In Oregon, you have three paths for selling homemade food: a fee-free Cottage Food Exemption (capped at $52,700 for 2026), a Farm Direct law for growers, and an optional Domestic Kitchen License ($208/year) to exceed the cap or ship out of state. A $10 food handler card is required either way. This guide covers exactly what you can sell, which path fits, how to label it, and how to start.

The short version: Oregon's Cottage Food Exemption requires no license — just an Oregon food handler card ($10) — and lets you sell shelf-stable foods up to a CPI-indexed cap of $52,700 in 2026. If you want to exceed the cap, ship out of state, or sell foods outside the exemption, you can get a Domestic Kitchen License ($208/year) with an ODA inspection. Farmers who grow their ingredients have a separate Farm Direct path. No TCS, meat, fish, or marijuana under the exemption. Every label needs Oregon's specific homemade statement.

What Is the Oregon Cottage Food Sales Limit?

The Cottage Food Exemption cap is $52,700 for 2026 (CPI-indexed, raised from $51,200). To exceed it, use the Domestic Kitchen License.

Oregon path	Cottage Food Exemption	Domestic Kitchen License
Cap	$52,700 (2026)	No cap
License/fee	None (food handler card required)	$208/year + ODA inspection
Allowed foods	Non-TCS shelf-stable	Broader; can ship out of state
Food handler card	Required ($10, valid 3 years)	Required

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

The Cottage Food Exemption needs no license — just an Oregon-approved food handler card ($10, valid three years). The optional Domestic Kitchen License ($208/year, with an ODA inspection) is for operators who want to exceed the cap, ship out of state, or sell foods outside the exemption. Farmers who grow their main ingredient may use the Farm Direct Marketing Law instead. Most home sellers start with the fee-free exemption.

What Foods Can You Sell Under Oregon Cottage Food Law?

Under the Cottage Food Exemption, you can sell many shelf-stable, non-potentially-hazardous foods listed in the regulation. Commonly sold items include:

• Breads and non-perishable baked goods
• Cookies, cakes, and pastries
• Jams, jellies, and preserves
• Candies, granola, and dried goods

Not allowed under the exemption:

• Foods requiring temperature control (refrigeration)
• Products containing meat, fish, or shellfish
• Anything containing marijuana

The Domestic Kitchen License opens a broader range. Confirm specifics with OSU Extension.

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

1. Pick your path — the fee-free Cottage Food Exemption for most sellers, the Domestic Kitchen License to scale past the cap or ship out of state, or Farm Direct if you grow your main ingredient.
2. Get your food handler card — an Oregon-approved card ($10, valid three years) is required for the exemption.
3. Confirm your product is non-TCS — shelf-stable foods only under the exemption.
4. Set up safe production — follow good food-safety and allergen practices.
5. Label every product — include the required Oregon statement and the elements below.
6. Sell — direct and online in-state under the exemption, up to $52,700 for 2026.

What Must an Oregon Cottage Food Label Include?

Oregon labels must include:

• The product name
• Your information
• The ingredients
• Allergens
• The net weight or volume in both U.S. and metric units
• 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.

A simple compliant label might read: *"Willamette Shortbread — [Your Name]. Ingredients: flour, butter, sugar (contains wheat, milk). Net wt. 8 oz (227 g). This product is homemade, is not prepared in an inspected food establishment and must be stored and displayed separately if merchandised by a retailer."* See our cottage food labeling guide for templates.

Where Can You Sell Cottage Foods in Oregon?

Cottage Food Exemption sales are direct to consumers:

• At farmers markets and events
• From home
• Online for in-state pickup or delivery

The Domestic Kitchen License allows broader channels, including out-of-state shipping. Confirm specifics with ODA.

Because Oregon allows direct and online in-state sales, a real storefront helps you take orders and manage pickup without living in your DMs. Homegrown gives Oregon sellers an online storefront with built-in payments and pickup scheduling for $10/month at 0% commission — you keep every dollar except standard card processing. Start a free trial and have an Oregon-ready storefront live in about 15 minutes.

How Much Can You Make Selling Cottage Food in Oregon?

The exemption caps you at $52,700 for 2026 (it rises with inflation), and the Domestic Kitchen License removes the cap entirely. The smart move is to start fee-free and upgrade when demand justifies the $208 license. A few ways to get the most out of it:

Oregon's fee-free exemption gets you to $52,700 on a $10 food handler card; the $208 Domestic Kitchen License is worth it only once you need to exceed it or ship out of state.

• Price for margin — with a $52.7K exemption cap, what you keep per item matters more than raw volume, so cost out ingredients, packaging, your time, and card processing before you set a price.
• Start on the exemption — sell up to $52,700 with just a $10 food handler card.
• Upgrade to Domestic Kitchen — the $208 license removes the cap and unlocks out-of-state shipping.
• Turn one-time buyers into regulars — Oregon's best home sellers run weekly pickups, pre-orders, and seasonal boxes so revenue is predictable, not feast-or-famine.
• Track the cap — know when you're approaching $52,700 so you can move up in time.

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

Cottage food rules cover food safety, not the business side, and the specifics differ by state. For Oregon: Oregon has no statewide sales tax, so tax paperwork is minimal — keep income records and check whether your city or county wants a business license. A few more steps worth handling before you grow:

• Local business registration — Oregon has no general sales tax, but check whether your city or county requires a business license.
• Income records — keep simple sales records for income-tax purposes and to track the cap.
• Liability insurance — optional but smart once you sell regularly; a product-liability or home-business policy protects you if a customer ever claims an issue.

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

What Mistakes Should You Avoid Selling Cottage Food in Oregon?

• Skipping the food handler card — it's required even for the fee-free exemption.
• Exceeding the $52,700 cap — move to the Domestic Kitchen License before you pass it.
• Selling meat, fish, shellfish, or marijuana products — none are allowed under the exemption.
• Shipping out of state on the exemption — that requires the Domestic Kitchen License.
• Missing the dual-unit net weight or the Oregon statement — both are required on labels.

What Recently Changed in Oregon's Cottage Food Law?

• CPI-indexed cap — the Cottage Food Exemption cap rises with inflation, reaching $52,700 for 2026 (up from $51,200).
• Three-path structure — the fee-free exemption (ORS 616.695), the Farm Direct Marketing Law for growers, and the Domestic Kitchen License ($208/year) for scaling and out-of-state shipping.

Always confirm the current cap and allowed-food list with OSU Extension or the Oregon Department of Agriculture.

Frequently Asked Questions

What is the Oregon cottage food sales limit?

The Cottage Food Exemption cap is $52,700 for 2026 (CPI-indexed). To exceed it, get a Domestic Kitchen License.

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

Not for the Cottage Food Exemption — but you need an Oregon food handler card ($10). The optional Domestic Kitchen License ($208/year) is for exceeding the cap or shipping out of state.

What are Oregon's three home-food paths?

The Cottage Food Exemption (ORS 616.695), the Farm Direct Marketing Law (for growers), and the optional Domestic Kitchen License from the Oregon Department of Agriculture.

What foods can't you sell under Oregon's cottage food exemption?

TCS/refrigerated foods, meat, fish, shellfish, and marijuana products.

What label is required in Oregon?

Product name, ingredients, allergens, net weight/volume (U.S. and metric), and the 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."

How do you ship cottage food out of state from Oregon?

You need the Domestic Kitchen License ($208/year, with an ODA inspection). The fee-free Cottage Food Exemption is limited to in-state sales.

How much is the Oregon food handler card?

About $10, valid for three years. It's required for the Cottage Food Exemption and the Domestic Kitchen License alike.

Which Oregon path should you choose?

Start with the fee-free Cottage Food Exemption; upgrade to the Domestic Kitchen License if you want to exceed $52,700, ship out of state, or sell foods outside the exemption. Use Farm Direct if you grow your main ingredient.

Start Selling Cottage Food in Oregon

Pick your path — the fee-free exemption for most sellers, or the Domestic Kitchen License to scale past the cap — grab your food handler card, and you're ready. Set up a Homegrown storefront for Oregon orders with pickup, then compare the rules in nearby states like Washington, California, Idaho, and Nevada, or see the full cottage food laws by state hub.

*This guide is general information, not legal advice. Cottage food rules change — verify current requirements with OSU Extension or the Oregon Department of Agriculture before selling. Last verified: June 2026.*