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Texas cottage food law: what you can sell from home in 2026

Last reviewed Sep 25, 2026Official source: Texas DSHS – Texas Cottage Food Production
ANNUAL SALES LIMIT$150,000Gross income, adjusted yearly for inflation
PERMIT OR REGISTRATIONOnly for TCS foodsFoods that need refrigeration
SELL ONLINE / SHIPOnline yes, shipping noAllowed only with personal delivery by the operator, an employee or a household member.
FOOD HANDLER TRAININGRequiredComplete a food handler course

What you can sell

AllowedNon-TCS foods such as cakes, cookies, cupcakes, breads, pies, candy and other baked goods, plus TCS foods when the operation is registered with DSHS.
Not allowedMeat and poultry, seafood, ice, low-acid canned foods, CBD/THC products, raw milk.

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  • Name of the cottage food operation
  • Physical address, or the DSHS unique ID if registered
  • Common name of the product
  • Major food allergens
  • Required statement
  • Date the food was made (TCS foods only)
  • Safe handling instructions (TCS foods only)
Contains
Vanilla Buttercream CakeMade by: Your business name · address or registration no.Ingredients: Sugar, butter (cream, salt), enriched flour (wheat flour, niacin, iron, thiamine, riboflavin, folic acid), powdered sugar, eggs, whole milk, heavy cream, vanilla extract, baking powder, salt, sprinklesContains: Milk, Eggs, WheatTHIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.Made with BakerTab · bakertab.com
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PNG at 300 dpi for a 4" × 3⅓" label. On Baker, labels build from your recipes and update when ingredients change.Label for Texas

Permits & registration

No permit or inspection for most cottage foods. Registration with DSHS is required only for TCS (time/temperature control for safety) foods and for cottage food vendors. Rules effective Sep 1, 2025 (SB 541).

You also need to complete a food handler course.

Selling online and delivering

Allowed only with personal delivery by the operator, an employee or a household member. No shipping or mail order. Label information must be shown online before payment.

Sales tax

Bakery items (cakes, cookies, cupcakes, pies, bread, muffins, etc.) sold by a non-bakery are not taxable unless sold with eating utensils or heated. State rate 6.25%, up to 8.25% combined with local tax.

Stay under the Texas sales limit

Texas caps cottage food sales at $150,000 a year. BakerTab adds up every order and warns you at 80% of the limit.

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FAQ

How much can a Texas cottage food business sell per year?

Up to $150,000 in annual gross income from food sales. DSHS adjusts the limit for inflation each year.

Do I need a permit to sell baked goods from home in Texas?

Most baked goods need no permit. You must complete an accredited food handler course, and you must register with DSHS if you sell TCS foods or operate as a cottage food vendor.

Can I ship cottage foods in Texas?

No. You can sell online, but delivery must be made in person by you, an employee or a household member. Shipping and mail order are not allowed.

Do I charge sales tax on cakes and cookies in Texas?

Bakery items sold by a non-bakery are not taxable unless they are sold with eating utensils or heated.

Sources

Last reviewed Sep 25, 2026 against the official sources above. Guides summarize state rules and are not legal advice. Check with your state before you sell.

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