California Cottage Food Law: Class A vs B, Permits, and Labeling

The California Cottage Food Law lets you make and sell certain shelf-stable foods out of your home kitchen without renting commercial space. You register (or get a permit) from your county environmental health department, stick to an approved list of non-refrigerated foods, complete a food safety course, follow specific kitchen and labeling rules, and keep your gross sales under an annual cap that adjusts each year for inflation. The rest is detail, and the detail matters, so work through it before you take your first order.

Foods You Can Sell From Home

Only foods that stay safe at room temperature qualify. The California Department of Public Health calls these “non-potentially hazardous” and publishes the official approved list.¹

Baked goods without cream, custard, or meat fillings: bread, cookies, brownies, muffins, cakes, tortillas, fruit pies (no pumpkin).
Candy and confections: fudge, toffee, brittles, hard candy, chocolate-covered nuts or dried fruit, caramels, and marshmallows made without eggs.
Dried and dehydrated foods: dried fruit, dried vegetables, dried pasta, granola, trail mixes, roasted coffee, tea, herbs, spice blends, and baking mixes.
Fruit jams, jellies, fruit butters, and preserves that meet federal standards.
Frostings and fondants without eggs or cream cheese, nut butters, honey, and vinegar.

Anything that needs refrigeration is off-limits: meat, poultry, fish, dairy products like cheese and yogurt, fresh salsa, canned vegetables, and baked goods with cream or custard fillings. When in doubt, check the CDPH list before you commit to a recipe.

Class A and Class B Operations

California splits home food businesses into two tiers based on how you sell.

Class A: Direct Sales Only

A Class A operation sells directly to consumers: from your home, at certified farmers’ markets, through online or phone orders, and at community events, so long as you deliver within California.² You register with your county by submitting a self-certification checklist confirming your kitchen meets sanitation standards. No inspection is required.³ The base annual gross sales cap is $75,000.⁴

Class B: Direct and Indirect Sales

Class B does everything Class A does and adds indirect sales through third-party retailers like grocery stores, restaurants, and bakeries. You need a permit rather than a registration, and the county will inspect your home kitchen before issuing it. The base annual gross sales cap is $150,000.⁴

Inflation Adjustments and Employees

Both caps rise annually for inflation. For 2025, the adjusted figures were $86,206 for Class A and $172,411 for Class B. Check the CDPH site each year for the current number before assuming you’re under the limit.²

Either class is limited to one full-time employee who isn’t a household member. Household members who help with food prep don’t count toward the employee cap, but every person who prepares or packages cottage food, family or not, must complete the required food safety training.⁵

Registering or Getting Your Permit

Applications go to the environmental health department in the county where you live. Forms and fees vary by county, but you’ll always need to provide your full name and home address, your business name, a full list of every cottage food product you plan to sell, and a sample label that meets state requirements.²

A Class A registration is mostly paperwork. The county reviews your application and self-certification, then issues a registration number. A Class B permit adds a scheduled kitchen inspection before the permit issues.

Food Safety Course

Within three months of getting your registration or permit, you have to complete a food processor course through an ANSI-accredited food handler program. Courses are available online and in multiple languages. Keep your card or certificate on file; your county can ask to see it. The training must be renewed every three years for as long as you operate.⁵

Business License and Zoning

A cottage food registration or permit is not a business license. Most cities and counties in California require a separate general business license or business tax registration. Check your local planning department too, to confirm that a home-based food operation is allowed in your zoning area. In an incorporated city, contact city hall; in an unincorporated area, contact the county.⁶

Kitchen and Sanitation Rules

Even Class A operators who never see an inspector are still legally bound to meet the same standards. The self-certification exists because the state expects you to police yourself.³

Don’t prepare cottage food while doing other household activities like cooking family meals, washing dishes, laundry, or entertaining guests.
Keep infants, small children, and pets out of the kitchen during preparation, packaging, and handling.
Wash, rinse, and sanitize every surface, utensil, and piece of equipment that touches food before each use.
Keep food preparation and storage areas free of rodents and insects.
No smoking in any area used for preparing, packaging, or storing cottage food while those activities are happening.
Everyone involved must wash hands thoroughly with soap and warm water before starting and after touching anything that could contaminate the food.

Labeling Every Product

Every package you sell must carry a label with all of the following:⁷

The common or descriptive product name, on the front of the package.
Your cottage food operation’s name, city, and zip code. If you’re not listed in a current phone directory, include your street address too.
The words “Made in a Home Kitchen” or “Repackaged in a Home Kitchen” in 12-point type on the front.
Your county-issued permit or registration number, plus the name of the county that issued it.
A complete ingredient list in descending order by weight, for any product with two or more ingredients.
Net quantity by count, weight, or volume, stated in both English units (pounds/ounces) and metric units (grams/milliliters).
A plain-language allergen declaration covering milk, eggs, fish, shellfish, tree nuts, wheat, peanuts, and soybeans, as applicable.

One thing you generally don’t need is a Nutrition Facts panel. Federal small-business exemptions cover operations well below the cottage food sales caps, so the requirement doesn’t apply to most operators.⁸

Advertising Rules

Any advertisement, whether it’s a website, a social media post, or a newspaper listing, must include the county that approved your operation, your permit or registration number, and the “Made in a Home Kitchen” or “Repackaged in a Home Kitchen” statement. Ads also have to be truthful, so don’t call a product “organic” without the certification to back it up.

Sales Tax and Seller’s Permit

Whether you collect sales tax depends on what you sell and how. Most cottage food sold to-go, including baked items like bread, cookies, and cakes, isn’t taxable in California. Tax does apply if you sell food for on-site consumption (including charging a tasting fee), sell hot prepared food, or sell at an event with paid admission.⁹ If any of your sales are taxable, register with the California Department of Tax and Fee Administration for a seller’s permit. Getting one upfront is a good idea even for all-nontaxable operators, since your product line or sales channels can change.

Federal Income Tax

The IRS treats a cottage food operation as a business. Most operators run as sole proprietors and report income and expenses on Schedule C.¹⁰ Self-employment tax of 15.3% applies to net earnings of $400 or more.¹¹ You can deduct legitimate business expenses like ingredients, packaging, booth fees, and the cost of your food handler course. A home office deduction may be available for space used to store inventory, since the IRS waives the exclusive-use requirement when your home is the only fixed location of a retail business.¹²

Insurance

Standard homeowners’ policies typically exclude business activities. If a customer has an allergic reaction, or a delivery driver is hurt at your home on a business errand, your homeowners’ insurer will likely deny the claim. A commercial general liability policy with product liability coverage is the standard fit for food businesses, and some farmers’ markets and retailers require proof of it before they’ll let you sell. The premium on a small operation is generally modest compared to the exposure of going uncovered.

1
CDPH – CA.gov. Approved Cottage Foods List
2
California Department of Public Health. Cottage Food Operations
3
California Legislative Information. California Code HSC 114365
4
California Department of Public Health. Cottage Food Operation Requirements
5
California Department of Public Health. Cottage Food Operator Training
6
CalOSBA. Business Quick Start Guide Cottage Food Operation
7
California Department of Public Health. Cottage Food Labeling Requirements
8
U.S. Food and Drug Administration. Small Business Nutrition Labeling Exemption
9
CDTFA. Tax Guide for Home-Based Businesses Industry Topics
10
Internal Revenue Service. Instructions for Schedule C (Form 1040)
11
Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
12
Internal Revenue Service. Topic No. 509, Business Use of Home