Texas Cottage Food Law Expands: What Home Bakers and Food Entrepreneurs Need to Know About SB 541
The Texas Cottage Food Law is about to get its biggest update since it was first passed in 2011. Thanks to the passage of SB 541 during the 2025 legislative session, Texas home food producers will soon have more freedom to sell a wider range of goods—and more clarity about how and where they can legally operate.
A Major Win for Home-Based Food Businesses
The law, which takes effect September 1, 2025, was championed by grassroots organizations and small-business advocates who have long fought for fairer rules for home-based cooks, bakers, and food artisans. Under SB 541, the definition of what qualifies as a cottage food has significantly expanded, opening doors for thousands of Texans looking to turn a culinary passion into a legitimate source of income.
Until now, Texas' cottage food law limited producers to low-risk foods like baked goods, jams, and dry mixes. That list will dramatically broaden later this year.
As of September 1, nearly any food may be sold directly to consumers except for the following categories:
- Meat and poultry (excluding eggs)
- Seafood and fish products
- Ice and frozen desserts like popsicles or gelato
- Low-acid canned goods
- Products containing CBD or THC
- Raw milk and raw milk products
This broad allowance includes foods that require refrigeration—also known as Time and Temperature Control for Safety (TCS) foods—though these will come with added responsibilities.
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Registration and Safe Handling for Perishable Foods
For the first time, TCS foods like cold pasta salads, cream pies, or fresh salsas will be permitted under cottage food law. However, producers will be required to register with the Texas Department of State Health Services (DSHS) and follow strict labeling and handling guidelines to ensure food safety.
Labels on these products must include the date the food was made and the statement: “SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption.”
The food must also be stored and delivered at safe temperatures, and it can only be sold directly to consumers—not through retailers or restaurants.
Selling Through Third-Party Vendors Now Possible
For the first time, non-perishable foods—like cookies, spice blends, or granola—may be sold through third-party “cottage food vendors” at retail locations including farmers markets, restaurants, and grocery stores. While the producer does not need to register, the vendor must, and must display a sign stating: “THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”
Additionally, producers can now register with DSHS to use a unique ID number in place of their home address on product labels, improving privacy while maintaining traceability.
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More Money, More Freedom, and More Clarity
SB 541 also triples the annual gross sales cap for cottage food producers—from $50,000 to $150,000—and pegs future increases to inflation. That’s a game-changer for many small producers looking to scale sustainably without jumping immediately into costly commercial kitchens.
Importantly, the law also confirms that no local government may require a permit, license, or fee for someone producing and selling food legally under the cottage food law. It even includes disciplinary language for local health departments that attempt to impose such restrictions unlawfully.
Other clarifications in the new law include:
- Sampling: No additional permits or fees required. Rules mirror those for farmers markets and must ensure sanitary conditions.
- Food Donations: Cottage food producers may now donate non-perishable items to charitable or religious events like bake sales.
- Labeling Requirements: Production dates are only required on foods sold through third-party vendors or those requiring refrigeration.
A Long Time Coming
These changes are the result of years of advocacy by organizations like the Farm and Ranch Freedom Alliance, along with countless home bakers and food crafters across the state. Their persistent work helped bring greater freedom, clarity, and economic opportunity to Texans who sell food from home.
For aspiring food entrepreneurs in Texas, the passing of SB 541 marks a new era of possibility—one that balances public safety with entrepreneurial freedom.
As DSHS begins writing the rules for registration processes in the coming months, Texans interested in starting or expanding a cottage food business should stay tuned for updates.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
