Cottage food law
Michigan cottage food law: what home bakers can sell in 2026
Under the Michigan cottage food law, you can bake shelf-stable foods such as breads, cookies and fruit pies in your home kitchen and sell them directly to consumers, with no license or inspection, up to $50,000 in gross sales a year ($75,000 if you sell products priced at $250 or more per unit). The 2026 update, House Bill 4122, took effect on March 24, 2026: it raised the cap from $25,000, allowed in-state online, mail order and third-party delivery sales, and indexes the cap to inflation starting October 1, 2026. Every product needs a label saying it was made in a home kitchen not inspected by the Michigan Department of Agriculture and Rural Development (MDARD).
| Topic | Rule |
|---|---|
| Sales cap | $50,000 gross a year; $75,000 if you sell products priced at $250 or more per unit; adjusted for inflation from October 1, 2026 (check the current figure with MDARD) |
| Allowed foods | Foods that do not need time or temperature control: breads, cookies, cakes without perishable fillings or frostings, fruit pies, candy, jams |
| Online and shipping | Online, mail order and third-party delivery allowed within Michigan if the buyer can talk to you before the sale; no out-of-state sales |
| Where to sell | Directly to consumers only; no wholesale or consignment |
| License and fee | No license or inspection; optional MSU Product Center registration (fee: check with the MSU Product Center) |
| Labeling | Product name, name and address or registration number, net weight in customary and metric units, ingredients, allergens, and the MDARD home kitchen statement |
| Training | Not required |
| Sales tax | Food for home consumption is generally exempt; check with the Michigan Department of Treasury for your products |
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.
What changed in the Michigan cottage food law in 2026
Michigan's cottage food rules have existed since 2010, and for years the limit was $25,000 in gross sales, with sales only face to face. House Bill 4122 was signed on December 23, 2025 and took effect on March 24, 2026. It is the biggest change since the law was written.
The headline change is the cap: $50,000 a year, or $75,000 if you sell products priced at $250 or more per unit, such as tiered celebration cakes. Starting October 1, 2026, the limits are adjusted every year for inflation using the Detroit Consumer Price Index. We could not find a published adjusted figure on the day we checked, so confirm the current number with MDARD before you plan around it.
The second change is how you can sell. You can now take orders online or by mail and use third-party delivery platforms, as long as the buyer is in Michigan and you give them a chance to talk to you directly before the sale.
- Gross sales cap raised from $25,000 to $50,000 a year
- $75,000 cap if you sell products priced at $250 or more per unit
- Caps adjusted for inflation each year from October 1, 2026
- In-state online, mail order and third-party delivery sales allowed
- Optional registration through the MSU Product Center, with a registration number you can print instead of your home address
Foods you can and cannot sell from a Michigan home kitchen
The law covers foods that do not need time or temperature control for safety, meaning they stay safe on a shelf at room temperature. For bakers, that covers most of what you would sell at a farmers market.
Anything that needs a fridge is out. The usual trap is the filling or the frosting: a plain sponge cake is allowed, but the same cake with a cream cheese frosting or a custard filling is not. If you are unsure about a product, ask MDARD before you sell it.
| Usually allowed | Not allowed |
|---|---|
| Breads, rolls and bagels | Cheesecake |
| Cookies, brownies and bars | Cream pies, custard and pumpkin pie |
| Cakes and cupcakes with shelf-stable frosting | Cakes with cream cheese frosting or whipped cream |
| Fruit pies and pecan pie | Cream-filled pastries and tres leches |
| Candy, fudge, granola and popcorn | Meat, poultry, fish and low-acid canned foods |
| Jams and jellies, dry mixes, dried herbs | Salsas and anything that must be refrigerated |
Where and how you can sell
You must sell directly to the person who will eat the food or give it as a gift. Farmers markets, roadside stands, events, orders picked up from your home and, since March 2026, online and mail orders within Michigan all count as direct sales.
You cannot sell wholesale or on consignment, so no supplying a coffee shop, restaurant or grocery store, and no leaving products for a shop to sell for you. Shipping outside Michigan is not allowed under the cottage food law; selling across state lines needs a licensed kitchen.
For online orders, the condition is that the buyer can reach you directly before buying, for example by message, phone or video call. A shop page with no way to contact you does not meet it.
Label requirements
Every cottage food product sold in Michigan needs a label. The required statement is: Made in a home kitchen that has not been inspected by the Michigan Department of Agriculture and Rural Development.
Check MDARD's current guidance for the minimum type size before you print a batch of labels; guides we found differ on it. If you sell items that are not packaged, such as a cake picked up in person, ask MDARD how the label must be shown.
- The name of the product
- Your name and address, or your MSU Product Center registration number if you registered
- Net weight or volume, in both customary and metric units
- Ingredients in descending order of weight, including the ingredients of sub-components
- Allergen statement for the major food allergens
- The home kitchen statement above
Registration, fees, training and sales tax
No license, permit or kitchen inspection is needed to sell cottage food in Michigan. The 2026 law adds an optional registration through the Michigan State University Product Center. Its main benefit is a registration number you can put on labels instead of your home address; secondary sources report a one-time fee of up to $50, so confirm it with the MSU Product Center.
Michigan does not require food safety training for cottage food operators. A food handler course is still worth taking, and MDARD publishes free guidance.
Sales tax is separate from the cottage food law. Michigan generally exempts food for home consumption from its 6% sales tax, while prepared food is taxable. Whether your items are taxable depends on what you sell and how, so check with the Michigan Department of Treasury, and register with Treasury if any of your sales are taxable.
Your city, township or homeowners association may also have zoning rules for home businesses. The cottage food law does not override them.
Example: staying under the cap and still making money
This is an example with made-up numbers. A baker sells 12 dozen cookies a week at $18 a dozen, which is $216 a week or $11,232 a year. They also take 4 custom cakes a month at $85, which is $4,080 a year. Gross sales come to $15,312, well under the $50,000 cap.
Gross sales are only half the picture. If a dozen cookies costs $6.10 in ingredients and $0.90 in packaging, each dozen leaves $11.00 before your time and overhead. Knowing that number per product tells you which items deserve the market table space.
On Team, every sale goes into the Farinu sales log and the monthly P&L shows each month's revenue and what you actually kept, so adding up the months tells you how close you are to the cap. Recipe costing works out the cost per dozen from your ingredients, packaging, labor and overhead, and suggests a price for your target markup. Margin alerts tell you when a rise in butter or flour prices pushes a product below its target, and what to charge instead.
Sources
- Michigan Department of Agriculture and Rural Development: Cottage Food Information
- Michigan Legislature: House Bill 4122 (2025)
Questions
- Do I need a license to sell baked goods from home in Michigan?
- No. Michigan's cottage food law does not require a license, permit or inspection. Registration with the MSU Product Center is optional and mainly lets you print a registration number instead of your home address.
- What is the Michigan cottage food sales limit in 2026?
- $50,000 in gross sales a year, or $75,000 if you sell products priced at $250 or more per unit. The limits are adjusted for inflation each year starting October 1, 2026, so confirm the current figure with MDARD.
- Can I sell cottage food online or ship it in Michigan?
- Yes, since March 24, 2026, as long as the buyer is in Michigan and can interact with you directly before the sale. Shipping to other states is not allowed under the cottage food law.
- Is this legal advice?
- No. This page summarizes the rules as we found them on the date shown. Check with MDARD and your local government before you start selling.
Related pages
Know what each Michigan sale really earns
Farinu costs your recipes and suggests prices, so you can grow toward the cap with margins you trust. Cost up to 10 recipes free; upgrade to Team to log your sales and see your monthly profit.