Cottage food rules
Cottage Food Law Texas Taxes: What to Know About Sales Tax
Where to check Texas sales tax on your home bakes, and who to ask when the answer is not clear.
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What to remember
- Sales tax questions for Texas cottage food sellers go to the Texas Comptroller.
- The Comptroller publishes examples of foods that are taxable and foods that are not taxable.
- Your cottage food registration with the Department of State Health Services is a separate job from sales tax.
- Most homemade foods sold from your own kitchen need no permit or license, but sellers still register with the Department of State Health Services.
- 2025 brought the biggest change to Texas cottage food law in years, so check the current limits before you plan a big month.
The tax question comes up fast once you start taking orders. Someone at a market asks how you handle it, or you sit down with a stack of receipts and wonder what you are supposed to do. Here is who to ask, what to check, and how to keep your records so the answer is easy to find later. If you are still at the beginning, start with what the Texas cottage food law actually covers.
Who to ask about sales tax in Texas
The Texas Cottage Food Law website does not answer sales tax questions itself. It directs sellers to contact the Texas Comptroller with all questions regarding sales tax. That is the office that can tell you what applies to your bakes. The Comptroller’s website also publishes a list of examples of foods that are taxable and foods that are not taxable, which is the first place to look for the items you make most often. Read the list before you call, so your questions are specific.
What changed in 2025, and why it touches your records
Texas tripled its cottage food sales limit and opened the door to refrigerated treats in 2025, and Senate Bill 541 is described as the biggest change to Texas cottage food law in years. A higher sales limit means a bigger year on paper. A bigger year is much easier to talk through with the Comptroller when your numbers are already written down instead of scattered across your phone.
The refrigerated change comes with a limit of its own. Cottage food vendors in Texas cannot sell perishable or refrigerated foods, the ones called TCS foods, through a retail store. Items like cheesecakes, veggie lasagna, or custard pies can only be sold directly to customers. If you are adding those to your menu, keep those orders separate in your records so you can see them at a glance. Our guide to Texas cottage food labels covers what needs to go on them.
Keep records that make the answer easy to find
You do not need accounting software to stay organized. You need a short habit you will actually repeat. Write down what you sold, when you sold it, and what you charged, and keep the note from the Comptroller in the same place. Then when a tax question comes up again next spring, you have the date you called and the name of the person you spoke with, and you are not starting from scratch.
List what you bake
Write down every item you sell, using the same names you print on your labels.
Open the Comptroller's food list
The Comptroller publishes examples of foods that are taxable and foods that are not taxable. Read it against your list, item by item.
Call the Comptroller about the rest
The Texas Cottage Food Law website sends all sales tax questions to the Comptroller. Ask about the items the list does not settle.
Write down the answer
Note the date, what you were told, and who told you. Keep it with your sales records.
Keep your totals current
Add up what you sold each month so you can answer questions with numbers instead of guesses.
If you have not registered yet, cottage food law Texas registration walks through that step. Do it once, keep the paperwork together, and the tax conversation gets simpler because you already know what you are selling and where.
Open the free bake pricing calculator
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- Cottage Food Law Texas: What Home Bakers Need to Know
- Cottage Food Law Texas Registration: What to Do
- Cottage Food Law Texas Labels: What to Know
Common questions
Do I collect sales tax on cottage food in Texas?
That depends on what you sell, so do not guess. The Texas Cottage Food Law website directs sellers to contact the Texas Comptroller with all questions regarding sales tax, and the Comptroller publishes a list of examples of foods that are taxable and foods that are not taxable. Check your items against that list and call about anything unclear.
Is registering with the state the same as sorting out sales tax?
No. Texas does not require a permit or license to sell most homemade foods from your own kitchen, but sellers do register with the Department of State Health Services. That registration covers your cottage food operation. Sales tax is a separate question for the Comptroller.
Did the rules change in 2025?
Yes. Texas tripled its cottage food sales limit and opened the door to refrigerated treats in 2025, and Senate Bill 541 is described as the biggest change to Texas cottage food law in years. Check the current limits before you plan a large month.
Can I sell cheesecake or custard pie through a shop that resells it?
No. Cottage food vendors in Texas cannot sell perishable or refrigerated foods, the ones called TCS foods, through a retail store. Items like cheesecakes, veggie lasagna, or custard pies can only be sold directly to customers.
What records should I keep?
Keep a simple monthly list of what you sold, when, and what you charged, plus a note of any answer you get from the Comptroller with the date and the name of the person you spoke with.
Sources
This is general information for home bakers, not legal or tax advice. For your own sales, contact the Texas Comptroller and, if you need it, a qualified tax professional.