Texas Cottage Food Law in 2026: What Changed with SB 541
A plain-English guide to the Texas Cottage Food Law in 2026 — the new $150,000 sales cap, the wholesale rule, labeling requirements, and what home bakers in Garland, TX actually need to know.
If you've looked into starting a home bakery in Texas in the last year, you've probably come across conflicting information online. A lot of older articles still say the sales cap is $50,000 a year. It isn't — not since September 2025. Here's what actually changed with SB 541 and what it means if you're a home baker (or a customer buying from one).
The Short Version
Texas Senate Bill 541 went into effect on September 1, 2025. Three big things changed:
- ◆**Sales cap raised from $50,000 to $150,000 per year.** Home bakers can now do three times as much business before crossing the cottage-food threshold.
- ◆**Wholesale is now allowed.** Home bakers can sell to local retailers (cafes, restaurants, shops) that then sell to consumers — as long as the products don't require refrigeration.
- ◆**Labeling requirements stayed mostly the same,** with the now-standard "Produced in a home kitchen" language.
Everything else — the eligible foods, no required permits, the food handler's card — is the same as before.
Who Can Sell Under Cottage Food Law
Only individuals. Not LLCs, not corporations. If you're a home baker working from your own kitchen, you qualify. You need:
- ◆A basic food handler's card from a state-accredited program (takes about an hour online and costs ~$10).
- ◆To follow the labeling rules.
- ◆To stay under the $150,000 annual revenue cap.
That's it. No inspection, no permit, no license from the state.
What You Can Sell
Allowed (non-TCS foods — meaning shelf-stable, no refrigeration needed): - Baked goods — cookies, cakes, breads, brownies, muffins, pies with certain fillings - Jams, jellies, preserves - Candy - Roasted coffee beans - Dry tea - Nuts - Pickles (with certain acidity requirements) - Fermented and acidified foods that meet the safety rules
Not allowed: - Meat products (including jerky) - Ice cream - Pet food or pet treats - Anything requiring refrigeration to stay safe
This is why Baked by Matt focuses on cookies and brownies — shelf-stable, meets the law, fresh-baked the day before pickup.
The Label Every Product Must Have
Every cottage food product you sell in Texas has to carry a label with:
- 1.The words "Produced in a home kitchen" (or "Produced in a private residence")
- 2.Your name and address
- 3.The name of the product
- 4.A full ingredient list — including all allergens
- 5.The date the food was made
No exceptions. No "mostly followed it." The label has to be on every single item.
The Wholesale Change Is a Big Deal
Before SB 541, cottage food sales had to be direct to the consumer. That meant you could sell at a farmers' market, out of your home, or online for pickup — but you couldn't stock a cafe's bakery case.
As of September 2025, you can. Local cafes, restaurants, and retail shops can now buy from cottage food operators and resell — provided the product doesn't need refrigeration.
For a home baker in Garland, TX, that opens up an entirely new channel. Instead of only serving individual customers, you could potentially supply cookies or granola to a local coffee shop. It's a real path to growing before you hit the $150,000 cap.
What This Means for Customers
If you're buying homemade cookies in Texas — including from Baked by Matt here in Garland — you're buying under the Cottage Food Law. That means:
- ◆Products are sold directly from the baker to you (no middle-of-the-chain processing).
- ◆Every product carries a label with the baker's name, address, and full ingredient list.
- ◆Home kitchens aren't state-inspected, so you should trust the baker and check labels for allergens.
Most cottage food operators bake in the same kitchen where they feed their own families. It's not a commercial shortcut — it's just home baking done legally.
How Baked by Matt Operates Under the Law
For transparency, here's how we handle every requirement:
- ◆**Label:** Every cookie package is labeled "Produced in a home kitchen," with our name, address in Garland (TX 75040), the product name, full ingredients including allergens, and the bake date.
- ◆**Food handler's card:** On file and current.
- ◆**Sales cap:** Well under $150,000 (we're a 13-year-old running a part-time bakery — we're not close to the cap).
- ◆**Allergens:** Listed on every label and in our [FAQ](/faq). Reach out before ordering if you have specific concerns.
- ◆**Pickup only:** We don't ship and we don't deliver. Pickup from our home in Garland, TX — [see our service area](/cookies/garland) for more.
The Bottom Line
SB 541 made it easier to run a legitimate home bakery in Texas. The $150,000 cap and the new wholesale rule give real room to grow. The labeling rules and food handler requirement keep it safe for customers.
If you're thinking about starting a home bakery, the Texas cottage food framework is one of the friendliest in the country right now. And if you're a customer, buying from a cottage baker means you're buying directly from the person who made it — you know who, you know where, and you know exactly what's in it.
Curious what we're baking this week? Check the full cookie menu — or jump straight to ordering for pickup in Garland, TX.