Washington State Cottage Food Law: Permits, Labels, and Sales Cap

Washington’s cottage food law lets you sell certain homemade, shelf-stable foods directly to consumers in the state without renting a commercial kitchen. The program is run by the Washington State Department of Agriculture under RCW 69.22, caps your gross sales at $35,000 a year, and limits you to foods that stay safe at room temperature.¹ In exchange for the low barrier to entry, you accept real tradeoffs: every sale has to be person-to-person inside Washington, you cannot ship, and your home kitchen will be inspected.

Foods You Can Sell

The approved categories in WAC 16-149-120 all share one trait: low moisture or high acidity that prevents bacterial growth without refrigeration.²

Baked goods including breads, rolls, biscuits, cookies, crackers, cakes, brownies, bars, donuts, scones, muffins, and fruit pies
Confections such as chocolates, fudge, truffles, toffee, marshmallows, caramel, candies, and pralines
Jams, jellies, and fruit butters, where the recipe includes a cook step like a hot fill or hot water bath
Dehydrated fruits, vegetables, herbs, herb blends, and dry seasoning blends
Dry mixes, ground coffee, and dried tea blends
Whole nuts and nut mixes

Foods That Are Off-Limits

Anything requiring refrigeration falls outside the program. Custard pies, cream-filled pastries, pies with fresh unbaked fruit, and cheesecakes all support bacterial growth at room temperature and are prohibited.² Meat and poultry products are out. So are fresh salsas, dairy-based sauces, ice cream, and frozen dough. Pet food is specifically excluded and regulated separately as commercial feed.³ For jams and jellies, wax paraffin cannot be used to seal containers.

How You’re Allowed To Sell

Every sale has to happen face-to-face between you (or your employee) and the person eating the food. Farmers markets, craft fairs, community events, and direct pickup from your home all qualify.¹ If you run a small retail space such as an antique shop or art studio, you can sell your own cottage food products there as well.

Online advertising and online ordering are fine, but the handoff has to be in person. Shipping by mail or courier is not permitted, which rules out interstate sales.⁴ You also cannot sell through grocery stores, restaurants, wholesalers, or consignment. The maker has to be the seller.

The $35,000 Sales Cap

Gross sales cannot exceed $35,000 per year.¹ If you reach the ceiling, you need a commercial food processor license to keep operating, which means working out of an inspected commercial kitchen. If you’re trending toward the limit mid-year, start researching commercial licensing before you cross it, not after.

Labeling Every Product

Every item has to be prepackaged and labeled in English with all of the following:²

Your business name and WSDA permit number
The product name
Ingredients in descending order by weight, including the sub-ingredients of any compound ingredient (for example, the components of imitation vanilla extract listed in parentheses)
Net weight or volume
Allergen information meeting federal labeling rules
Nutritional information, if you make any nutritional claim on the label
The disclaimer “Made in a Home Kitchen that has not been subject to standard inspection criteria,” in at least 11-point type and a contrasting color

Large cakes and bulk containers can be labeled using a product information sheet handed to the buyer instead of a label stuck to the product, as long as the item is protected from contamination in transit.²

Allergens

Federal law requires that labels identify the food source of all major allergens used in the product. The FDA recognizes nine: milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soybeans, and sesame.⁵ If your ingredient list already names the allergen clearly, such as “wheat flour” or “butter,” that satisfies the rule. Otherwise, you need a separate allergen statement. WSDA reviews labels carefully during the application.

Getting Your Permit

WSDA recommends submitting your packet at least eight weeks before you want to start selling.⁶

What To Have In Place First

Everyone who prepares cottage food products needs a valid Washington State Food Worker Card. Training and the test are available online through your local health department, and the card costs $10.⁷ A first card is good for two years, and if you renew before it expires you can get a three-year card.⁸

You also need a Washington State Business License (UBI number) through the Department of Revenue’s Business Licensing Service. The business name and address on that license must match your cottage food application exactly.⁹ If you want to run as an LLC, file with the Secretary of State before you apply for the business license.

What Goes In The Packet

The WSDA application asks for more than the basic form:⁶

A kitchen floor plan showing preparation equipment, food contact surfaces, wash and sanitize sinks, hand-washing facilities, storage, the primary restroom, and any pet or child areas with gates
Each recipe you plan to produce, with ingredients by weight and step-by-step instructions
Draft labels for each product
A copy of your Business License
Food Worker Cards for everyone handling food
Well water test results if you’re on a private water supply, tested at least 60 days before you apply and annually after

Mail the packet with a check or money order for $355 payable to WSDA. The fee is nonrefundable once received.¹⁰

The Home Kitchen Inspection

Once your paperwork is approved, a WSDA Food Safety Compliance Specialist contacts you to schedule a visit.¹⁰ The inspector reviews the kitchen, packaging area, restroom, and both raw ingredient and finished product storage, checking that the setup matches your floor plan, that equipment is sound, that business supplies are separated from household items, and that the space is clean and pest-free.¹

By applying, you grant WSDA the right to enter your home during normal business hours for inspections.¹¹ Worth understanding before you apply: your kitchen becomes a regulated workspace. After a successful inspection, the permit runs for two years, with inspections happening annually inside that cycle.¹⁰

Taxes

Washington has no state income tax, but cottage food income is not tax-free. The state’s Business and Occupation (B&O) tax applies to gross receipts, and you must register with the Department of Revenue once your gross income reaches $12,000 per year.⁹ Because the sales cap is $35,000, most operators doing meaningful volume will owe B&O.

Sales tax depends on the product. Washington generally exempts unheated bakery items and food sold without utensils from retail sales tax, but combined or prepared products are treated differently.¹² A bagged loaf of bread is almost certainly exempt. A cupcake handed over with a fork may not be. Check the Department of Revenue’s guidelines for your specific products.

Federally, cottage food income is self-employment income reported on Schedule C, with self-employment tax owed on net earnings above $400. If you use part of your home exclusively and regularly for the business, you may qualify for the home office deduction.¹³ The exclusive-use requirement is the catch for cottage food: a kitchen also used by the family generally won’t qualify, though a storage room used only for business supplies could.

Insurance And Liability

Standard homeowners policies typically contain business activity exclusions. If someone gets sick from your product, or is injured at your home during a sale, a claim can be denied. Even part-time commercial food production can trigger these exclusions, which can affect coverage of the structure itself if a kitchen fire happens during a production run.

Product liability policies written for food businesses usually run from a few hundred to a couple thousand dollars a year depending on volume and products. Many farmers markets require proof of liability coverage before letting you set up, so you may need a policy regardless. Talk to your homeowners agent before your first sale to find out what is and isn’t covered, and add a separate product liability policy for the gap.

Forming an LLC creates a legal separation between personal and business assets, so a lawsuit against the business typically reaches only the LLC’s assets rather than your home, car, or savings. Keeping that protection requires strict separation of finances, starting with a dedicated bank account for all cottage food income and expenses. The LLC filing fee is paid through the Secretary of State, and the filing happens before the business license application.

Local Zoning And HOA Rules

State approval doesn’t override local rules. Many cities and counties require a home occupation permit before any business operates from a residence, and those permits can restrict signage, customer traffic, parking, or the share of your home used for business. If you’re in an HOA, it may impose its own limits on commercial activity. None of this surfaces in the WSDA process, so check with your local planning or zoning department before you spend money on the state application.

1
Washington State Department of Agriculture. Cottage Food Operation
2
Washington State Legislature. Washington Administrative Code 16-149 – Cottage Food Operations
3
Washington State Legislature. Washington Administrative Code 16-149-120
4
Washington State Legislature. RCW 69.22.020 – Cottage Food Operations
5
FDA. Food Allergies
6
Washington State Department of Agriculture. Application for Cottage Food Operation Permit
7
Washington State Department of Health. Food Worker Card
8
Washington State Food Worker Course. Washington State Food Worker Course
9
Washington Department of Revenue. Apply for a Business License
10
Washington State Department of Agriculture. Cottage Food Operation Permit
11
Washington State Legislature. RCW 69.22.030 – Permits, Permit Renewals
12
Washington Department of Revenue. When to Charge Sales Tax on a Food Item
13
Internal Revenue Service. Topic No. 509, Business Use of Home