California’s cottage food law lets residents prepare and sell certain shelf-stable foods from a home kitchen after registering with or getting a permit from their county environmental health department. The program runs on two tiers: Class A operations register and sell directly to consumers, while Class B operations get a permit, pass a kitchen inspection, and can also sell through retailers like grocery stores and cafes. Both tiers face limits on what you can make, how much you can earn, and how you label your products.
What You Can Sell
Only foods that are not potentially hazardous qualify. In practice that means items naturally shelf-stable because they’re dry, baked, or high in acidity. The California Department of Public Health maintains the official approved list and updates it periodically, so check the current version before adding a new product.1California Department of Public Health. Approved Cottage Foods List
Common approved categories:
- Baked goods such as cookies, brownies, bread, cakes, and fruit pies or tarts, but not items with custard, cream, or meat fillings
- Fruit jams, jellies, butters, and preserves that meet federal acidity standards
- Dried fruits, roasted nuts, nut mixes, granola, and trail mix
- Candy, toffee, and flavored popcorn
- Honey, herb blends, dry pasta, and certain vinegars
Anything that needs refrigeration to stay safe is off-limits. Fresh dairy, meat, cream cheese frosting, and fresh vegetable purees don’t qualify. Pumpkin pie is out even though other fruit pies are in.1California Department of Public Health. Approved Cottage Foods List
Class A and Class B: Which One You Need
California Health and Safety Code Section 113758 creates the two tiers, and the difference matters for how you sell and how much oversight you face.2California Legislative Information. California Code HSC 113758 – Cottage Food Operation
Class A operations sell directly to consumers. That covers sales at your home, farmers’ markets, farm stands, holiday bazaars, bake sales, and CSA subscriptions. Phone and online orders count as direct sales too, and you can fulfill them by mail or third-party delivery. Class A requires registration rather than a permit, which means no mandatory pre-approval kitchen inspection.3California Department of Public Health. Cottage Food Operations
Class B operations do everything Class A can plus sell indirectly through third-party retailers such as grocery stores, cafes, and restaurants that hold their own food permits.2California Legislative Information. California Code HSC 113758 – Cottage Food Operation Class B requires a permit, and your county health department will inspect your home kitchen before issuing it.4Los Angeles County Department of Public Health. Class B Cottage Food Operators If you want to stock local shops or supply a restaurant, Class B is the only path.
Revenue Caps
The statute sets base gross revenue caps of $75,000 for Class A and $150,000 for Class B, adjusted annually for the California Consumer Price Index.2California Legislative Information. California Code HSC 113758 – Cottage Food Operation As of January 1, 2025, the inflation-adjusted limits are $86,206 for Class A and $172,411 for Class B.5California Department of Public Health. Cottage Food Operation Adjusted Gross Annual Sales Limit CDPH publishes updated figures each year.
The caps are measured in gross revenue, not profit. Ingredient costs and expenses don’t reduce the number. If you exceed the Class A cap, you’ll need to move to Class B; exceeding the Class B cap means transitioning to a licensed commercial kitchen. The revenue ceiling is what keeps the program aimed at small-scale producers.
Labeling Requirements
Every cottage food product needs a label that meets both California and federal standards. Required elements:6California Department of Public Health. Labeling Requirements for Cottage Food Products
- The common or descriptive name of the food
- Your business name, city, and zip code (add a street address if you’re not listed in a phone directory)
- The words “Made in a Home Kitchen” in at least 12-point type on the front of the package
- A complete ingredient list in descending order by weight, including sub-ingredients
- Net quantity in English units
- A plain-language allergen declaration covering the nine major allergens: milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, soybeans, and sesame
Sesame became the ninth required allergen in January 2023, and some older cottage food guides still list only eight.7FDA. Food Allergies Missing an allergen declaration is one of the fastest ways to get a label rejected during application review.
Most cottage food operators are exempt from providing a Nutrition Facts panel. Under federal rules, businesses with fewer than 10 full-time employees don’t need to file a notice with the FDA for products selling fewer than 10,000 units annually.8Food and Drug Administration. Small Business Nutrition Labeling Exemption Guidance The exemption disappears the moment you put a nutrient claim like “sugar free” or “low fat” on the label, so avoid those phrases unless you’re ready to add full nutrition labeling.
Food Safety Training
Everyone who prepares or packages cottage food must complete a CDPH-approved food processor course within three months of registering or receiving a permit.9California Legislative Information. California Code HSC 114365.2 The course runs no more than four hours and must be retaken every three years. ANSI-accredited food handler courses that retail food workers take also satisfy the requirement.10California Department of Public Health. Cottage Food Operator Training The rule covers your employees and any household members who help with production, not just the primary operator.
How to Apply
Applications go to your county’s environmental health department, not to the state. Each county runs its own process, so forms, submission methods, and fees vary. Some counties offer online portals; others still use paper applications.
Regardless of county, you’ll generally provide:
- The name and address of your cottage food operation
- A complete list of products you plan to sell
- Ingredient lists for each product
- Sample labels for review
- A self-certification checklist confirming your kitchen meets safety and hygiene standards
Some counties also ask for a floor plan or an equipment list.3California Department of Public Health. Cottage Food Operations
Fees vary widely. A Class A registration in one county may run under $100, while a Class B permit in another can approach $500 when inspection fees are bundled in. Payment is typically due at submission and nonrefundable. Class B applicants should expect a pre-permit inspection where the inspector verifies that the workspace matches what you self-certified.11Stanislaus County Department of Environmental Resources. Class B Cottage Food Operation
Kitchen Standards
You don’t need a commercial kitchen, but your home kitchen has to meet specific conditions when you’re producing cottage food. The self-certification checklist covers the basics: clean space, sanitized food-contact surfaces, and adequate handwashing facilities. Household cooking shouldn’t overlap with commercial food preparation.
Even Class A operations aren’t fully insulated from inspection. If a consumer files a complaint or the county has reason to believe unsafe food has been produced, inspectors can access your kitchen to investigate.12California Conference of Directors of Environmental Health. AB 1616 Cottage Foods Frequently Asked Questions Additional fees can apply if a violation is found.
Employees and Household Helpers
A cottage food operation can have no more than one full-time equivalent employee beyond the operator. Family and household members who help with production don’t count toward that limit, and neither do delivery drivers.2California Legislative Information. California Code HSC 113758 – Cottage Food Operation Anyone who prepares or packages food, paid or not, must complete the same food safety training.9California Legislative Information. California Code HSC 114365.2
If you hire a non-family employee, standard labor rules apply. Federal wage and hour laws, workers’ compensation, and payroll tax obligations don’t disappear because the workplace is a home kitchen.
Taxes and Seller’s Permit
Cottage food income is taxable. Sole proprietors report revenue and expenses on Schedule C.13Internal Revenue Service. About Schedule C Form 1040, Profit or Loss from Business Net self-employment earnings of $400 or more trigger self-employment tax and a Schedule SE filing.14Internal Revenue Service. Business Taxes Because nobody withholds income tax from your sales, quarterly estimated payments may be needed to avoid a filing-time penalty.
On the state side, you’ll likely need a seller’s permit from the California Department of Tax and Fee Administration.15California Governor’s Office of Small Business. Business Quick Start Guide – Cottage Food Operation Most food sold for human consumption in California is exempt from sales tax, but items like candy and snack foods may be taxable depending on category. Check with CDTFA on your specific products.
Some cities and counties also require a home occupation permit or general business license before you operate any business from a residence. Contact your local planning department early so a missing permit doesn’t hold up your application.
Selling Online and Across State Lines
Online sales are fully legal for both Class A and Class B. The statute specifically includes phone, internet, and other digital transactions as direct sales, and you can fulfill them by mail or third-party delivery.2California Legislative Information. California Code HSC 113758 – Cottage Food Operation
The hard boundary is the state line. California’s cottage food exemption applies only to sales within California. Once a product crosses into another state, it becomes interstate commerce subject to federal FDA regulation, and the FDA does not recognize state-level cottage food exemptions. From the federal perspective, shipping cottage food across state lines makes you an unlicensed food manufacturer. Keep your delivery and shipping addresses inside California.
Insurance
California doesn’t require cottage food operators to carry product liability insurance. Going without it is a gamble. If a customer has an allergic reaction or claims illness from your product, you’re personally liable, and homeowner’s policies typically exclude claims tied to commercial activity in the home.
Product liability policies for small food producers generally run between $800 and $1,400 a year, with typical limits of $1 million per incident and $2 million aggregate. As sales grow, the math increasingly favors carrying coverage.
Renewal and Ongoing Compliance
Registrations and permits are valid for one year and must be renewed annually. Your county typically sends a renewal notice about a month before expiration. Class B operators should expect another kitchen inspection at each renewal. Letting your authorization lapse means you’re operating without a permit.
Staying compliant also means keeping food safety training current every three years, updating your product list and labels with the county when you add new items, and tracking gross revenue against your tier’s cap. If your Class A sales are approaching the ceiling, apply for a Class B permit before you cross it rather than scrambling afterward.
When Cottage Food Doesn’t Cover What You Want to Sell
California has a separate program for home cooks that often gets confused with cottage food. Assembly Bill 626 created Microenterprise Home Kitchen Operations (MEHKOs), which allow residents to prepare and sell meals that do require temperature control, including cooked dishes with meat, dairy, and other perishable ingredients. MEHKOs face stricter daily meal limits, mandatory county permitting, and regular inspections.16California Department of Public Health. Microenterprise Home Kitchen Operations Not every county has opted in, so availability depends on where you live. If you want to sell prepared meals rather than baked goods and preserves, look into MEHKOs separately.