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Carrollton, TX Home Business: Cottage Food Operations (2026)

Few Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Local permit required
None; state law bars it
Annual income cap
$150,000 (CPI-adjusted)
Required label disclosure
"Produced in a private residence" statement
Training requirement
Accredited basic food safety course
Excluded foods
Meat, seafood, ice products, raw milk
Effective date of latest amendment
September 1, 2025 (S.B. 541)

Summary

Texas law, not Carrollton ordinance, governs home-based cottage food sales, and it bars the city from regulating or permitting them. A cottage food producer working from a home kitchen can sell directly to consumers without a city license, so long as gross income from the business stays at or under $150,000 a year.

Sec. 437.0191. EXEMPTION FOR COTTAGE FOOD PRODUCTION OPERATIONS. (a) A cottage food production operation is not a food service establishment for purposes of this chapter. (b) The exemption provided by Subsection (a) does not affect the application of Sections 431.045, 431.0495, and 431.247 authorizing the department or other local health authority to act to prevent an immediate and serious threat to human life or health. Sec. 437.0192. REGULATION OF COTTAGE FOOD PRODUCTION OPERATIONS BY LOCAL GOVERNMENT AUTHORITIES PROHIBITED; COMPLAINTS. (a) A local government authority, including a local health department, may not: (1) regulate the production of food at a cottage food production operation; or (2) require a cottage food production operation to obtain any type of license or permit or pay any fee to produce or sell directly to a consumer or cottage food vendor, or to provide samples directly to a consumer, a food other than a food described by Sections 437.001(2-b)(A)(i)-(vi).

Source: Carrollton Code of OrdinancesView official code

Full Breakdown

0192 goes further: no local government authority, including a local health department, may regulate the production of food at a cottage food operation, or require it to obtain any license, permit or fee to sell directly to a consumer or a cottage food vendor. 0192(c). 86(I)(5), telling farmers market vendors operating as cottage food producers to follow the state statute rather than city food rules. The exemption is not unlimited: a cottage food operation must be run by an individual out of that individual's home (or a nonprofit director's home), gross $150,000 or less annually from food sales after CPI adjustment, and deliver food to the buyer at the point of sale.

Certain foods are carved out entirely, including meat, seafood, ice products, low-acid canned goods, and raw milk. 0193 requires every food sold to carry a label with the operation's name and address (or a DSHS-issued ID number in place of the address) and the disclosure that the product was made in a private residence not subject to government licensing or inspection. 0195 requires the individual producing the food to complete an accredited basic food safety training course, or be directly supervised by someone who has, or be a household member.

Violations & Fines

A city or county cannot cite, fine or require a permit from a cottage food operation for its production activity; § 437.0192(a) makes that regulation itself unlawful for the local authority to attempt. The state remedy runs the other way: TDSHS and local health departments keep a record of consumer complaints and may act under §§ 431.045, 431.0495 and 431.247 to stop an operation that poses an immediate, serious threat to life or health, and mislabeled or untrained sellers risk state enforcement under §§ 437.0193 and 437.0195 rather than a city citation.

Frequently Asked Questions

Can Carrollton require a home bakery to get a city food permit?
No. Texas Health and Safety Code § 437.0192(a) expressly forbids any local government authority, including a health department, from regulating cottage food production or requiring a license, permit or fee to sell directly to consumers or a cottage food vendor.
Is there an income limit on cottage food sales in Texas?
Yes. Under § 437.001(2-b)(B), a cottage food production operation qualifies for the exemption only while its annual gross income from covered food sales is $150,000 or less, a figure DSHS adjusts each year for inflation using the CPI-U.
What must a cottage food label say?
Section 437.0193(b) requires the operation's name and address (or a DSHS ID number instead of the address) plus the statement that the product was produced in a private residence not subject to governmental licensing or inspection; foods needing refrigeration need a safe-handling statement too.

Sources & Official References

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