California’s cottage food law lets you legally prepare and sell certain shelf-stable foods from your home kitchen, without renting a commercial space, once you register with your county environmental health department. You pick one of two tiers: Class A if you sell directly to buyers, or Class B if you also want your products on retail shelves. Both come with annual revenue caps, labeling rules, and a required food processor course.
Foods You Can and Can’t Sell
Only foods that don’t need refrigeration to stay safe qualify. The California Department of Public Health maintains the official approved list, and it centers on items with low risk of bacterial growth: breads, cookies, and biscuits without custard, cream, or meat fillings; dried fruits; nuts and nut butters; granola and cereal mixes; jams, jellies, and preserves; honey; candy; popcorn; dry baking mixes; and roasted coffee.
If a product needs to stay cold, it’s out. No fresh salads, no dairy-based sauces, nothing with raw eggs. The line can be thin. A fruit jam preserved with enough sugar and acid is fine; a fresh fruit compote that needs refrigeration is not. Check the current CDPH list before you buy ingredients.
Class A vs. Class B
Class A covers direct sales only: you hand the product to the buyer. That includes farmers’ markets, bake sales, holiday bazaars, community events, farm stands, and sales from your home.
Class B allows both direct and indirect sales. Indirect means selling to a third-party retailer, like a local grocery, café, or restaurant, which resells to consumers. If you want your granola on a neighborhood shop’s shelf, you need Class B.
The practical difference goes beyond channels. Class A operators self-certify that their kitchen meets health standards and generally avoid a pre-approval inspection. Class B operators must pass a physical kitchen inspection by the county before receiving a permit.
Revenue Caps for 2025
The statute sets base annual gross sales caps of $75,000 for Class A and $150,000 for Class B, adjusted each year for inflation using the California Consumer Price Index. As of January 1, 2025, the adjusted caps are $86,206 for Class A and $172,411 for Class B.1California Department of Public Health. Cottage Food Operation Adjusted Gross Annual Sales Limit CDPH publishes updated figures each year.
These are gross sales, not profit. Every dollar the customer pays counts toward the cap, regardless of what you spent on ingredients or packaging. Cross the limit and you’ll need to transition to a commercial food facility permit, which brings substantially more expense and oversight.
How to Register With Your County
Applications go through your local county environmental health department, not the state. Each county has its own form, fee schedule, and processing timeline, and Class A registrations typically cost less than Class B permits.
Before you apply, plan to take a food processor course approved by CDPH. Any ANSI-accredited food handler course satisfies the requirement, and these are available online for a minimal cost.2California Department of Public Health. Cottage Food Operator Training You must complete it within three months of receiving your registration or permit.3California Department of Public Health. Cottage Food Operations
Your application will also require documentation about your kitchen’s water source, draft labels for every product you plan to sell, and details about your ingredients and equipment. Well water usually means providing a water quality test. Municipal water usually means a recent utility bill showing the provider.
Class A Steps
Class A applicants fill out a registration form and complete a self-certification checklist confirming their kitchen meets state health standards. No inspector visits your home before approval. The county reviews your ingredient lists and label drafts, and if everything checks out, you receive a registration number. A complaint can trigger an inspection later.
Class B Steps
Class B applicants must schedule and pass a physical inspection of the home kitchen before the county issues a permit. The health department representative checks sanitation practices, food storage, equipment condition, and the general state of your production area. After approval, Class B operations are limited to no more than one routine inspection per year.4California Legislative Information. California Code HSC 114365 – Cottage Food Operations Both Class A and Class B permits must be renewed annually.3California Department of Public Health. Cottage Food Operations
What Your Labels Must Say
Every cottage food product you sell needs a label meeting specific state requirements. Include all of the following:
- The common or descriptive product name on the front panel.
- The exact phrase “Made in a Home Kitchen” on the front panel, in at least 12-point type.
- Your cottage food operation’s name, city, and zip code. If you’re not listed in a telephone directory, include a physical address.
- The permit or registration number issued by your county, along with the name of the local enforcement agency.
- Ingredients listed in descending order by weight, if the product has two or more ingredients.
- Net quantity in both English (pounds/ounces) and metric (grams) units.
- An allergen declaration in plain language if the product contains any of the eight major allergens: milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, or soybeans.
Nutrient content claims like “low fat” or “sugar-free,” and any health claims, pull you into FDA labeling rules and require a Nutrition Facts panel. Most cottage food operators simply avoid making those claims.5California Department of Public Health. Labeling Requirements for Cottage Food Products
Kitchen and Staffing Rules
A cottage food operation can have no more than one full-time equivalent employee beyond the operator. Family members and household members don’t count toward that cap, so a spouse or child can help without triggering the employee restriction.6The National Agricultural Law Center. California Health and Safety Code – Cottage Food Operation Definitions Delivery drivers also don’t count as employees under the statute.
During production hours, no pets or small children are allowed in the kitchen. Class B inspectors check this, and a consumer complaint about pets in the production area can trigger an inspection even for a Class A operation. Keep the production space separate from household activity while you’re working.
Selling Online, Shipping, and Out-of-State Sales
You can advertise your products online and take orders through a website or social media. Delivery is where things get murky. The statute doesn’t explicitly prohibit mailing products, but CDPH’s official position is that deliveries must be made in person, not through postal or shipping services.
All cottage food sales must happen within California. Shipping across state lines moves you into interstate commerce, which falls under federal FDA jurisdiction and outside the protections of the Cottage Food Act. Selling nationally requires a commercial food facility setup that complies with federal regulations.
Zoning, HOAs, Insurance, and Taxes
The Cottage Food Act doesn’t override local zoning. Your city or county may require a home occupation permit, and you’ll need to comply with any restrictions on traffic, noise, signage, or commercial activity in residential zones. Local governments generally cannot deny you a permit to operate a cottage food business as long as you comply with their applicable rules for home occupations.
Homeowners association restrictions are a separate matter. Many HOAs prohibit running businesses from your home, especially those that generate customer traffic. HOA covenants are private contracts, and the state cottage food law doesn’t preempt them. Review your HOA’s CC&Rs before you invest in packaging and permits.
Standard homeowners insurance policies typically exclude coverage for business activities at your residence. If a customer gets sick from your product and sues, your homeowners policy will likely deny the claim. Product liability insurance designed for food businesses starts at roughly $300 per year. The law doesn’t require it, but it’s worth carrying.
Cottage food income is taxable. Report earnings and deduct business expenses on Schedule C of your federal return. Common deductions include ingredients, packaging, labels, permit fees, and the training course cost. If you use a dedicated portion of your kitchen exclusively for production, the IRS simplified home office method allows $5 per square foot of dedicated space, up to 300 square feet.7Internal Revenue Service. Simplified Option for Home Office Deduction Sole proprietors with no employees can use their Social Security number and don’t need a separate Employer Identification Number. You’ll need an EIN if you form an LLC, hire employees, or meet other IRS criteria.8Internal Revenue Service. Employer Identification Number
Most cottage food products qualify for California’s general exemption for food sold for human consumption, so you won’t collect sales tax on items like bread, granola, or cookies. Some products may still be taxable depending on how they’re classified and sold. If you’re unsure, check with the California Department of Tax and Fee Administration.
When You Need MEHKO Instead
If you want to sell hot meals, foods that need refrigeration, or dishes with meat and dairy, cottage food registration won’t cover you. California offers a separate permit called a Microenterprise Home Kitchen Operation (MEHKO) that allows preparation and sale of potentially hazardous foods, essentially running a small restaurant from home. MEHKOs have their own requirements, including more rigorous inspections and different sales limits. Not all counties have opted into the MEHKO program, so confirm whether your county participates before going that direction.