Texas cottage food law
Texas cottage food bakers: Sell legally under SB 541
Texas SB 541 expanded the Texas Cottage Food Law in 2019 and again in 2023. The law now allows up to $150,000 in annual gross sales of cottage foods sold directly to consumers (CPI-indexed annually starting 2026) — with specific labeling, allergen, and food-category rules that you have to get right. CottageOps generates SB 541-compliant labels automatically and tracks your rolling 12-month revenue against the cap.
What the Texas Cottage Food Law actually says
Texas SB 541 governs what Texans call "cottage food production operations" — home-based food sellers who don't operate out of a licensed commercial kitchen. The law lives in Texas Health and Safety Code Chapter 437 and was substantially expanded by Senate Bill 541 in 2019, with further expansion in 2023 to cover certain pickled and fermented foods. The expansion brought the revenue cap up to $150,000 per year (2025; CPI-indexed annually starting 2026) and broadened the list of allowable foods well beyond the bakery-and-jam baseline.
Under SB 541, cottage food operators in Texas can sell baked goods, candy, dried mixes, jams and jellies, fermented vegetables and pickles (with pH testing requirements), roasted coffee, dried herbs, and a number of other low-risk food categories — provided they sell directly to consumers (no wholesale to grocery stores or restaurants), label every product correctly, and stay under the revenue cap.
Texas SB 541 at a glance
- Revenue cap
- $150,000 per year, gross sales (2025; CPI-indexed annually starting 2026)
- Where you can sell
- Direct to Texas consumers — farmers markets, festivals, pickup, in-state delivery, online sales to in-state customers
- Where you cannot sell
- Wholesale to grocery stores, restaurants, or institutions
- License required
- No state license; food handler training required for the operator
- Inspection
- Not inspected by the Texas Department of State Health Services (mandatory disclosure on label)
- Allowable foods
- Baked goods that don't require refrigeration, candy, dry mixes, granola, popcorn, jams and jellies, fermented and pickled foods (with pH testing), roasted coffee, dried herbs and tea blends
- Not allowable
- Anything requiring time/temperature control (TCS) — meat, dairy, cooked vegetables in cream — outside specific exemptions
What CottageOps does for Texas bakers
When you sign up and select Texas as your state, CottageOps configures itself for SB 541 specifically:
- ALL CAPS allergen warnings. SB 541 requires the allergen statement on the label to be in all capital letters. Our PDF label generator preserves the casing through render — every label, every product, every time.
- "NOT INSPECTED" disclosure. Every Texas cottage food label requires a mandatory disclosure that the product was made in a home kitchen and is not inspected by the Texas Department of State Health Services. We add it automatically.
- $150K rolling 12-month tracking. As your orders come in, CottageOps tallies your gross sales against the cap. At 75% ($112,500), 90% ($135,000), and 100% you'll see clear warnings on your dashboard so you can decide whether to slow down or transition to a commercial license.
- Allergen disclosure enforcement. When you create a product, the platform asks you to declare allergens. If you skip it, the product won't publish — because under SB 541 missing allergens is a labeling violation.
Watch out for
- The 2023 TCS expansion. SB 541 in 2023 expanded coverage to certain pickled and fermented foods that were previously prohibited — but only if you can document pH below 4.6. If you sell pickles or fermented vegetables, you need pH test results on file. CottageOps doesn't test pH for you, but our product setup wizard reminds you to keep documentation.
- In-state sales only. SB 541 governs sales TO Texas consumers. If a customer in Oklahoma orders your peanut brittle, that crosses into federal interstate commerce and SB 541 doesn't cover it. Our shipping flow defaults to in-state-only for Texas operators; you'll see a warning if you try to widen the radius.
- The $150K cap is gross, not net. Cost of ingredients does NOT subtract from the cap. If you gross $151,000 in a 12-month rolling window, you've crossed the line — even if your profit was much lower. Track gross.
- Farmers market booth allergen signage. SB 541 requires allergen disclosure on labels AND requires you to be able to communicate allergens at point of sale. CottageOps prints labels but you also need a printed allergen card at your booth.
Ready to sell legally in Texas?
CottageOps configures itself for Texas SB 541 the moment you sign up. Per-state-correct labels, $150K cap tracking, ALL CAPS allergen rendering, and the "NOT INSPECTED" disclosure all included. $19/month flat. No transaction fees. 30 days free.
Start your 30-day free trialTexas cottage food FAQ
Do I need a license to sell cottage food in Texas?
No state license is required under SB 541, but you must complete a food handler training course (a one-time $7-15 online course, certified by the Texas Department of State Health Services). Some cities and counties have additional permit requirements — check with your local health department.
Can I sell my Texas cottage food online?
Yes, to Texas consumers, including via direct online sales, pickup, and in-state delivery. SB 541 does not require in-person handoff. CottageOps handles online orders, pickup scheduling, and delivery in one storefront.
Can I sell to a Texas grocery store or restaurant?
No. SB 541 limits cottage food to direct-to-consumer sales. If a grocery store wants to carry your product, you need a commercial kitchen and the appropriate license. CottageOps focuses on direct sales; we don't have a wholesale module yet.
What's TCS and why does it matter?
Time/Temperature Control for Safety. Foods that require refrigeration to stay safe (meat, dairy, cream-based fillings) are mostly excluded from cottage food in Texas — with specific exceptions in the 2023 SB 541 expansion for documented-pH-below-4.6 pickles and fermented foods. If you don't know whether your product is TCS, our product setup wizard will flag it.
What happens if I cross $150K?
You're no longer covered by SB 541 for orders past the cap. You'd need to either stop selling (wait for the rolling 12-month window to drop below $150K) or transition to a commercial kitchen with a Texas Food Establishment Permit. CottageOps warns you at 75% and 90% so you have time to plan, not panic.
Does CottageOps handle sales tax for Texas?
Texas requires sales tax collection on most cottage food sales. CottageOps tracks the data; tax filing is on you (or your accountant). We export a clean monthly summary you can hand to a CPA.
Selling in another state? Read our state-specific guides:
Try CottageOps free for 30 days.
Texas SB 541 compliance, $150K cap tracking, and ALL CAPS allergen rendering — built in from day one. Cancel anytime; the most-recent month is refundable.
Start your 30-day free trialLast verified: 2026-05-09. Not legal advice — confirm cottage-food requirements with the Texas Department of State Health Services.