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Evan Knox
Cofounder, Homegrown
Getting Started

Texas Cottage Food Law (2026): $150K Cap, No Permit Needed

In Texas, you can sell most homemade foods directly to customers with no permit, no license, and no kitchen inspection, up to $150,000 in gross annual sales per household. As of September 1, 2025, Texas switched to an "everything except a short prohibited list" model under Senate Bill 541, so you can now sell far more than baked goods — including some refrigerated foods. This guide covers exactly what you can sell, how to register if you make perishable foods, how to label everything, and how to start this week.

The short version: Texas has one of the most permissive cottage food laws in the country. SB 541 (effective September 1, 2025) tripled the sales cap to $150,000, flipped the rules so you can sell anything not specifically banned, and for the first time allowed certain time/temperature-controlled (TCS) foods like cream pies and fresh salsa — as long as you register for free. You do not need a permit to start, and local health departments are barred from requiring one. The only real work is labeling your products correctly and, if you sell perishable foods, completing a free state registration.

What Is the Texas Cottage Food Sales Limit?

The Texas cottage food limit is $150,000 in gross annual income per household, raised from $50,000 under SB 541. The Texas Department of State Health Services (DSHS) adjusts this figure each year for inflation. There is no per-item or per-month cap — only the annual household total.

Texas cottage food ruleDetail
Annual sales cap$150,000 gross per household (inflation-adjusted)
Permit / licenseNot required — local governments cannot require one
RegistrationFree; required only to sell TCS foods or wholesale
Allowed foodsAnything except the prohibited list below
Where you can sellDirect, online (you deliver), markets, farm stands, restaurants, retail, wholesale
ShippingIn-state only; no interstate shipping
Effective lawSB 541, September 1, 2025

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

No. A Texas cottage food production operation does not need a permit, license, or inspection to start. SB 541 specifically prohibits local public health entities from regulating cottage food production, requiring a license or permit, or charging any fee to produce or sell directly to consumers.

Free registration is a separate, lighter step. You register through the Texas DSHS Cottage Food Registry (registration opened September 1, 2025) if you want to sell TCS / perishable foods or sell wholesale to a registered "cottage food vendor." If you only sell shelf-stable foods directly to customers, registration is optional — its main benefit is giving you a DSHS unique ID number to put on labels instead of your home address.

What Foods Can You Sell Under Texas Cottage Food Law?

Texas now uses an exclusion model: you can sell any food you make at home *except* the prohibited categories, per Texas DSHS. Commonly sold allowed foods include:

  • Breads, cookies, cakes, and pastries
  • Candies, confections, and chocolates
  • Jams, jellies, and fruit preserves
  • Dry mixes, granola, roasted coffee, and popcorn
  • TCS foods newly allowed by SB 541 — cream pies, cheesecakes, cold pasta salads, and fresh salsas (registration required)

Prohibited foods:

  • Meat and poultry products
  • Seafood, fish, and shellfish products
  • Ice products, ice cream, frozen custard, popsicles, and gelato
  • Low-acid canned goods (such as home-canned green beans)
  • Cannabidiol (CBD) or tetrahydrocannabinol (THC) products
  • Raw milk and raw milk products

TCS foods cannot be sold wholesale or donated. When in doubt, the test is whether the food is on the prohibited list.

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

  1. Confirm your product is allowed — check it against the prohibited list above.
  2. Register if you sell TCS foods or wholesale — free, through the DSHS Cottage Food Registry; skip if you only sell shelf-stable foods directly.
  3. Set up safe production — even without inspection, follow good food-safety and allergen practices.
  4. Create compliant labels — include the required statement (below), your name/address or DSHS ID, product name, and allergens.
  5. Pick your sales channels — direct, online with personal delivery, farmers markets, farm stands, restaurants, or retail.
  6. Start selling — track your gross sales toward the $150,000 household cap.

What Must a Texas Cottage Food Label Include?

Every cottage food product in Texas must carry a label with these elements:

  • Your operation name
  • Your address or DSHS unique ID number
  • The product's common name
  • A declaration of any major allergens
  • This exact statement: "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."

If you sell TCS foods, also include the date the food was made and a safe-handling statement in at least 12-point font: *"SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption."* See our cottage food labeling guide for templates.

Where Can You Sell Cottage Foods in Texas?

Texas is unusually flexible on sales channels. You can sell:

  • Directly to consumers in person
  • Online, as long as you, an employee, or a household member personally delivers the order (no interstate shipping)
  • At farmers markets and farm stands
  • Through food service establishments and retail stores
  • Wholesale to registered cottage food vendors (non-TCS foods only)

Because online ordering with local pickup or personal delivery is explicitly allowed, a real storefront makes selling far easier than juggling DMs and spreadsheets. Homegrown gives Texas cottage food 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 a Texas-legal storefront live in about 15 minutes.

What Mistakes Should You Avoid Selling Cottage Food in Texas?

  • Shipping out of state — Texas cottage food sales must stay in Texas; you (or your household) must personally deliver online orders.
  • Selling a prohibited food — meat, seafood, ice cream, low-acid canned goods, CBD/THC, and raw milk are off-limits.
  • Skipping registration for TCS foods — cream pies and salsas require the free DSHS registration first.
  • Missing the exact label statement — the all-caps "private residence" disclaimer is mandatory.
  • Wholesaling TCS foods — TCS items can't be sold wholesale or donated.

What Recently Changed in Texas's Cottage Food Law?

  • Before SB 541 — a $50,000 cap and an approved-foods-only list.
  • September 1, 2025 (SB 541) — tripled the cap to $150,000, switched to the exclusion model, legalized many TCS foods with free registration, created a wholesale "cottage food vendor" path, and reaffirmed that local governments can't impose permits or fees.

Read a plain-English breakdown from the advocacy group Homemade Texas.

Frequently Asked Questions

How much can you make selling cottage food in Texas?

Up to $150,000 in gross annual sales per household under SB 541, adjusted for inflation each year by Texas DSHS. There is no monthly or per-product limit.

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

No. Texas requires no permit, license, or kitchen inspection, and local governments are prohibited from requiring one. Free registration is only needed to sell perishable (TCS) foods or to sell wholesale.

Can you sell TCS foods like cream pies in Texas?

Yes, as of September 1, 2025. SB 541 legalized many TCS foods such as cream pies, cheesecakes, cold pasta salads, and fresh salsas, provided you register for free with DSHS first.

Can you sell cottage food online in Texas?

Yes. You can take orders online as long as you, an employee, or a household member personally delivers the product. You cannot ship cottage foods across state lines.

What foods are banned under Texas cottage food law?

Meat and poultry, seafood and fish, ice products and ice cream, low-acid canned goods, CBD/THC products, and raw milk. Almost everything else made in a home kitchen is allowed.

Do you have to register your Texas cottage food business?

Only if you sell TCS/perishable foods or sell wholesale. Registration is free through the Texas DSHS Cottage Food Registry and also gives you a unique ID for labels.

Do local cities in Texas require a cottage food permit?

No. SB 541 bars local public health entities from requiring a license, permit, or fee for cottage food sold directly to consumers.

Can you sell wholesale to stores in Texas?

Yes, non-TCS foods can be sold wholesale to registered cottage food vendors. TCS foods cannot be wholesaled.

Start Selling Cottage Food in Texas

Texas gives home food sellers more freedom than almost any state: a high cap, no permit, and a broad list of legal products. Once your labels are right and (if needed) your free registration is done, set up an easy way for customers to order and pay. Set up a Homegrown storefront to take Texas cottage food orders online with local pickup, then compare the rules in nearby states like Oklahoma, Louisiana, Arkansas, and New Mexico, 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 Texas DSHS before you start selling. Last verified: June 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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