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.
Selling and Labeling – What You Need to Know
Along with expanding what can be produced and increasing income potential, the updated law also introduces new flexibility in where and how cottage food products can be sold. Producers can now:
- Sell their goods directly to consumers at farmers markets, roadside stands, and special events
- Sell online with local delivery or customer pick-up
- Offer samples at retail locations and events
- Sell certain products wholesale to other cottage food vendors, including stores and restaurants (subject to restrictions)
This change enables broader reach and marketing strategies, allowing producers to build customer bases beyond immediate neighbors or local acquaintances.
In terms of compliance, the updated law also provides clearer labeling requirements. Each product must include:
- The name and physical address of the cottage food operation
- A statement that the food is made in a home kitchen not subject to regular state inspection
- A list of major allergens
- For perishable products, a label with the production date and instructions to “keep refrigerated” or follow safe storage guidance
For time/temperature control (TCS) foods, the law now requires producers to register with the Texas Department of State Health Services (DSHS) and complete an approved food safety training course. This ensures both consumer safety and accountability from producers offering higher-risk products.
It’s also important to note what is still prohibited. Despite the law’s expansion, cottage food operations may not produce or sell:
- Raw milk or raw dairy products
- Any item containing meat or seafood (unless freeze-dried and approved)
- Low-acid canned goods like green beans or corn
- Alcohol-infused foods
- Products containing CBD, THC, or other cannabis-derived ingredients
Maintaining clear boundaries between allowed and prohibited products is essential for legal compliance and public health.
Getting Started – Your Step-by-Step Roadmap
For Austin County residents interested in launching a cottage food business, the process is more accessible than ever. Starting requires several straightforward steps:
- Complete a Food Handler’s Course: A basic food safety training course approved by the Texas Department of State Health Services is mandatory. Courses are available online and cost around $10 to $20.
- Understand Permitted Foods: Familiarize yourself with the list of allowed and prohibited products. When in doubt, consult the latest guidance from DSHS or a local health department.
- Label Your Products: Ensure all labels meet state requirements, especially for TCS items which require additional disclosures.
- Register with the State (if applicable): If you intend to sell refrigerated or other temperature-sensitive foods, you must register with DSHS before selling.
- Plan Your Sales Channels: Decide whether you’ll sell at farmers markets, directly from home, or online. Each method has its own logistical considerations and may require additional local permits.
- Maintain Accurate Records: Though cottage food operations are not routinely inspected, maintaining documentation—like sales records, ingredient sourcing, and batch tracking—can protect your business in the event of a consumer complaint.
Resources for assistance include the DSHS website, small business development centers (like the one at Blinn College), and local economic development organizations. Online groups like Homemade Texas also provide peer support and advocacy updates. The revised law aims to encourage homegrown entrepreneurship and bring unique food offerings to communities. Whether someone is supplementing household income, testing a market concept, or working toward a future storefront, the updated cottage food law makes it easier for local individuals to begin their journey. With fewer barriers and greater flexibility, now is a strong time for Austin County residents to consider whether their kitchen talents could turn into a business opportunity.
