Vermont cottage food law
Vermont cottage food bakers: Sell legally under Act 42
Vermont's brand-new Act 42 (HB 401, effective January 1, 2026) opened a home-bakery / cottage-food path in Vermont for the first time. The path is purposely narrow: shelf-stable products only, a $30,000 annual revenue cap, and an annual self-certification with the Vermont Department of Health (VT DOH) by January 15 each year — paired with free DOH-administered safe-food-handling training. CottageOps configures itself for Act 42 the moment you sign up.
What Vermont Act 42 actually says
Vermont's home-based food framework lives in Act 42 (2025; effective 2026-01-01), administered by the Vermont Department of Health. Act 42 is one of the newest cottage-food regimes in the country, and Vermont was one of the last states to formally authorise a home-bakery path. The law deliberately keeps the cottage-food regime narrow to ease enforcement during rollout: shelf-stable products only, a $30,000 annual revenue cap, and an annual self-certification with VT DOH every January 15.
VT DOH pairs the self-certification with free safe-food-handling training administered by the department — operators complete the training as part of the certification process. There's no inspection requirement and no per-product pre-approval (unlike Montana's cottage path).
Note: Vermont also has a separate licensed home food processor path for higher-revenue operators and broader product categories — that's a different regulatory regime CottageOps doesn't support in v1.0.9. Under Act 42, Vermont cottage food operators can sell shelf-stable baked goods, candy, jams and jellies, granola, dried mixes, and similar non-TCS products direct to consumers — within the $30K cap and with the mandatory verbatim disclosure on every label.
Vermont Act 42 at a glance
- Revenue cap
- $30,000 per year, gross sales (lowest cap among the 10 states CottageOps supports)
- Where you can sell
- Direct to Vermont consumers — farmers markets, festivals, pickup, in-state delivery, online sales to in-state customers
- Where you cannot sell
- Wholesale to grocery stores or restaurants; out-of-state shipping; broader product categories that require the separate licensed home food processor path
- Certification
- Annual self-certification with VT DOH by January 15; free DOH-administered safe-food-handling training completed as part of certification
- Inspection
- Not inspected by the Vermont Department of Health (mandatory disclosure on label)
- TCS foods
- Not allowed on the Act 42 path — shelf-stable products only
- Font requirement
- Disclosure at 10-point minimum on every label
Label requirements in Vermont
Vermont Act 42 mandates the following verbatim disclosure on every cottage food label: “Made in a home kitchen not inspected by the Vermont Department of Health” — rendered at 10-point minimum font on the label. CottageOps's label generator pins the disclosure text verbatim and renders it well above the 10-point minimum. Our generated labels also include product name, producer name and address, ingredients, Big-9 allergens, and net quantity.
What CottageOps does for Vermont bakers
When you sign up and select Vermont as your state, CottageOps configures itself for Act 42 specifically:
- $30K rolling 12-month tracking. As your orders come in, CottageOps tallies your gross sales against the cap. At 75% ($22,500), 90% ($27,000), and 100% you'll see clear warnings on your dashboard so you can decide whether to slow down or transition to the separate licensed home food processor path.
- Verbatim Act 42 disclosure. The VT-specific disclosure text is locked in; we render it on storefront listings, order confirmation emails, and every label PDF.
- TCS prohibition warning. Act 42 is shelf-stable only. If you mark a SKU as containing TCS ingredients, the product setup wizard surfaces a warning and blocks publish.
- Annual certification reminder. Act 42 requires self-certification with VT DOH by January 15 each year. CottageOps surfaces a dashboard reminder in the weeks leading up to the deadline so the certification doesn't lapse.
- 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 missing allergens is a labeling violation.
Who Vermont's law is for
The Vermont cottage food baker is typically a Burlington, Montpelier, Brattleboro, or rural-Vermont operator selling shelf-stable baked goods, jam, granola, or maple-adjacent confections at farmers markets and via in-state pickup. The $30K cap is the lowest of any state CottageOps supports — Act 42 is purposely designed for hobbyists and side-hustle bakers, not full-time scale. Operators who outgrow the cap transition to the separate licensed home food processor path.
Watch out for
- $30K cap is gross, not net. Cost of ingredients does NOT subtract from the cap. If you gross $30,001 in a 12-month rolling window, you've crossed the line — even if your profit was much lower. Track gross. CottageOps warns at 75% and 90% so you have time to plan.
- January 15 certification deadline. Miss the annual self-certification with VT DOH and your cottage path lapses. CottageOps surfaces a dashboard reminder in the weeks leading up to it; complete the DOH process directly with the department.
- Shelf-stable only. Cream-based pastries, custards, cheesecakes, and any other TCS items are blocked under Act 42. If you want to offer those, you need the separate licensed home food processor path — which CottageOps doesn't support in v1.0.9.
- Act 42 is brand-new. The law took effect January 1, 2026 and VT DOH may continue to publish implementing guidance during 2026. CottageOps tracks the rule-set and updates configuration when DOH publishes; check back periodically for any clarifications.
Ready to sell legally in Vermont?
CottageOps configures itself for Act 42 the moment you sign up. $30K rolling cap tracking, verbatim disclosure rendering, January 15 certification reminders, and TCS prohibition warnings all included. $19/mo in 2027 — free in 2026. No transaction fees.
Start selling in VermontVermont cottage food FAQ
Do I need a license to sell cottage food in Vermont?
No state license is required under Act 42, but you do need to complete the annual self-certification with the Vermont Department of Health by January 15 each year — including the free DOH-administered safe-food- handling training that’s part of the certification.
Can I sell cheesecake or cream-based pastries in Vermont?
Not on the Act 42 cottage path. Shelf-stable products only — cream fillings, custards, and any other TCS items require the separate licensed home food processor path, which CottageOps doesn’t support in v1.0.9.
What happens if I cross $30K in Vermont?
You’re no longer covered by Act 42 for orders past the cap. You’d need to either stop selling (wait for the rolling 12-month window to drop below $30K) or transition to the separate licensed home food processor path. CottageOps warns you at 75% and 90% so you have time to plan.
Can I ship my Vermont cottage food to a customer in another state?
Act 42 covers in-state direct-to-consumer sales. Out-of-state shipping crosses into federal interstate commerce and isn’t covered. CottageOps defaults Vermont operators to in-state-only delivery.
Can I sell to a Vermont grocery store or restaurant?
No. Act 42 limits cottage food to direct-to-consumer sales. Wholesale to grocery stores or restaurants requires the separate licensed home food processor path. CottageOps focuses on direct sales.
Does CottageOps handle sales tax for Vermont?
Vermont 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:
Free in 2026 — no card required.
Vermont Act 42 compliance, $30K cap tracking, verbatim disclosure rendering, January 15 certification reminders, and TCS prohibition warnings — built in from day one. Cancel anytime; the most-recent month is refundable.
Start selling in VermontLast verified: 2026-05-20. Research-grade information — not legal advice. Confirm cottage-food requirements with the Vermont Department of Health; consult a Vermont licensed attorney for legal questions (especially relevant given Act 42 took effect on January 1, 2026 and implementing guidance may continue to evolve).