The new Texas Cottage Food Law: What changed with SB 541
Texas Senate Bill 541 (SB 541), also called the Texas Food Freedom Act went into effect on September 1, 2025. This bill dramatically expands opportunities for Texans looking to start a home-based food business.
At Hotplate, our mission is to make it possible for anyone from any background to start and scale a profitable food business. With these changes to Texas cottage food law, it has become much easier to launch, grow, and succeed as a food entrepreneur in Texas.
Note: while we strive to keep the information here current, head to Texas Department of State Health Services for the latest updates. If you have any questions, contact DSHS by emailing foodestablishments@dshs.texas.gov or calling 512-834-6753.
What Changed Under SB 541
Approved Foods
The old Texas cottage food law only let you sell baked goods and jams. Now, you can sell anything that’s not on the list below:
Meat, poultry, seafood
Ice cream and frozen treats
Low-acid canned goods
CBD or THC products
Raw milk and raw milk products
Foods like cream pies, cheesecakes, flan, vegetarian casseroles, vegetarian pizza, and cut fruit are now fair game, so long as they don’t contain any of the ingredients on the exclusion list above.
Higher Sales Cap
SB 541 tripled the gross annual sales cap for a Texas cottage food business from $50k to $150k, with future adjustments tied to inflation.
New Wholesale Option via Cottage Food Vendors
SB 541 introduces the idea of a cottage food vendor.
You can now sell non-refrigerated (non-TCS) foods wholesale via a registered “cottage food vendor” (like a local co-op, café, or store).
The vendor must register with the Texas Department of State Health Services (DSHS).
This is a huge update for Texas food entrepreneurs. Previously, CFOs were restricted to direct-to-consumer sales only (farmers markets, online orders with direct pickup/delivery).
Now, with wholesale allowed, operators can reach more customers by stocking their non-perishable goods in local stores, cafés, and markets.
Expanded Eligibility
Nonprofit 501(c)(3) organizations (churches, charities, community groups) can now operate cottage food businesses too, producing from the homes of officers or directors. This can fuel fundraising efforts and community-based food projects.
New Labeling Rules
Every product sold under the new Texas cottage food law must include:
A disclosure statement:
“THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION.”
Producer name and contact info, or a state-issued ID number if you register with DSHS (so you don’t need to put your home address on labels).
For refrigerated “TCS” (time and temperature control for safety) foods:
Production date
Safe handling instructions:
“SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption.”
No Local Permits or Fees
Cities and counties in Texas will no longer be able to require permits, inspections, or fees for cottage food operations. Everything is regulated at the state level.
This makes starting a home-based food business in Texas faster and cheaper.
Refrigerated Food Rules
For foods that require refrigeration (like cheesecakes or cream pies), producers must:
Register with the Texas Department of State Health Services (DSHS)
Maintain proper refrigeration during storage and delivery
This keeps safety top of mind while still expanding the law’s scope.
Sampling & Donations
Samples are allowed—but only of foods you can legally sell.
Non-refrigerated foods can now be donated for bake sales and charitable events, providing clarity for nonprofits and fundraisers.
Why This Matters for Texas Food Entrepreneurs
SB 541 represents one of the most significant changes to Texas cottage food law since it was first passed. Here’s what it means if you want to start a home food business in Texas:
More freedom in what you can sell → beyond baked goods and jams.
Room to grow → with a $150,000 sales cap and wholesale options.
Less red tape → no local permits or fees, simplified labels.
Safe expansion → refrigerated foods allowed with clear safety rules.
Community support → nonprofits and home cooks alike can participate.
The Bottom Line
The Texas Food Freedom Act (SB 541) transforms how Texans can sell food from home. With a tripled income limit, more approved products, and a pathway to wholesale, it’s now easier than ever to launch and scale a cottage food business in Texas.
If you’re dreaming of starting your own food business in Texas, now’s the time. Check out our guide on How to Comply with SB 541.
Here at Hotplate, our goal is to make it possible for anyone, anywhere to start and scale a food business. Build your storefront in seconds and reach out to our team at support@hotplate.com if we can help you out along the way!
