Cottage Food Guide for Texas (2026)
By Hobby Stall Team · June 12, 2026 · 9 min read
Texas has one of the most permissive cottage food laws in the country, and as of September 1, 2025 it got more permissive. Senate Bill 541 swapped the old short list of allowed foods for an exclusion model: almost any homemade food is fair game unless it appears on a short prohibited list. The annual income cap moved up to $150,000 (indexed to inflation), local health departments can't charge cottage food permit fees, and the operation can be an individual or a qualifying nonprofit. Here's what that looks like in practice for a Texas home baker, candy maker, jam canner, or micro-roaster.
What is a cottage food production operation in Texas?
Under Texas Health and Safety Code Chapter 437, as amended by SB 541 (89th Legislature, Regular Session), a cottage food production operation (CFPO) is an individual operating out of the individual's home, or a nonprofit organization operating out of the home of one of its directors or officers, that produces eligible foods and stays under the $150,000 annual gross-income cap. The Texas Department of State Health Services (DSHS) maintains the official program page at dshs.texas.gov.
A few structural points worth keeping straight:
- The cap is gross income, not profit, and DSHS adjusts it annually for inflation using the CPI-U.
- The producer has to be an individual (or qualifying nonprofit). Operating through an LLC or S-corp does not fit the statutory definition. Sellers who already formed an entity should talk to a Texas attorney about how to reconcile that with the law.
- Local health authorities are preempted from regulating cottage food production or charging permit fees for it. That is a meaningful change from the patchwork that existed before SB 541.
What you can sell from a Texas home kitchen
SB 541 moved Texas to an exclusion-based model. The DSHS page states that allowable foods "now include any foods, except for" a specific list of categories. If a food isn't on that exclusion list and isn't a time and temperature control for safety (TCS) food, you can produce it.
Allowed (illustrative, not a closed list)
- Baked goods that don't require refrigeration (breads, cookies, brownies, non-cream pies)
- Candies, confections, chocolate, brittle, fudge
- Jams, jellies, fruit butters, fruit preserves
- Dry mixes, granola, popcorn, kettle corn
- Dried herbs and spice blends
- Dehydrated fruits and vegetables
- Pickled and fermented vegetables produced under proper acidification (pH at or below 4.6 is the usual safety threshold for shelf-stable acidified foods)
- Vinegars and vinegar-based hot sauces
- Roasted coffee beans, ground coffee, and dry tea blends (see the coffee section below for the caveat)
Excluded (the SB 541 list)
| Category | Notes |
|---|---|
| Meat, meat products, poultry, poultry products | Fully excluded |
| Seafood, including fish and shellfish products | Fully excluded |
| Ice and ice products (shaved ice, ice cream, frozen custard, popsicles, gelato) | Fully excluded |
| Low-acid canned goods | Needs a licensed facility and process authority review |
| Products containing cannabidiol (CBD) or tetrahydrocannabinol (THC) | Fully excluded |
| Raw milk and raw milk products | Fully excluded |
Source: Texas DSHS Cottage Food Production, tracking the SB 541 amendments to Health and Safety Code Chapter 437.
TCS foods are allowed, but with strings
SB 541 opened the door to some time and temperature control for safety (TCS) foods under cottage food, which is new. A TCS food is one that needs refrigeration or temperature control to prevent the growth of pathogens. If you make a TCS cottage food, you have to register with DSHS first, your label needs safe-handling instructions and a temperature requirement, and you have to include the date the food was made. The bill does not turn Texas into a pure food-freedom state for perishables. It carves out a narrow path with added documentation.
If you're not sure whether a recipe counts as TCS, ask DSHS in writing before you sell. Cream fillings, custards, cheesecakes, and any product with significant moisture plus protein are the usual flags.
Registration, training, and costs
Registration
For most non-TCS cottage food (cookies, jams, candy, coffee, dry mixes), no DSHS registration is required, and no local permit fees can be charged. SB 541 preempts that.
Registration becomes mandatory in two situations:
- You produce TCS cottage foods. Register before you sell.
- You want to use a DSHS-issued unique identification number on your label in place of your home address. Many sellers will want this for privacy reasons.
Registration is handled through the DSHS Regulatory Services portal at vo.ras.dshs.state.tx.us. Cottage food vendors (the resellers that SB 541 newly authorized for wholesale of non-TCS cottage foods) also register through this system.
Food handler training
DSHS states that an individual operating a CFPO must complete a basic food safety education or training program for food handlers accredited under Health and Safety Code Chapter 438, Subchapter D. A list of accredited programs lives on the DSHS food handler training page. Courses run roughly $7 to $15 online and typically take an hour or two. This is a food handler course, not the longer Certified Food Protection Manager (CFPM) credential that restaurants use. A CFPM certificate also satisfies the requirement if you already hold one.
At-a-glance setup costs
| Item | Cost |
|---|---|
| Local permit or license for cottage food production | $0 (preempted by SB 541) |
| DSHS registration (if producing TCS foods or using a DSHS ID number) | Check current fee on the DSHS portal |
| Food handler training (online, accredited) | ~$7-$15 |
| Label design and printing | Varies |
| Total first-year compliance for typical non-TCS sellers | Usually under $50 |
The numbers above reflect DSHS guidance as of June 2026 and the SB 541 text. Check the official pages before launching, since DSHS adjusts the income cap annually.
Labeling: the exact checklist
Texas's label rules are short, and the disclosure statement has to appear verbatim. The DSHS page and the bill text both quote it the same way. Every package of cottage food sold in Texas needs:
- Name and address of the cottage food production operation, or in lieu of the address, a DSHS-issued unique identification number if you've registered for one.
- The disclosure statement, in all capital letters:
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
- For TCS foods only: safe handling instructions, the required holding temperature, and the date the food was made.
Federal allergen labeling under the Food Allergen Labeling and Consumer Protection Act sits on top of state law. If your product contains any of the Big-9 allergens (milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soybeans, sesame), declare them either inline or in a "Contains:" statement. Common practice is also to list ingredients in descending order by weight, which the FDA requires for packaged foods.
Cottage food vendors (the new SB 541 resale channel) have to post a sign with the same disclosure language at the point of sale.
Where you can sell
| Sales channel | Allowed? |
|---|---|
| Direct sale from the home | Yes |
| Farmers markets and farm stands | Yes |
| Fairs, festivals, and events | Yes |
| Online sales to Texas buyers, with personal delivery by operator, employee, or household member | Yes |
| Online sales shipped by UPS, USPS, or other common carrier | No (statute requires personal delivery) |
| Wholesale to registered cottage food vendors (non-TCS foods only) | Yes (new under SB 541) |
| Direct sale to retail food establishments and restaurants for resale | Limited; check the DSHS page and the statute for the specific conditions added by SB 541 |
| Out-of-state shipping | No (interstate commerce is FDA-regulated) |
| Sampling at any location | Yes |
| Donating non-TCS cottage foods to events | Yes (added by SB 541) |
The online-sales rule trips a lot of sellers. SB 541 expanded what you can sell, but it kept a hard requirement that the operator, an employee, or a household member personally delivers food sold over the internet. A common carrier won't satisfy the statute as written. Required label information also has to reach the buyer before they pay (a product page or pre-purchase email both qualify in practice).
This is exactly where a local pickup-first storefront fits. Hobby Stall is built around drops and preorders with Venmo or Cash App handoff at pickup, which lines up with the personal-delivery requirement.
Can you sell home-roasted coffee in Texas?
Short answer: yes, with the usual caveat that the statute doesn't name coffee.
The post-SB 541 framework allows any food not on the exclusion list. Roasted coffee beans and ground coffee are low-moisture, shelf-stable, and not TCS foods. They fit the general profile of allowed dry goods. DSHS's exclusion list doesn't mention coffee.
What is not covered:
- Brewed coffee, cold brew, canned or bottled ready-to-drink coffee. These are food-service products. You need a retail food establishment permit and an approved facility.
- Wholesale to cafés or grocery stores under their own "approved source" rules. SB 541 added a cottage food vendor resale channel, but cafés sourcing ingredients for prepared menu items still look to approved-source rules.
- Shipping coffee out of state. That's interstate commerce. Cottage food exemptions don't reach it.
One hedge worth flagging: because coffee isn't named in the statute or on the DSHS page, the conclusion sits on the general "any non-excluded, non-TCS food" framing rather than an explicit statutory call-out. If you plan to sell flavored coffees with added oils or syrups, or you want to scale past hobby volumes, confirm with DSHS in writing first. The Illinois version of this guide (cottage food guide for Illinois) has the same general posture.
Recent changes to Texas cottage food law
- 2011 - Original Texas Cottage Food Law passed: a short list of non-hazardous foods, direct-to-consumer only.
- 2013 - Significant expansion: more allowed foods, sales beyond the home, and the home-kitchen disclosure on labels.
- 2019 - Further expansion of allowed foods and venues.
- September 1, 2025 - SB 541 takes effect. The law flips to an exclusion model. The cap rises to $150,000 indexed to inflation. Nonprofits become eligible. Local governments are preempted from charging permit fees. A registration step is added for TCS cottage foods and for sellers who want to use a DSHS ID number instead of a home address. A new wholesale channel through registered "cottage food vendors" opens for non-TCS foods.
Official Texas resources
| Source | What it covers | Link |
|---|---|---|
| Texas Department of State Health Services (DSHS), Cottage Food Production | Allowable foods, exclusions, labeling, registration, training | dshs.texas.gov |
| Texas Health and Safety Code, Chapter 437 | Full statute governing food service and cottage food operations | statutes.capitol.texas.gov |
| SB 541, 89th Legislature, Regular Session | The 2025 amendment, bill history, and votes | capitol.texas.gov |
| SB 541 enrolled text | Verbatim bill text as enacted | capitol.texas.gov bill text |
| DSHS Regulatory Services Online portal | Cottage food registration | vo.ras.dshs.state.tx.us |
| DSHS accredited food handler training programs | List of accepted training providers | dshs.texas.gov |
For the side-by-side picture of how Texas stacks up against other states, see Hobby Stall's cottage food laws hub and the cottage food resource page.
This guide is general information, not legal advice. Texas DSHS adjusts the income cap annually, and local interpretation still varies on edge cases like flavored coffees and specialty acidified foods. Confirm with DSHS before you scale. Once your label and training are squared away, start a Hobby Stall shop and run your drops with Venmo or Cash App at pickup.
Frequently asked questions
- What changed in Texas cottage food law on September 1, 2025?
- Senate Bill 541 (89th Legislature) took effect September 1, 2025. It flipped the law from a short list of allowed foods to an exclusion-based model where almost any homemade food is allowed unless it appears on a short prohibited list. SB 541 also raised the annual gross-income limit to $150,000 (indexed to inflation), preempted local permit fees for cottage food producers, and added a registration step for operators who sell time and temperature control for safety foods or who want to put a DSHS identification number on the label instead of a home address.
- Is there a sales cap for Texas cottage food producers?
- Yes. The annual gross income cap is $150,000 under the post-SB 541 version of Texas Health and Safety Code Chapter 437. The Texas Department of State Health Services adjusts the figure each year using the Consumer Price Index for All Urban Consumers, so the operative number can drift upward over time. If your operation exceeds the cap, you fall outside the cottage food exemption and need a retail food establishment permit.
- Can an LLC or corporation run a Texas cottage food operation?
- The statute defines a cottage food production operation as an individual operating out of the individual's home or, after SB 541, a nonprofit organization operating out of the home of one of its directors or officers. For-profit entities such as LLCs and S-corporations do not fit the definition. If you have formed an entity for liability reasons, talk to a Texas business lawyer about whether the entity itself can be the producer or whether you need to operate as a sole proprietor.
- Do I need a permit, license, or inspection in Texas?
- No permit, no license, and no routine inspection for the cottage food production itself. SB 541 explicitly prevents local health authorities from regulating production at a cottage food operation or charging permit fees. You still need to complete an accredited food handler training, follow the labeling rules in statute, and (starting September 1, 2025) register with DSHS if you produce time and temperature control for safety foods or want to use a DSHS identification number on labels instead of your home address.
- What exactly has to go on a Texas cottage food label?
- Per Texas Health and Safety Code Chapter 437 as amended by SB 541, the label needs the operation's name and address (or a DSHS-issued unique identification number in place of the address), and the disclosure statement in all caps: THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. For TCS foods you also need safe handling instructions, temperature requirements, and the date the food was made. Federal allergen disclosure under the Food Allergen Labeling and Consumer Protection Act applies on top of state rules.
- Can I sell my Texas cottage food online and ship it?
- You can sell online to Texas buyers, but the statute requires that the operator, an employee, or a household member personally deliver the food to the consumer. That language rules out using a common carrier like UPS or USPS for the handoff. Required label information must also be provided to the buyer before they pay. Selling across state lines is outside the cottage food exemption entirely because interstate food commerce is regulated by the FDA.
- What about home-roasted coffee in Texas?
- The post-SB 541 framework allows any food not on the exclusion list, and roasted coffee beans (whole or ground) are shelf-stable, low-moisture, and not time and temperature control for safety foods. The DSHS page does not name coffee directly, so the conclusion rests on the general non-TCS framing rather than an explicit statutory mention. Brewed coffee, cold brew, and bottled ready-to-drink coffee are food-service products and fall outside cottage food. Confirm any flavored or specialty blends with DSHS before scaling.