Cottage food law
Indiana cottage food law for home bakers
Indiana cottage food law lets you bake at home and sell directly to the people who eat your food, with no state permit, under one of two programs: the home-based vendor rules (IC 16-42-5.3), which have no sales cap but allow only shelf-stable foods, and the homestead vendor rules (IC 16-42-5.4), in effect since July 1, 2026, which allow more foods up to $1.5 million in yearly gross sales. Either way you sell only to the end consumer, ship only within Indiana, label every package, and hold an ANSI-accredited food handler certificate (for homestead vendors, when you ship or deliver). Below is what each program allows, what the label must say, and how to price so the work pays.
| Topic | Home-based vendor (IC 16-42-5.3) | Homestead vendor (IC 16-42-5.4) |
|---|---|---|
| Where you make food | Your primary residence or a building on that property; no rented kitchens | Your property: primary residence or agricultural property |
| Sales cap | No annual gross income limit | $1.5 million in gross sales from food and meat products per year |
| Allowed foods | Non-hazardous foods: baked goods, candy, whole produce, honey and syrups, high-acid full-sugar jams | Baked goods and other prepared foods, candy, produce, natural sweeteners, fruit spreads, meat raised on the property (some under federal rules) |
| Who you sell to | End consumers only: markets, events, roadside stands, online, delivery, third-party carrier | End consumers only: from your property, farmers markets, online, delivery |
| Shipping | Within Indiana only; keep shipping addresses for one year | Within Indiana only, in sealed packaging |
| Permit and fee | No state permit or routine inspection | No state license or routine inspection |
| Label statement | Home produced, area not inspected by the state department of health, NOT FOR RESALE | Produced by a homestead vendor, exempt from government licensing and inspection (10-point type) |
| Allergens on label | Not required | Required |
| Training | ANSI-accredited food handler certificate, always | ANSI-accredited food handler certificate if you ship or deliver |
| Sales tax | Check with the Indiana Department of Revenue | Check with the Indiana Department of Revenue |
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.
Two programs under Indiana cottage food law
Indiana does not use the phrase cottage food in its statutes. Home-based vendors (HBVs) were set up by House Enrolled Act 1149 in 2022. In 2026, House Enrolled Act 1424 (Farm and Homestead Food Sales) added two new categories, homestead vendors and small farm operators. The Indiana Department of Health told local health departments in a May 26, 2026 memo that all home-based vendor statutes remain in force, so both programs exist side by side.
For most home bakers the choice comes down to two things: what you want to sell, and how big you expect to get. Cookies, bread and other shelf-stable bakes fit the home-based vendor rules with no ceiling on sales. If you want to sell prepared foods beyond that list, the homestead vendor rules are broader, with a $1.5 million cap on yearly gross sales from food and meat products.
What a home-based vendor can sell
Home-based vendors may sell only foods that are not potentially hazardous, meaning foods that do not need temperature control to stay safe. County health department guidance lists these examples:
- Baked goods such as cookies, cupcakes, cake pops, bread and muffins
- Candy and confections such as chocolates, nougats, caramels and chocolate-covered nuts
- Whole, uncut produce, tree nuts and legumes
- Honey, molasses, sorghum and maple syrup
- Traditional jams, jellies and preserves made from high-acid fruit with full-sugar recipes, the only canned food allowed
- Not allowed: low-acid and acidified foods like salsa or pickled beets, meat products, and foods that need refrigeration
Where and how you can sell
Both programs require you to sell directly to the end consumer. Selling to a grocery store, coffee shop or restaurant for resale counts as wholesale and needs a licensed, inspected kitchen. Home-based vendors may sell in person at markets and events, at a roadside stand, online, by delivery, and through a third-party carrier. Festivals and farmers markets are allowed to accept HBVs but do not have to, and market organizers can set stricter rules of their own.
Shipping stays inside Indiana. Neither program allows shipping or delivering to a customer outside the state; interstate sales fall under federal rules and require registering with the Indiana Department of Health as a manufactured food business. Home-based vendors who ship or mail products must keep a paper or electronic record of each customer's shipping address for at least one year after the sale. If you sell online, the product label must be shown on your web page or marketplace listing.
Home-based vendors must bake in their primary residence, or in a building on the same property such as a converted shed. A rented commercial kitchen does not qualify; that is a food business and needs a license.
Labeling rules
A home-based vendor's label must show your name and mailing address, the common name of the product, the ingredients in descending order by weight, the net weight or volume, and the date the food was made. It must also carry this statement: This product is home produced and processed, and the production area has not been inspected by the state department of health. NOT FOR RESALE. County guidance says allergen labeling is not required for HBVs, though listing allergens is a good idea for your customers.
A homestead vendor's label (or a sign, for unpackaged items) needs your name and address, the ingredients in descending order by weight, a description of the product, the allergens it might have come in contact with, and this statement in at least 10-point type: This product was produced by a homestead vendor or the owner of a small farm that is exempt from government licensing and inspection.
Training, permits and inspections
Every home-based vendor needs a food handler certificate from an issuer accredited by the American National Standards Institute (ANSI), and must show a copy to the state or a customer on request. Homestead vendors need the same certificate if they ship or deliver. These are usually short online courses; the price depends on the provider you choose.
Neither program requires a state permit, registration or routine inspection. The health department may inspect or investigate if it receives a complaint, and local and state authorities may not be more restrictive than the law. If you do not meet the requirements, you are treated as an unlicensed retail food establishment. For sales tax, check with the Indiana Department of Revenue whether you need to register and which of your products are taxable.
Pricing your bakes so the work pays
No sales cap does not mean every sale is profitable. Here is an example for a dozen decorated sugar cookies, with prices you should replace with your own: flour, butter, sugar, eggs and icing come to $6.40, bags, a box and a printed label to $2.10, and 1.5 hours of your time at $18 an hour adds $27. With $1.50 of oven energy and overhead, the dozen costs $37.00 to make. At a 30% target margin, the price is $37.00 divided by 0.70, or about $52.86; charge $25 and your 1.5 hours earn just $15, or $10 an hour, with no margin at all.
Farinu does this math for every recipe: ingredients, packaging, sub-recipes like icing, labor, machines and overhead. It suggests a price from your target markup (a 30% margin is a markup of about 43%), keeps retail and wholesale price lists, and warns you when an ingredient price rises and squeezes a margin. Costing is free for up to 10 recipes.
Running custom orders and keeping records
Many Indiana home bakers sell through custom orders, farmers markets and social media. Farinu keeps your customers with their WhatsApp numbers and tracks custom orders with deposits and balance payments, and on Team it logs each sale and builds a monthly profit and loss statement. If you ship, keep the one-year record of shipping addresses a home-based vendor needs separately, for example in a spreadsheet or your carrier's shipment history.
Sources
- Indiana Department of Health, Farm and Homestead Food Sales memo (May 26, 2026)
- Putnam County Health Department, Home-Based Vendors FAQ (IC 16-42-5.3)
Questions
- Do I need a license to sell baked goods from home in Indiana?
- No state license or permit is needed under either the home-based vendor or homestead vendor rules, as long as you meet every requirement. You do need an ANSI-accredited food handler certificate as a home-based vendor, or as a homestead vendor who ships or delivers.
- Is there a sales limit for Indiana home bakers?
- Home-based vendors have no annual gross income limit. Homestead vendors can earn up to $1.5 million a year in gross sales from food and meat products.
- Can I sell cheesecake or cream-filled cupcakes?
- Not as a home-based vendor, because foods that need refrigeration are not allowed. Whether a specific item qualifies under the homestead vendor rules can depend on federal rules, so check with the Indiana Department of Health before you sell it.
- Can I ship my cookies to another state?
- No. Both programs allow shipping and delivery only within Indiana. Selling across state lines requires registering as a manufactured food business and following federal rules.
- Can I sell to a local coffee shop?
- No. Both programs require selling directly to the end consumer. Selling to a shop for resale is wholesale and needs a licensed, inspected kitchen.
Related pages
Know your real cost before you set a price
Create a free Farinu account, cost up to 10 recipes with ingredients, packaging and your time, and see the price your target markup sets. Upgrade to Team when you need more.