California Cottage Food Law Explained
Class A vs Class B, the inflation-adjusted sales caps, what you can sell from a home kitchen, labels, training and county fees.
California's Homemade Food Act lets you make approved, shelf-stable foods in your own kitchen and sell them as a cottage food operation (CFO). Class A sells only directly to customers and registers with the county; Class B can also sell through stores and restaurants and needs a county permit. The caps are set in law at $75,000 and $150,000 and adjusted for inflation; CDPH's latest published figures (effective January 1, 2025) are $86,206 and $172,411 in gross annual sales.
Class A vs Class B
| Class A | Class B | |
|---|---|---|
| Who you can sell to | Consumers directly | Consumers, plus shops, restaurants and other retailers |
| County approval | Registration and a self-certification checklist | Permit |
| Inspections | Only after a complaint | Up to once a year |
| Gross annual sales cap (2025) | $86,206 | $172,411 |
| Employees | One full-time equivalent, not counting family or household members | |
Direct sales can happen in person (at home, a farmers market, a fair), by mail or through a delivery service, anywhere in California. Neither class can ship across state lines.
How the sales caps have grown
Health and Safety Code 113758 raised the caps to $75,000 and $150,000 in 2022 and tied them to the California Consumer Price Index. CDPH's Food and Drug Branch publishes each year's adjusted figures:
| Effective | CPI adjustment | Class A | Class B |
|---|---|---|---|
| Jan 1, 2022 | Base | $75,000 | $150,000 |
| Jan 1, 2023 | 7.3% | $80,475 | $160,950 |
| Jan 1, 2024 | 3.9% | $83,614 | $167,227 |
| Jan 1, 2025 | 3.1% | $86,206 | $172,411 |
As of this writing CDPH hasn't published a 2026 adjustment. Some sites quote higher figures, but until CDPH posts them, the county will hold you to the latest official cap. The caps are on gross sales, before ingredients and other costs.
What you can sell
Only foods on CDPH's approved cottage foods list, which are "non-potentially hazardous": they don't need refrigeration to stay safe. Typical examples are breads, cookies, cakes and pies without cream, custard or meat fillings; candy and fudge; dried fruit; fruit jams and jellies; granola and trail mix; nut butters; popcorn; and roasted coffee and dried tea. Cheesecake, cream pies, meat jerky, canned vegetables and anything else that needs refrigeration are not allowed. Check your county's copy of the list before you start; CDPH adds items from time to time.
Getting started
- Register (Class A) or apply for a permit (Class B) with your county environmental health department. Fees are set locally; Orange County, for example, charges $225 for the first review and $128 (Class A) or $384 (Class B) a year to renew.
- Take a food processor course approved by CDPH within three months of registering, and again every three years.
- Check city rules. Under Government Code 51035, a city or county can't prohibit a cottage food operation in a home, though it can require a permit to use the home for one. Many cities also require a business license.
- Label every product with "Made in a Home Kitchen" (in 12-point type), the product name, your business name and address, the county and registration or permit number, ingredients in order of weight, net quantity and any major food allergens.
When you outgrow it
If sales will pass the Class A cap, move up to Class B. Past the Class B cap, the business has to leave the cottage food program and use a permitted commercial kitchen, such as a commissary or shared-use kitchen, with a standard food facility permit.
Taxes and permits
Most cottage foods are food products that are exempt from sales tax in California, but hot prepared food is taxable; if anything you sell is taxable, you need a seller's permit (see the Seller's Permit Checker). Income from the business is self-employment income on your tax return.
Find your class
The Cottage Food Permit Checker tells you which class fits your sales channels and whether your projected sales fit under the cap.
Frequently Asked Questions
What is the cottage food sales limit in California?
The law sets $75,000 for Class A and $150,000 for Class B and adjusts both for inflation each year. CDPH's latest published caps, effective January 1, 2025, are $86,206 and $172,411 in gross annual sales.
What is the difference between Class A and Class B cottage food?
Class A can only sell directly to consumers (in person, by mail or by delivery within California) and just registers with the county, with no routine inspection. Class B can also sell through shops, restaurants and other retailers, needs a county permit and can be inspected up to once a year.
Can I sell cottage food online in California?
Yes. Both classes can take orders online and fulfill them in person, by mail or through a third-party delivery service, as long as the buyer is in California.
What foods can I sell under the cottage food law?
Only foods on CDPH's approved cottage foods list, which are shelf-stable, non-potentially hazardous items such as baked goods without cream or meat fillings, candy, dried fruit, jams and jellies, granola, nuts and roasted coffee. Anything that needs refrigeration is out.
Can I hire employees for a cottage food business?
You can have one full-time equivalent employee, not counting family or household members.
This article is for general information only. Your county environmental health department registers and permits cottage food operations and has the final word on fees and rules. Sources: Health and Safety Code 113758 and the California Homemade Food Act; CDPH Food and Drug Branch, Cottage Food Operation Requirements and Adjusted Gross Annual Sales Limit table; OC Health Care Agency cottage food page (fees).