In Vermont, you can sell homemade shelf-stable foods under a cottage food operator exemption (up to $30,000/year) with no license — home bakers only need a license once they exceed $125/week. The main step is a free Health Department online training and an annual exemption form. This guide covers exactly what you can sell, how to qualify, how to label it, and how to start.
The short version: Vermont's cottage food operator exemption covers up to $30,000 of cottage foods per year (plus up to $10,000 of processed foods under a separate exemption) with no license. Home bakeries selling under $125/week need no license or inspection; above that, a home baker license costs $100. To claim the exemption you take a free Health Department online training (covering the Manufactured Food Rule) and file an exemption form by January 15 each year. Allowed foods are shelf-stable items, and labels need the "home kitchen not inspected by the Vermont Department of Health" statement.
The cottage food operator exemption covers up to $30,000/year in cottage foods. There's also a separate exemption for processed foods up to $10,000/year. Home bakeries can sell under $125/week with no license; above that requires a $100 home baker license.
| Vermont rule | Detail |
|---|---|
| Cottage food exemption | Up to $30,000/year (no license) |
| Processed-food exemption | Up to $10,000/year |
| Home bakery | < $125/week: no license; > $125/week: $100 license |
| Required step | Free Health Dept online training + annual exemption form (by Jan 15) |
| Allowed foods | Non-TCS shelf-stable |
| Label statement | "Made in a home kitchen not inspected by the Vermont Department of Health" |
Under the cottage food operator exemption, no — but you must take the Vermont Health Department's free online training (covering the Manufactured Food Rule and food safety) and file a license exemption form by January 15 each year. For home bakeries, no license is needed if you sell under $125/week; above that, you apply for a $100 home baker license (which adds inspection). The exemption keeps entry free for most small sellers.
Vermont allows non-potentially-hazardous (non-TCS), shelf-stable foods. Commonly sold items include:
Foods requiring refrigeration are not covered. Confirm specifics with the Vermont Department of Health.
Vermont labels must include:
A simple compliant label might read: *"Green Mountain Granola — [Your Name], [Home Address]. Ingredients: oats, maple syrup, almonds (contains tree nuts). Made in a home kitchen not inspected by the Vermont Department of Health."* See our cottage food labeling guide for templates.
Vermont cottage foods are sold directly to consumers:
Confirm online/shipping specifics with the Health Department.
Because Vermont allows direct and online in-state sales, a real storefront helps you take orders and manage pickup without living in your DMs. Homegrown gives Vermont 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 Vermont-ready storefront live in about 15 minutes.
The exemption covers up to $30,000/year, with a separate $10,000 processed-food exemption — and home bakeries can scale past those by getting the $100 license. The smart move is to start under the exemption and upgrade as demand grows. A few ways to get the most out of it:
Vermont's exemption rewards starting lean and scaling deliberately: most sellers begin well under the $30,000 cottage food cap, build a loyal base through markets and online pickup, and only take on the $100 home baker license once weekly demand clearly justifies it.
Vermont's exemption rewards starting lean under the $30,000 cap and adding the $100 home-baker license only once weekly demand clearly justifies it.
Cottage food rules cover food safety, not the business side, and the specifics differ by state. For Vermont: Vermont exempts most food but taxes some prepared items; register with the Department of Taxes and confirm whether your products are taxable. A few more steps worth handling before you grow:
None of these replace the exemption form or training, but handling them early keeps your business clean as it scales.
Always confirm current thresholds and the allowed-food list with the Vermont Department of Health.
Up to $30,000/year under the cottage food operator exemption, plus up to $10,000/year of processed foods under a separate exemption.
Not under the exemption (you take a free online training and file an annual form). Home bakeries selling over $125/week need a $100 home baker license.
Non-perishable foods — baked goods, candy, jams and jellies, dry herbs, flavored vinegar, coffee, tea, granola, and popcorn.
A free Vermont Health Department online training covering the Manufactured Food Rule and food safety, plus filing a license exemption form by January 15 each year.
Producer name and home address, product name, complete ingredients in descending order, allergens, and the statement "Made in a home kitchen not inspected by the Vermont Department of Health."
Home bakeries selling under $125/week need no license; once you regularly exceed that, you apply for a $100 home baker license, which adds an inspection.
Yes, directly to consumers for pickup or local delivery. Confirm any shipping specifics with the Health Department.
By January 15 each year, after completing the free Health Department online training.
Take the free training, file your exemption form, and you can sell up to $30,000 a year with no license. Set up a Homegrown storefront for Vermont orders with pickup, then compare the rules in nearby states like New Hampshire, Maine, Massachusetts, and New York, 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 the Vermont Department of Health before selling. Last verified: June 2026.*
