California Cottage Food Laws: How Home Bakers and Makers Can Legally Sell Homemade Foods

Ever wondered if you can turn your home kitchen into a legal, money-making venture in California? With California’s cottage food laws, you absolutely can! Whether you’re famous in your neighborhood for sourdough bread, dream of selling jams at farmers markets, or want to launch a home-based cookie business, here’s your in-depth, plain-English guide to California cottage food laws—what you can make, how you can sell it, and how to keep your side hustle legal.

What Are California’s Cottage Food Laws?

California’s Cottage Food Law (originally the California Homemade Food Act, AB 1616, now part of the California Health and Safety Code § 114365) lets you make and sell certain “non-potentially hazardous” foods from your home kitchen. The goal: help small food businesses get started without expensive commercial kitchens, as long as public health and transparency are protected. Since launching in 2013 and expanded in 2018, it’s become one of the most popular cottage food programs in the nation.

What Foods Can You Sell Under California Cottage Food Law?

You can only sell foods that are considered “low-risk”—meaning they don’t need to be kept hot or cold for safety. California’s Department of Public Health maintains a specific list of approved cottage foods. Here are some examples:

Baked goods (cookies, breads, cakes, brownies, muffins, tortillas)
Jams, jellies, marmalades, and fruit preserves (using high-acid fruits)
Candies, caramels, toffees, fudge, brittles
Honey, nut butters, popcorn, granola, trail mix
Dry mixes (pancake, cookie, soup, spice blends, teas, coffees, etc.)
Vinegar and mustard (certain types only)
Dried fruit, dried pasta

Not allowed: Any food requiring refrigeration or hot-holding for safety. This means NO salsas, fresh/canned vegetables, pickles, kimchi, sauerkraut, dairy or cream pies, cheesecakes, meat, fish, or low-acid canned foods.

How Do You Become a Legal Cottage Food Operator in California?

You’ll need to follow several steps—fortunately, California makes the process pretty clear and straightforward:

Choose your permit type:
- Class A Permit – Allows you to sell directly to consumers (farmers markets, from home, community events, online for local pickup or delivery, etc.)
- Class B Permit – Allows you to sell both directly to consumers and indirectly through stores, cafes, or restaurants (must be located in your own county)
Get approved by your local environmental health department: Submit your application and get your home kitchen inspected (for Class B) or approved (for Class A, typically no inspection).
Complete a food processor training course: Required for all cottage food operators. Training must be approved by the California Department of Public Health.
Get a business license: Most cities/counties require a business license, seller’s permit (for sales tax), and possibly a home occupancy permit or zoning clearance.
Label everything: Every item you sell must be labeled according to California’s rules (see below).

Where Can You Sell Cottage Foods?

Directly to consumers at home, farmers markets, fairs, roadside stands, community events, or for pickup/delivery
Online (for in-state customers only; no interstate shipping)
Indirectly (Class B only): through retail stores, cafes, food trucks, or restaurants in your own county

No interstate shipping: Cottage foods may not be shipped across state lines.

Labeling Requirements

California’s cottage food law requires every packaged product to be labeled with:

Name of the product
Ingredients listed in order by weight
Producer’s name, address, and permit number
Allergens (as required by federal law)
Net weight or volume
The statement: “Made in a Home Kitchen” (Class A) or “Made in a Home Kitchen and Permitted by the County Health Department” (Class B)
If not individually packaged, this info must be on a sign or label at the point of sale

Food Safety Rules and Inspections

Even though you’re working from home, safety is still important:

All cottage food operators must complete an approved food safety training course
Home kitchens must be clean and free of pests; pets and small children should be kept out during food prep
Use separate storage for cottage food ingredients
Class B operators will have kitchen inspections by the county
If a foodborne illness complaint is received, county health may investigate

Taxes, Business Licenses, and Recordkeeping

Cottage food sales count as income and must be reported on your taxes. California requires most sellers to get a seller’s permit and collect/remit sales tax for taxable products. Some cities/counties require business licenses or zoning clearance, so check with your local government.

Sales Limits and Growth

California sets annual gross sales limits that increase each year (adjusted for inflation). For 2024, Class A and Class B cottage food operators can earn up to $75,000 per year in gross sales. If your business grows bigger, you’ll need to transition to a commercial kitchen and standard food facility license.

What Can’t You Do Under Cottage Food Law?

Sell foods that need refrigeration or are not on the approved list
Sell across state lines or by mail order to other states
Use other people’s kitchens (must be your primary home residence)
Sell through third-party distributors outside your own county (for Class B, sales to retailers are only legal in your county)

Common Mistakes to Avoid

Missing required info on labels
Not getting proper permits or licenses before selling
Trying to sell non-approved foods (salsas, refrigerated dips, dairy items, meat pies, etc.)
Selling outside California or online to other states
Skipping food safety training

Helpful Resources

Final Thoughts: Baking Up a Legal Business in California

California’s cottage food laws give home cooks and bakers a golden opportunity to test the waters of entrepreneurship—without a giant up-front investment. Stick to the approved foods list, follow labeling and safety rules, and don’t forget your permits. Your kitchen counter might just become California’s next big food brand!