling. Last verified: October 8, 2026.*

About the Author

Evan Knox is the cofounder of Homegrown, where he works with hundreds of small food vendors across the country to sell online. He and his Co-founder David built Homegrown after seeing how many local vendors were stuck taking orders through DMs and cash-only sales.

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