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

Texas Health and Safety Code Chapter 437 Subchapter B establishes the cottage food production operation framework that preempts local regulation. Denton cannot require a permit, inspection, food handler card, or business license for qualifying cottage food operations. Allowed products include baked goods (bread, cookies, cakes, pastries), candy, coated and uncoated nuts, dried fruits, vinegar, pickles, mustard, roasted coffee, dried pasta, popcorn and popcorn snacks, cereal, granola, trail mix, honey, jams, jellies, and fruit butter. Potentially hazardous foods requiring temperature control (dairy-based items, meat, seafood) are not permitted.

Annual gross sales are capped at $75,000. Products must be sold directly to consumers -- not through retail stores, restaurants, or online marketplaces that handle the product. Sales may occur at the home, at farmers markets, at community events, or through direct delivery. All products must be labeled with the producers name and home address, the date of production, and the statement: This food is made in a home kitchen and is not inspected by the Department of State Health Services or a local health department.

The Denton County Health Department does not inspect cottage food operations but can provide guidance. Cottage food income is subject to federal income tax and Texas sales tax on taxable food items.