Cottage food law

California cottage food law: what home bakers need to know in 2026

California cottage food law lets you bake approved, shelf-stable foods at home and sell them once your county registers you (Class A, direct sales only, up to $88,878 in gross sales in 2026) or permits you (Class B, which adds sales through shops and cafes, up to $177,756). You also need a cottage food operator training within three months and labels that say "Made in a Home Kitchen". Each rule is explained below, with official sources at the end.

California cottage food law: key facts for 2026
TopicRule
Sales cap (2026)Class A: $88,878 gross annual sales. Class B: $177,756. Adjusted every January for inflation.
Who you can sell toClass A: direct to consumers only. Class B: direct, plus indirect through permitted shops, cafes and restaurants.
Allowed foodsOnly foods on the CDPH approved list: shelf-stable items such as breads, cookies, cakes without cream fillings, candy and jams.
Online sales and shippingAllowed within California: orders by phone or internet, fulfilled in person, by mail or by third-party delivery. No sales across state lines.
Registration or permitClass A registers and Class B gets a permit from the county environmental health department. Fees vary by county: check with your county.
Labeling"Made in a Home Kitchen" in 12-point type, product name, operation name and city, registration or permit number and county, ingredients, net quantity, allergens.
TrainingCottage food operator training within three months of registration or permit.
EmployeesAt most one full-time equivalent employee, not counting family or household members.
Sales taxMany food products are exempt from California sales tax, but some items and sales may not be: check with the California Department of Tax and Fee Administration (CDTFA).

Last verified October 11, 2026

This page is general information, not legal advice. Rules change: check them with your state or local authority before you sell.

Class A or Class B: choosing your California cottage food registration

California calls a home food business a cottage food operation (CFO). The two classes differ in who you may sell to, not in what you bake.

Class A registers with the county environmental health department and submits a self-certification checklist. It may only make direct sales to the person who eats the food: at a farmers' market, a bake sale, from home, or through orders by phone, website or app.

Class B needs a county permit, with more paperwork and an inspection. It may also make indirect sales to a permitted shop, cafe or restaurant that resells your products. If a coffee shop wants to carry your cookies, you need Class B.

Both classes may have at most one full-time equivalent employee, not counting family or household members, and must work in the registered area of the home where you live.

What foods you can sell

Only foods on the California Department of Public Health (CDPH) approved cottage foods list are allowed: foods that stay safe without refrigeration.

Anything that needs the fridge is out, such as cheesecake, cream pies, custard or cream fillings, whipped cream, cream cheese frosting, meat fillings and pumpkin pie. If a recipe is not on the list, ask your county before selling it.

Selling online, shipping and delivery

A direct sale can be ordered in person, by phone, on a website or by any digital method, and fulfilled in person, by mail or through a third-party delivery service. That applies to Class A too.

Every sale must happen within California. Shipping cookies to a customer in Oregon falls outside cottage food rules and needs a licensed commercial kitchen.

For Class B indirect sales, the shop or cafe must hold its own permit.

California cottage food label requirements

Every packaged cottage food product needs a label that follows both state and federal rules. CDPH lists these items:

Registration, training and kitchen rules

CDPH does not register cottage food operations; your county or city environmental health department does. Fees and forms are set locally, so check with your county environmental health department for current amounts.

Within three months of registration or permit, complete a cottage food operator training from the options CDPH lists.

Operating rules for every class:

Staying under the sales cap: a worked example

The caps count gross sales, what customers pay you, not profit. Here is an example with illustrative numbers for a Class A baker.

At $6,950 a month, this baker reaches $83,400 a year, about 94% of the 2026 Class A cap, with no room for a busy December. Moving to Class B or tracking a running total are both reasonable. Counties can ask you to verify sales, so keep records.

On Team, Farinu keeps a sales log and a monthly P&L, so you can add up each month's gross sales and see how close you are to the cap.

Example: monthly gross sales of a Class A home bakery
ProductUnits per monthPrice (USD)Gross sales (USD)
Celebration cakes40$55.00$2,200.00
Cookie boxes (dozen)120$24.00$2,880.00
Sourdough loaves150$9.00$1,350.00
Jam jars40$13.00$520.00
Total350-$6,950.00

Pricing so the cap is worth reaching

Because the cap limits revenue, every sale must carry real profit. A $55 cake that costs $41 once you count ingredients, the box, two hours of your time and the oven uses up your cap for little return.

Farinu costs each recipe with ingredients, packaging, sub-recipes, labour, machines and overhead, suggests a price from the markup you set over cost, and alerts you when an ingredient price rise cuts a product's margin. Costing is free for up to 10 recipes, and orders for up to 50 a month; Team adds sales, unlimited orders and stock.

Sources

Questions

How much can I sell under California cottage food law in 2026?
Up to $88,878 in gross annual sales as a Class A operation and up to $177,756 as Class B. The amounts rise each January with the California Consumer Price Index, so check the CDPH sales limit sheet at the start of each year.
Can I sell cottage food online and ship it in California?
Yes. Both classes can take orders online or by phone and deliver in person, by mail or through a delivery service, as long as the customer is in California.
Can I sell cakes with buttercream?
Buttercream made without eggs, cream or cream cheese is allowed, and so are frostings made with meringue powder or pasteurized eggs. Cream cheese frosting, whipped cream and custard fillings are not.
Is this legal advice?
No. This page summarizes CDPH guidance as checked on the date shown. Rules and fees can change and counties apply them locally, so confirm with your county environmental health department before you start selling.

Related pages

Know what each bake earns before you hit the cap

Cost your recipes and set prices with a real margin, free for up to 10 recipes. On Team, log sales and check each month's total against the California limit.

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