California Cottage Food Laws: Class A vs Class B, Limits, and Labels

California cottage food laws let you make and sell certain shelf-stable foods from your home kitchen without renting commercial space, under the state’s Homemade Food Act. The program sets up two tiers of cottage food operations, caps annual sales at $75,000 or $150,000 depending on tier, limits what you can produce to a state-approved list of nonhazardous foods, and runs registration and permitting through your county environmental health department.¹

Class A or Class B: Which One Fits You

The first decision is how you plan to sell. That choice sorts you into one of two categories.¹

A Class A operation is for direct sales only. You sell straight to the person who eats the food: out of your home, at farmers’ markets, holiday bazaars, bake sales, food swaps, farm stands, and through CSA subscriptions. Phone and online orders count as direct too, as long as they go to the end consumer. Class A operators register with the county through a self-certification process. No kitchen inspection is required before you start.

A Class B operation can do everything a Class A does and also sell indirectly through third-party retailers such as local grocery stores, restaurants, and cafes. Because those retailers reach a wider public, Class B requires a county-issued permit and a physical inspection of your home kitchen before you begin.

Sales Caps and Who Can Help You

Class A operations are capped at $75,000 in gross annual sales. Class B operations are capped at $150,000.² Those are the statutory base numbers; the law requires annual adjustment for inflation using the California Consumer Price Index, so ask your county environmental health department for the current figure before you plan around a hard number.¹

You can employ up to one full-time equivalent person. Family members, household members, and delivery drivers do not count against that limit.¹ A spouse who bakes with you and a cousin who packs orders are both fine. Two unrelated assistants would put you over.

What You Can and Can’t Make

Cottage food products have to be “nonpotentially hazardous,” meaning foods that stay safe at room temperature without refrigeration. The California Department of Public Health maintains the official approved list and can add or remove items.³ As of January 2026, the approved categories include:

Baked goods such as bread, cookies, brownies, muffins, cupcakes, fruit pies (not pumpkin), donuts, tortillas, and churros. No cream, custard, or meat fillings.
Candy and confections including chocolate, fudge, toffee, brittles, caramels, marshmallows without eggs, cotton candy, freeze-dried candies, and chocolate-covered nonperishables like nuts or dried fruit.
Dried and dehydrated foods such as granola, trail mixes, dried fruit and vegetables, pasta, popcorn, potato chips, herb blends, spice rubs, coffee, tea, and baking mixes.
Jams, jellies, preserves, and fruit butters, limited to fruits that comply with 21 CFR Part 150.
Roasted or pasteurized nuts, and nut butters.
Frostings and fondants, including buttercream, flat icing, fondant, and sugar glazes, provided they contain no eggs (pasteurized eggs and meringue powder are exceptions), cream, or cream cheese.
Extracts (vanilla, citrus, fruit, spice) containing at least 35% food-grade alcohol.
Pure honey, sorghum syrups, vinegars, and mustards.
Powdered beverage mixes like hot chocolate.

Anything that needs refrigeration is out: cheesecake, cream-filled pastries, fresh salsa, and the like. If you want to sell something that isn’t on the list, CDPH runs a petition process to request additions.

How to Register (Class A) or Get a Permit (Class B)

Your county environmental health department handles both tracks. CDPH sets the statewide rules and maintains the approved foods list but does not issue permits itself.⁴ Before you apply, gather:

Proof of food safety training. You must complete an ANSI-accredited food handler course within three months of being registered or permitted, and many counties want it done before they’ll process your application.⁵
A full product list with ingredients and brand names for any pre-made components.
An equipment inventory covering ovens, mixers, food processors, and anything else you’ll use.
Water source documentation. A recent utility bill works for municipal water; private well users must show recent test results.
Draft labels for each product.

Some counties also want a kitchen floor plan and a short written sanitation plan. Application forms live on your county department’s website.

Fees vary by county. Class A registration tends to run a few hundred dollars; Class B permits usually cost more because they include an inspection. Both tiers charge an annual renewal fee. Call the county for current amounts, which change often.

On timing, Class A is faster because there’s no inspection. Class B generally runs anywhere from a few weeks to a couple of months, depending on county workload and whether the department comes back with questions.

What the Class B Kitchen Inspection Looks For

A health inspector will visit your home kitchen before issuing a Class B permit. They’re checking that your prep space is clean, organized, and kept separate from ordinary household risks:

Clean food-contact surfaces, adequate hot and cold running water, and a workable sanitation system for utensils and equipment.
Ingredients and finished products stored away from household chemicals and non-food items.
Pets kept out of the food preparation area during production.
No evidence of insects or rodents.

Class A kitchens aren’t formally inspected before approval, but if a consumer complaint gives the county reason to suspect unsafe food or a violation, inspectors can enter a Class A kitchen too.

Labeling Every Package

Every product needs a label that satisfies both state and federal rules. California Health and Safety Code § 114365.2 requires the following on each package:⁶

The phrase “Made in a Home Kitchen” in at least 12-point type on the front of the package. If you’re repackaging a purchased product, use “Repackaged in a Home Kitchen.”
The common name of the food, such as “Chocolate Chip Cookies” or “Strawberry Jam.”
Your cottage food business name.
Your Class A registration number or Class B permit number, with the issuing county’s name.
All ingredients listed in descending order by weight if the product has two or more ingredients.

Federally, you must declare any of the nine major allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame.⁷ Net weight has to appear in both English and metric units. Most cottage operations qualify for the FDA’s small business exemption from a full nutrition facts panel.⁸

Selling Online, and Why You Can’t Ship Out of State

Both Class A and Class B operators can take orders online, by phone, or through any other digital channel, and fulfill them in person, by mail, or through a third-party delivery service.⁴ That gives home bakers a real path to an online California customer base.

Every sale has to stay inside California. Once a product crosses state lines it becomes interstate commerce, and the FDA does not recognize state cottage food exemptions. Shipping cookies to a customer in Nevada puts you in the position of an unlicensed food manufacturer under federal law. Selling nationally would mean operating as a licensed food business under the Federal Food, Drug, and Cosmetic Act and the Food Safety Modernization Act, with a registered facility.

Renewals and Keeping Current

Registrations and permits last one year and renew annually. Class B operators get another kitchen inspection at each renewal. If you move, you have to re-register or re-permit at the new address no matter where you are in the yearly cycle.

Between renewals, you have to stay under your sales cap, keep your product list current with the county, and keep meeting labeling and sanitation rules. Many counties require you to submit any new product and its label for review before you start selling it.

Zoning, Business Licensing, and HOA Rules

California law bars cities and counties from banning cottage food operations outright in residential zones. Each local jurisdiction has to either treat a compliant cottage food operation as a permitted residential use or issue a nondiscretionary permit.⁹ Your city can’t reject you just for running a food business out of your home.

Local governments can still set reasonable standards for parking, noise, and traffic, and some cities require a separate home occupation permit or business license on top of your cottage food paperwork. Check with your city’s planning or business licensing office along with the county. If you rent or live in an HOA community, your lease or HOA rules may add restrictions that state law does not override.

Taxes

Cottage food income is business income. You’ll report it on your federal return, typically on Schedule C, and you can deduct ordinary business expenses like ingredients, packaging, and equipment. California state income tax applies as well.

Sales tax depends on the product. In California, most food sold for human consumption is exempt when it isn’t “prepared food” meant to be eaten on the premises, so packaged cookies, jams, and granola are generally exempt. Some items, like certain candies or carbonated beverages, can be taxable. If you plan to sell at farmers’ markets or similar venues, you may need a seller’s permit from the California Department of Tax and Fee Administration before your first sale.

Insurance

California doesn’t require cottage food operators to carry product liability insurance. Going without it is a real gamble, though, because your homeowner’s or renter’s policy almost certainly won’t cover claims from a home food business. If a customer gets sick or has an allergic reaction, you could face a lawsuit with no coverage behind you. A general liability policy that includes product liability is worth pricing out, especially once you move to Class B and your products are sitting on retail shelves. A basic policy for a small operation is usually affordable relative to the financial risk of an uncovered claim.

1
California Legislative Information. California Health and Safety Code HSC 113758 – Cottage Food Operation
2
California Department of Public Health. Assembly Bill 1144 Fact Sheet
3
California Department of Public Health. Approved Cottage Foods List
4
California Department of Public Health. Cottage Food Operations
5
California Department of Public Health. Cottage Food Operator Training
6
California Legislative Information. California Health and Safety Code HSC 114365.2
7
U.S. Food and Drug Administration. Food Allergies
8
U.S. Food and Drug Administration. Small Business Nutrition Labeling Exemption
9
California Legislative Information. AB 1616 Assembly Bill – Chaptered