What is a Cottage Food Vendor and what has changed?

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 Starting September 1, 2025, a significant update to Texas’ Cottage Food Law will take effect, offering broader opportunities for aspiring food entrepreneurs to legally operate home-based businesses. The revisions—enabled through Senate Bill 541—open new avenues for small-scale producers by expanding product allowances, raising income thresholds, and simplifying regulations. For residents in Austin County and surrounding areas looking to turn homemade food skills into a viable business, this legislation provides a clearer and more supportive framework.

The cottage food industry refers to the preparation and sale of certain types of food made in home kitchens that are not subject to routine state health inspections. First introduced in Texas in 2011, these laws have allowed countless individuals to build businesses from their homes, many of which have grown into successful companies. With the latest update, the state aims to support this entrepreneurial spirit by expanding what’s legally allowed under the cottage food umbrella.

Under the new law, the types of foods that can be produced and sold from a home kitchen have significantly increased. Previously, only non-perishable baked goods, candies, jams, and similar items were permitted. Now, the expanded list includes:

• Refrigerated baked goods (like cream pies or cheesecakes)
• Fermented vegetables (e.g., kimchi or sauerkraut)
• Certain dried or dehydrated foods
• Pickled vegetables
• Frozen raw fruits and vegetables
• Homemade pasta
• Honeycomb products
• Some nut butters
• Custom cakes and cupcakes with potentially hazardous fillings or frostings (as long as safety guidelines are followed)

These additions must meet specific food safety and labeling requirements, and any product requiring refrigeration or time/temperature control (TCS) must be prepared in compliance with clearly outlined rules.

The annual gross income cap for a cottage food business has also increased from $50,000 to $150,000. This new cap will be adjusted yearly to keep pace with inflation, based on the Consumer Price Index. For many home-based producers, this creates room for real business growth without needing to invest in a commercial kitchen or transition to a more heavily regulated business model.