Indiana Cottage Food Law: Rules, Labeling, and Sales

Indiana’s cottage food law, formally the home-based vendor statute, lets you make and sell shelf-stable foods from your own kitchen directly to Indiana consumers without a commercial license or health department permit. You do need an ANSI-accredited food handler certificate before you start, every package needs a specific label with a “not inspected” disclaimer, and you cannot ship out of state or sell wholesale. Online and phone orders are allowed, which surprises many new vendors.

Foods You Can and Cannot Sell

The rule is simple in principle: if the food needs refrigeration to stay safe, you cannot sell it under this law. Indiana calls the allowed category “not potentially hazardous,” meaning products that will not support dangerous bacterial growth at room temperature.¹

Allowed products include baked goods, jams and jellies made from acidic fruits (pH below 4.6), honey, dried herbs, roasted coffee beans, candy, chocolate truffles, fudge, granola, popcorn, fruit chips, freeze-dried fruits, and dry mixes. Cookie dough qualifies if it is made with heat-treated flour and no dairy. Cheese-incorporated breads are allowed when baked to at least 165°F with uniformly shredded cheese.¹

Off-limits foods include anything requiring refrigeration: dairy fillings, cream cheese frosting, meat products, cooked vegetables, fresh salsas, cream-filled pastries, and custard pies. Low-acid canned foods like green beans, corn, and soups are prohibited because they can support the bacterium that causes botulism when processed outside a commercial facility.² Jams made from low-acid ingredients such as peppers, figs, mint, elderberry, or mulberries are also barred, even though other fruit jams are allowed. The Home-Based Vendor Handbook keeps a detailed list organized by food category if you are unsure about a specific product.¹

Where the Food Must Be Made

All products must be made in your primary residence. That includes permanent structures on the same property, such as a detached kitchen or outbuilding, but not a rented commercial kitchen, a church kitchen, or shared space with another vendor. Preparing food anywhere other than your own home turns your operation into a food business that needs a commercial license.³

The statute also requires that animals not be present in the preparation area during production, and that you follow basic sanitation practices: handwashing, sanitized containers, clean food-contact surfaces, and safe storage of finished products.⁴

The Food Handler Certificate

Indiana does not require a state business permit or registration, but every home-based vendor must hold an ANSI-accredited food handler certificate before selling. This is the requirement that trips up more new vendors than any other.⁴

The food handler certificate is a short online course and exam covering basic food safety. It is not the longer food safety manager training commercial kitchens require. The Indiana Department of Health publishes a list of accredited course providers.⁵ You must provide a copy of your certificate to your county’s local health department and be ready to show it to any customer or state inspector who asks.

Labeling Requirements

Every packaged product needs a label. For unpackaged items sold in person, you must post a sign with the same information. Indiana law requires six specific elements:⁴

Your full name and the home address where the product was made.
The common name of the product, such as “chocolate chip cookies” or “strawberry jam.”
Ingredients listed in descending order by weight, heaviest first.
Net weight or volume, by standard measure or numerical count.
The date the product was made.
This disclaimer, in at least 10-point type: “This product is home produced and processed, and the production area has not been inspected by the Indiana Department of Health. NOT FOR RESALE.”

The “NOT FOR RESALE” language is part of the required statutory text. Your products can only go to the end consumer who buys them directly from you.³

Allergen Disclosure

Federal law requires labels to identify any of the nine major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame. Sesame became the ninth under the FASTER Act, effective January 1, 2023.⁶ You can identify allergens either in parentheses after the ingredient name, such as “lecithin (soy),” or in a separate “Contains” statement placed immediately after the ingredient list.⁷

If you sell online, the label must also appear on your website or marketplace page.³

Where and How You Can Sell

Indiana’s law is more flexible on sales channels than many guides suggest. You can sell in person at farmers’ markets, roadside stands, and community festivals. You can also take orders by phone or through the internet and fulfill them by mail, personal delivery, or a third-party delivery service.⁴

Two hard limits apply. First, every sale must stay within Indiana; you cannot ship or deliver to anyone outside the state, because crossing state lines pulls you under federal rules that require an inspected commercial facility. Second, you cannot sell wholesale. Supplying a grocery store, restaurant, or other retailer for resale requires a permit and an inspected kitchen.³

Local Rules and Market Requirements

State law sets the floor. Your county or municipality may add its own. Some local governments require a general business license or home occupation permit before you operate from your residence, and fees vary by location.

Farmers’ market organizers often impose their own conditions on top of local law. Common ones include proof of liability insurance, a vendor application fee, and a copy of your food handler certificate. Confirm requirements with any market or festival organizer before you commit to a booth.³

Inspections and Penalties

If you follow the rules, your home kitchen is not subject to routine health inspections. But when someone files a complaint about your food or your compliance, the Indiana Department of Health can inspect.³ Consumers can report suspected foodborne illness, foreign material in a product, or labeling and safety violations directly to the department’s Food Protection Division.⁸

Selling adulterated or misbranded food in Indiana is a Class A misdemeanor, punishable by up to one year in jail and fines up to $5,000. If the violation involves intent to deceive consumers, it becomes a Level 6 felony carrying six months to two and a half years and fines up to $10,000.⁹ First-time issues often draw warnings or cease-and-desist orders rather than criminal charges, but selling a product that makes someone sick is treated more seriously and can also expose you to civil lawsuits from affected consumers.

Taxes, Insurance, and Business Structure

Cottage food income is taxable. Once your net profit reaches $400 or more in a year, you owe federal self-employment tax on top of regular income tax. Report revenue and expenses on Schedule C and calculate self-employment tax on Schedule SE.¹⁰ Deductible expenses generally include ingredients, packaging, labels, your food handler course fee, market vendor fees, and mileage to sales events. A kitchen used for both family meals and food production typically fails the exclusive-use test for the home office deduction, though if your home is the only fixed location of your business you can still deduct space used regularly for storing inventory or finished products.¹¹

Indiana generally exempts food for human consumption from state sales tax, so most cottage food products will not require you to collect sales tax. Confirm with the Indiana Department of Revenue if you sell items that straddle the line between food and non-food products.

Liability insurance is not required by state law, but a single foodborne illness or allergic reaction claim can exceed years of sales revenue. Product liability policies for small food businesses start around $299 per year with typical limits of $1 million per occurrence and $2 million aggregate. Some farmers’ markets require proof of coverage before letting you set up, so it may not be optional in practice. By default you operate as a sole proprietor with no legal separation between you and the business. Forming an LLC creates that separation as long as you keep business and personal finances distinct.¹²

1
Indiana State Government. Indiana Home-Based Vendor Handbook
2
Food and Drug Administration. Acidified and Low-Acid Canned Foods Program
3
IN.gov. Home Based Vendors – FAQs
4
Indiana State Government. Indiana Code Title 16, Article 42, Chapter 5.3 – Home Based Food Products
5
Indiana State Government. Options for ANSI-Certified Food Handler Courses in Indiana
6
U.S. Food and Drug Administration. The FASTER Act – Sesame Is the Ninth Major Food Allergen
7
U.S. Food and Drug Administration. Food Allergies
8
IN.gov. Complaints – Health: Food Protection
9
Indiana General Assembly. Indiana Code 16-42-1-16 – Prohibited Acts, Defenses, Injunctions
10
Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
11
Internal Revenue Service. Publication 587 – Business Use of Your Home
12
INBiz. Business Entity Reports