Texas Cottage Food Law: What Home Bakers Are Actually Allowed to Do
You've heard ten different answers from Facebook groups, local officials, and market organizers. Most are wrong. Here's what the law actually says—based directly on Texas DSHS guidance—so you can sell with confidence.
What Is a Cottage Food Production Operation?
You are a Cottage Food Production Operation (CFPO) if you:
- Prepare food in a home kitchen
- Sell directly to consumers (or to registered cottage food vendors)
- Earn $150,000 or less per year in gross sales
This applies to individuals and nonprofits. Local health departments cannot require a permit, license, inspection, or fee just for operating as a cottage food producer. That's state law.
What Foods Are Allowed
Texas now allows almost all foods, with specific exceptions. You can sell:
TCS foods (Time and Temperature Control for Safety) are now allowed under SB 541—but require DSHS registration, temperature control, and additional labeling.
What Foods Are NOT Allowed
These categories are never allowed under cottage food law:
Labeling Requirements
Every product must be packaged and labeled. Each label must include:
- 1Name of your cottage food operation
- 2Your address or DSHS registration number
- 3Common name of the product
- 4Major allergens (eggs, milk, wheat, peanuts, tree nuts, soy, sesame)
- 5The required disclaimer statement (exact wording)
Required Statement (no alterations allowed):
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
If this sentence is missing or altered, your label is not compliant.
Where You Can Sell
In-person sales
Farmers markets, roadside stands, your home, fairs, festivals
Online sales
Allowed if you or a household member personally delivers. Shipping is not allowed.
Wholesale (non-TCS only)
To registered cottage food vendors at markets, farm stands, or retail stores
Do You Need a License or Permit?
For most bakers: No license or permit required.
You must complete food handler training (keep your certificate available). Registration with DSHS is only required if:
- You sell TCS foods
- You're a cottage food vendor reselling others' products
- You want to use a DSHS number instead of your home address on labels
If none apply, registration is optional. Local officials who try to force permits are acting outside the law.
Common Mistakes That Get Bakers in Trouble
Missing or altered disclaimer
The required statement must appear exactly as written. No paraphrasing.
Shipping products
Online sales are allowed, but you must deliver in person. UPS, FedEx, USPS—not allowed.
Missing allergen information
All major allergens must be listed. This is a health and legal requirement.
Selling prohibited items
Items with meat, dairy-based fillings that need refrigeration, or CBD are never allowed.
Paying for unnecessary permits
Local health departments cannot charge you for cottage food operations. Know your rights.
How Crumb Coach Helps You Stay Compliant
Crumb Coach was built specifically for cottage food bakers. We help you:
Generate compliant labels
Auto-includes required disclaimer, allergens, and your info
Track your sales
Stay under the $150K limit with real-time revenue tracking
Check product compliance
Built-in rules flag products that may not qualify
Accept orders legally
Online storefront with local delivery—no shipping