Texas Cottage Food Law

Created by SB 541 (2025). A cottage food vendor is a person with a contractual relationship with the operation who sells its food directly to consumers on their behalf (§ 437.001(3)). A producer may sell at wholesale to such a vendor, who must register with DSHS and may then sell directly to consumers at a farmers' market, a farm stand, a food service establishment, or any retail store (§ 437.01965(a), (d)). TCS foods cannot be wholesaled. Wholesaled product must include the production date on the label, and the vendor must display a prominent sign at the point of sale reading "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." (§ 437.01965(b), (c)).

How much can I make under Texas cottage food law?

The current Texas cottage food annual gross-revenue cap is $150,000, raised from $50,000 by SB 541 effective September 1, 2025. The cap is measured against gross receipts from cottage food sales — not net profit — and § 437.001(2-b)(B) directs DSHS to adjust it annually for inflation using the Consumer Price Index for All Urban Consumers (CPI-U), so check the DSHS cottage food page for the current-year figure. Once your gross cottage food sales cross the cap in a calendar year, you must transition to a permitted commercial kitchen or stop selling under the cottage food exemption until the next calendar year.

Do I need a license or permit to sell cottage food in Texas?

No license or facility permit is required, but state law requires the operator to complete an accredited basic food safety course for food handlers (DSHS also accepts a Food Manager certification). As of September 2025, producers may voluntarily register with DSHS to receive a unique identification number that can replace the home address on product labels, and producers who sell time and temperature control for safety (TCS) foods must register. Cities, counties, and local health departments may not require a cottage food production operation to obtain any license or permit or pay any fee to produce or sell directly to a consumer or cottage food vendor (§ 437.0192).

Can I wholesale my cottage food to a retail store in Texas?

Yes — but only through a registered cottage food vendor. SB 541 (2025) created a new wholesale path: a cottage food production operation may sell at wholesale to a cottage food vendor, who must register with DSHS and may then sell directly to consumers at a farmers' market, a farm stand, a food service establishment, or any retail store. The vendor must also display a prominent sign at the point of sale carrying the same home-production disclosure that goes on the label, and wholesaled product must show the date the food was made. Time and temperature control for safety (TCS) foods cannot be wholesaled.

Can I sell hot sauce, pickles, or canned goods under Texas cottage food law?

Yes, with conditions. Before selling pickled fruit or vegetables, fermented vegetable products, or plant-based acidified canned goods, the operation must use a recipe from a DSHS-approved source, a recipe tested by a certified laboratory, or a recipe approved by a qualified process authority — or test every batch with a calibrated pH meter to confirm an equilibrium pH of 4.6 or less. Each batch must be labeled with a unique number, and records of the batch number, recipe, recipe source or test results, and preparation date must be kept for at least 12 months (§ 437.01951). Pickled cucumbers are exempt from these extra steps. Low-acid canned goods are not allowed.

Can I ship or mail Texas cottage food to my customer?

No — not across state lines, and not within Texas either. Cottage food sales are limited to Texas, and interstate shipping triggers federal jurisdiction (FDA), which does not recognize state cottage food exemptions. Within Texas, an internet order may be sold only if the operator, an employee, or a household member personally delivers the food to the consumer (Tex. Health & Safety Code § 437.0194(b)(1)) — USPS and common carriers are not a compliant delivery method. SB 541 (2025) struck the former "or by mail order" wording from § 437.0194(b), and neither the statute nor DSHS guidance affirmatively authorizes carrier shipment, so treat mail order as unavailable until DSHS says otherwise.

What goes on a Texas cottage food label?

A compliant label includes the name of the operation and either its physical address OR the unique identification number DSHS issues to registered operations, the product name, the full ingredient statement in descending order by weight, allergen disclosures for the major nine allergens, net weight or volume, and the disclosure: "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." SB 541 (2025) replaced the older "made in a home kitchen" wording with this statement effective September 1, 2025. Pickled fruit or vegetables, fermented vegetable products, and plant-based acidified canned goods must also carry a unique batch number. Wholesaled product must additionally include the production date, and refrigerated/TCS products must add the production date plus a 12-point safe-handling statement.