Texas Cottage Food Law: What You Can Sell, Labels, and Delivery Rules
Texas cottage food law after SB 541: the $150,000 sales cap, which foods need DSHS registration, the label wording, and who may deliver online orders.
Texas cottage food law lets you make most foods in your own home kitchen and sell them without a local permit, as long as your gross income from those sales stays at or under $150,000 a year. That cap, the registration rules for perishable foods, and the new cottage food vendors all come from SB 541, which public health departments have had to follow since September 1, 2025 (Texas DSHS).
This guide covers the rules as the Department of State Health Services (DSHS) and the bill text state them: what you can make, where you can sell, what goes on the label, and who is allowed to deliver. The delivery rule is stricter than most people expect.
Key takeaways
- A cottage food production operation (CFPO) can gross up to $150,000 a year. The bill tells DSHS to adjust that figure each year for inflation using CPI-U (SB 541).
- Cities and counties can’t require a license or permit, or charge a fee, for a CFPO to produce food or sell it to consumers.
- Foods that need refrigeration for safety (TCS foods) are now allowed, but only after you register with DSHS.
- Online orders must be delivered in person by you, your employee, or a member of your household, so shipping is out.
- Every label carries the statement “THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”
What is a cottage food production operation in Texas?
It’s an individual working from their own home, or a nonprofit organization, that makes food and sells it directly to consumers or to a cottage food vendor, with annual gross income from those sales of $150,000 or less. The figure was $50,000 before SB 541 (bill text).
Three things changed in 2025:
| Rule | Before SB 541 | Since September 1, 2025 |
|---|---|---|
| Annual gross income cap | $50,000 | $150,000, adjusted each year for inflation |
| Perishable (TCS) foods | Not allowed | Allowed with DSHS registration |
| Selling through someone else | Direct to consumers only | Also through a registered cottage food vendor (non-TCS foods only) |
| Orders placed by mail | Allowed, with the same in-person delivery | Removed; only online orders remain |
The inflation adjustment uses the Consumer Price Index for All Urban Consumers. DSHS publishes the cap as $150,000 as of October 2026, so check its page for the current figure before you plan a year near the limit.
What foods can you sell under Texas cottage food law?
You can sell any food except the items on the prohibited list. DSHS lists these as off limits (DSHS):
- Meat, poultry, and their products
- Seafood, fish, shellfish, and their products
- Ice and ice products, including ice cream, frozen custard, popsicles, and gelato
- Low-acid canned goods
- Products containing CBD or THC
- Raw milk and raw milk products
Two groups come with conditions:
| Food group | Examples | Condition |
|---|---|---|
| TCS foods | Cheesecake, cream pies, cakes with cream cheese frosting | You must register with DSHS first, and the label needs the date made and a safe handling statement |
| Pickled, fermented, and acidified foods | Pickles, sauerkraut, pickled fruit, acidified canned goods | Use a recipe from an approved source and put a batch number on the label |
The approved recipe sources are the USDA Complete Guide to Home Canning (2015 revision), the University of Georgia’s So Easy to Preserve (6th edition), and certain Ball books. A recipe from anywhere else needs a written determination from DSHS before you sell it.
Do you need a license or registration?
You don’t need a local license or permit. DSHS states that local health entities cannot regulate a CFPO’s production, require any license or permit, or charge any fee for it to produce food, sell it to consumers or vendors, or hand out samples. They can still issue emergency or recall orders and act on an immediate threat to health.
State registration with DSHS depends on what you sell:
| Who | Registration with DSHS |
|---|---|
| A CFPO selling only shelf-stable (non-TCS) foods | Optional. Registering gives you a number to print on labels instead of your home address. |
| A CFPO selling any TCS food | Required |
| A cottage food vendor (a shop or café selling a CFPO’s food) | Required |
Everyone needs food handler training. The operator must complete an accredited food handler course, and DSHS accepts a Food Manager certification in its place.
Health permits are only one layer. HOA rules, deed restrictions, and sales tax are separate questions, so check those for your address and products too.
Where can you sell cottage food in Texas?
You can sell directly to consumers and hand the food over at the point of sale, or take orders online and deliver them in person. DSHS lists farmers markets, farm stands, food service establishments, and retail stores as places where cottage food vendors may sell.
The cottage food vendor is the new part. A vendor is a Texas business with a contract with your operation that sells your food to consumers on your behalf, such as a coffee shop that stocks your cookies. The limits are:
- The vendor must register with DSHS.
- Only non-TCS foods can go through a vendor. Cheesecake can’t.
- The vendor’s label must include the date the food was made.
Selling to a regular wholesaler or distributor is still not allowed. The bill keeps the general ban on wholesale, with the vendor arrangement as the only exception.
What has to be on a Texas cottage food label?
Every packaged product needs a legible label with (DSHS):
- The name of your operation
- Your address, or your DSHS registration number in its place
- The common name of the product
- Any major food allergen used, such as eggs, tree nuts, soy, peanuts, milk, wheat, or sesame
- The statement “THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”
- A batch number, for pickled, fermented, and acidified products
TCS foods also need the date made and a safe handling statement, printed in at least 12-point type on the label or on the invoice or receipt. It begins “SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen” and DSHS publishes the full wording. Unpackaged items, such as a cake handed over at a party, carry the label information on the invoice or receipt.
Can you sell cottage food online and ship it?
You can sell online, but you can’t ship. An online sale is allowed only if the operator, the operator’s employee, or a member of the operator’s household personally delivers the food to the consumer (SB 541, Sec. 437.0194). The same bill struck “or by mail order”, so orders placed by mail are no longer covered either.
Online sales come with two more steps from DSHS:
- Post the label information on your website before you take payment.
- Give the buyer your address or registration number after payment.
Can a delivery app or courier deliver for a cottage food business?
Not for online orders. The law names the people who may deliver them: you, your employee, or someone in your household. A delivery app driver or an independent courier isn’t on that list.
That’s the honest answer for a home baker in Texas. If your delivery days are getting too long to drive yourself, you have three options:
- Hire a driver as an employee. The law allows it. Our guide to in-house delivery drivers versus a courier service works through what one driver and one vehicle cost.
- Sell through registered cottage food vendors. A café or shop near your customers holds the stock and makes the sale.
- Move production to a licensed kitchen. Once you produce under a food establishment permit or a DSHS food manufacturer license instead of the cottage food exemption, the cottage food delivery rule no longer applies to you. You can then use a courier, sell wholesale, and send product to stores.
When should you move to a commercial kitchen?
Move when the cottage food rules start costing you sales. These are the usual signs:
| Sign | Why it matters |
|---|---|
| Sales are approaching the cap | Income from cottage food sales over the limit is outside the exemption |
| You want to sell meat, seafood, or ice cream | Those foods are prohibited from a home kitchen |
| A grocery store or distributor wants your product | Wholesale is banned apart from registered cottage food vendors |
| You want to ship to customers or deliver with a courier | Online orders must be delivered by you, an employee, or a household member |
Most growing food businesses rent time in a shared kitchen before they build one. Our guide to commissary kitchens covers what they cost and what they ask of tenants. DSHS says a Texas firm that makes or packages food for wholesale or retail sale needs a food manufacturer license, and that includes a firm whose name goes on a product a co-packer makes.
Once you’re in a licensed kitchen, delivery opens up. We run scheduled and same-day courier routes for bakeries and food brands across Texas, including a courier service in Houston, Dallas, Austin, and San Antonio. Multi-stop routes carry a morning’s orders to many addresses, every stop has live tracking and a photo at drop-off, and our bakery delivery service covers wholesale runs to cafés and custom cake orders. To price a route from your kitchen, enter two addresses in the delivery cost calculator.
Frequently Asked Questions
What is the cottage food limit in Texas?
$150,000 in annual gross income from cottage food sales, raised from $50,000 by SB 541. The bill has DSHS adjust the figure each year for inflation (SB 541).
Do I need a permit to sell baked goods from home in Texas?
No local permit. Cities and counties can’t require one or charge a fee. You do need food handler training, and you must register with DSHS if you sell foods that need refrigeration, such as cheesecake (DSHS).
Can I sell cottage food to a coffee shop or store in Texas?
Yes, if the shop registers with DSHS as a cottage food vendor and has a contract with you. Only foods that don’t need refrigeration can be sold this way.
Can I ship cottage food in Texas?
No. Online orders must be delivered in person by you, your employee, or a member of your household, which rules out shipping by mail or parcel carrier.
Can I sell cheesecake under Texas cottage food law?
Yes, after you register with DSHS. Cheesecake is a TCS food, so its label needs the date made and the safe handling statement, and it can’t be sold through a cottage food vendor.
What does a Texas cottage food label need to say?
Your operation’s name, your address or registration number, the product name, major allergens, and “THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.” Pickled and fermented foods also need a batch number.
The Bottom Line
Since SB 541, Texas cottage food law offers a $150,000 cap, no local permits, perishable foods with registration, and a legal way to sell through shops. The firm limits are meat, seafood, ice cream, low-acid canned goods, wholesale, and delivery. Online orders have to be delivered by you, your staff, or your household. When that rule or the cap starts to hold you back, a licensed kitchen removes both, and a courier can take over the driving. To see what a route from a kitchen would cost, use the delivery cost calculator.