Oklahoma Cottage Food Law: Sales Cap, Labeling, and 2026 Changes

Under the Oklahoma cottage food law, you can produce and sell most non-meat foods from your home kitchen without a commercial license, provided your total sales stay under the annual cap and you follow the state’s labeling and sales rules. The current framework is the Homemade Food Freedom Act (HB 1032), signed in 2021.1Oklahoma State Department of Health. Food Freedom Act Policy Letter On November 1, 2026, it is replaced by the Local Food Freedom Act (HB 3720), which raises the sales cap from $75,000 to $250,000 and loosens several restrictions.2Oklahoma House of Representatives. Local Food Freedom Act Signed Into Law

What You Can and Can’t Sell

Two categories are allowed. Shelf-stable items (non-TCS, meaning non-time-or-temperature-controlled for safety) include breads, cookies, brownies, tortillas, honey, trail mix, nuts and nut butters, popcorn, dry mixes, dry pasta, jams, jellies, most fermented and pickled foods, sauces, roasted coffee beans, and non-alcoholic drinks like soda and coffee. A product also counts as shelf-stable if it has a pH of 4.6 or lower or water activity of 0.85 or less, which brings many pickled items and acidified salsas into the category.1Oklahoma State Department of Health. Food Freedom Act Policy Letter

Perishable items (TCS) are also allowed but carry extra obligations. These include custard-filled cakes, cheesecake, pecan and pumpkin pie, ice cream, cheese, cooked pasta, cooked eggs, processed vegetables, cooked beans, and flavored coffee or tea drinks like lattes and smoothies.

Several products are off-limits entirely, no matter the category: meat, poultry, seafood, meat by-products, unpasteurized milk, cannabis or marijuana products, and alcoholic beverages.3Oklahoma Department of Agriculture, Food, and Forestry. Food Safety Selling any of these requires separate licensing and commercial inspection, and meat and poultry additionally require federal USDA inspection.4Food Safety and Inspection Service. Custom Exempt Review Process These exclusions carry over into the new Local Food Freedom Act.2Oklahoma House of Representatives. Local Food Freedom Act Signed Into Law

Annual Sales Cap

Right now, total annual gross sales of all homemade food products cannot exceed $75,000 per calendar year.1Oklahoma State Department of Health. Food Freedom Act Policy Letter Exceed that number and you lose the exemption, which means a commercial food establishment license to keep operating.

Starting November 1, 2026, the Local Food Freedom Act raises the cap to $250,000.2Oklahoma House of Representatives. Local Food Freedom Act Signed Into Law Note that “gross sales” means total revenue. Ingredient costs, packaging, booth fees, and other expenses do not reduce the figure that counts against the limit.

Labeling Requirements

Every product needs a label, either on the package, on a placard at the point of sale, or on the webpage if you sell online. All text must be at least 10-point font and include:3Oklahoma Department of Agriculture, Food, and Forestry. Food Safety

  • Your name, phone number, and the physical address where the food was made. If you register with ODAFF, you can use your registration number in place of these.
  • A clear description of the product.
  • A complete ingredient list in descending order by weight.
  • An allergen disclosure identifying any of the major allergens present: milk, eggs, peanuts, tree nuts (specify the type), soybeans, wheat, fish, crustacean shellfish, and sesame.5Office of the Law Revision Counsel. 21 USC 343 – Misbranded Food
  • The statement: “This product was produced in a private residence that is exempt from government licensing and inspection.”

If a third-party vendor (a grocery store, farm stand, and so on) displays your products, they must post a placard reading: “This product was produced in a private residence that is exempt from government licensing and inspection. This product may contain allergens.”6Oklahoma Legislature. House Bill 1032

A Nutrition Facts panel is not required for most cottage food producers because of an FDA small-business exemption that covers anyone selling fewer than 100,000 units per product per year with fewer than 100 full-time equivalent employees. Making any nutrition claim on the label (for example, “low fat” or “high fiber”) eliminates the exemption and triggers the full Nutrition Facts requirement.7Food and Drug Administration. Small Business Nutrition Labeling Exemption

Food Safety Training

Training is required only if you sell perishable (TCS) foods. If you stick to shelf-stable items, you do not need to take a course.

TCS producers must complete and pass an approved food safety course before their first sale. ODAFF maintains the approved list, which includes ServSafe Food Handler and Manager Training. The course must be available online and cannot exceed eight hours.3Oklahoma Department of Agriculture, Food, and Forestry. Food Safety Most approved courses cost between $10 and $50.

Where You Can Sell and How You Can Deliver

Shelf-stable products have the widest reach. You can sell direct to consumers in person, online, or by phone, and you can also sell through third-party vendors such as grocery stores, farm stands, farmers markets, co-ops, craft fairs, and flea markets.6Oklahoma Legislature. House Bill 1032 For delivery, you can hand them off yourself, use a designated agent, or ship them through a parcel service, as long as the delivery stays inside Oklahoma.

Perishable products are more restricted. Sales must go directly from you to the consumer. Online and phone orders are fine, but you cannot route TCS products through a grocery store, co-op, or any other third party.6Oklahoma Legislature. House Bill 1032 Delivery must be made by you personally. No agents, no shipping carriers.

Every sale under the cottage food exemption must occur within Oklahoma. The moment a product crosses state lines, it enters interstate commerce and falls under federal FDA jurisdiction, and a private residence is not a registered food facility under federal regulations.8Food and Drug Administration. How to Start a Food Business Shipping to a customer in Texas or Kansas without proper FDA registration exposes you to federal enforcement.

Sales Tax

Cottage food sales are not exempt from Oklahoma sales tax. You need a sales tax permit from the Oklahoma Tax Commission before you start selling, and you have to collect state, county, and city tax on every transaction. The combined rate varies by sales location, so use the Oklahoma Tax Commission’s rate lookup for the specific place you sell.

Federal Income and Self-Employment Tax

The IRS treats cottage food income as self-employment income no matter how small the operation. Report your profit (revenue minus deductible expenses) on Schedule C.

If your net self-employment earnings reach $400 or more in a year, you also owe self-employment tax of 15.3%: 12.4% for Social Security on net earnings up to $184,500 in 2026, and 2.9% for Medicare with no cap.9Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)10Social Security Administration. Contribution and Benefit Base Deductible expenses commonly include ingredients, packaging, labels, booth fees, food safety training, delivery costs, and the share of home utilities used for food production. Keep records from day one.

Product Liability Insurance

Oklahoma does not require cottage food producers to carry liability insurance. The catch is that standard homeowners policies contain business activity exclusions in the property, liability, and medical payments sections. If a customer gets sick from something you sold and files a claim, your homeowners insurer will almost certainly deny it because commercial food production was never covered.

Dedicated cottage food liability policies are available through specialty providers, with annual premiums starting around $300 for general liability and product liability coverage. Final cost depends on your revenue, location, and any add-ons like equipment coverage.

What Changes on November 1, 2026

HB 3720, signed in May 2026, replaces the Homemade Food Freedom Act with the Local Food Freedom Act effective November 1, 2026. The main changes:2Oklahoma House of Representatives. Local Food Freedom Act Signed Into Law

  • The sales cap rises from $75,000 to $250,000 per year.
  • The definition of a “local food establishment” expands beyond private residences to include other locations.
  • The labeling and allergen disclosure requirements carry over unchanged.
  • Producers must comply with local zoning and building codes.
  • Violations of the act are punishable by a fine of up to $300.

For anyone already operating under the current law, the core framework stays the same. The zoning compliance point is worth checking if your municipality limits commercial activity in residential areas.