Madison, WI Home Business: Zoning & Home Occupation Permits (2026)

Madison's zoning code treats a home business as a "Home Occupation" under the Supplemental Regulations of Sec. 151, MGO, which applies across zoning districts that allow dwellings. The baseline rule is that the business stays inside the house: subsection (a) requires the occupation be conducted within the dwelling itself, not in a garage or shed, unless the Plan Commission grants conditional-use approval for the accessory building. Subsection (b) requires the business stay "clearly incidental and secondary" to the home's residential use, and subsection (c) limits staffing to immediate family members residing on the premises or other occupants of the dwelling, hiring outside employees requires a conditional-use permit.

The code separately bars on-site wholesaling, manufacturing or assembly, and limousine, towing, cartage, auto-service or auto-repair businesses outright. Mechanical equipment is limited to what's normally used for household purposes (subsection (f)), and only goods actually made on the premises may be sold on-site (subsection (g)), samples can be displayed but not sold (subsection (h)). Space is capped at 25% of the floor area of one story of the dwelling (subsection (i)), the entrance to the business space must be from inside the building (subsection (j)), and no structural alterations may be made to accommodate the business (subsection (k)).

Subsection (m) exempts a home occupation run by a person with a disability who cannot work outside the home, verified by a physician's statement, from subsections (g) through (k). The Zoning Administrator enforces these standards, and any violation of Chapter 28, including exceeding home occupation limits without conditional-use approval, is punishable under Sec. 207(1), MGO.