Maryland Cottage Food Law and Sales Tax: What to Know

On this page

1. What the Maryland cottage food law covers
2. Where sales tax fits in
3. A short checklist before you sell

Most home bakers find the food rules first and the tax question second. That order makes sense, because you cannot sell anything until you know what is allowed out of your kitchen. Once you are clear on that, the money side gets easier to plan. If you are still sorting out what goes on a package, the Maryland cottage food label template walks through it.

What the Maryland cottage food law covers

The core of the law is simple. You can prepare and sell cottage food from a residential kitchen without a Department of Health license if your annual revenue stays under $50,000 and you stick to the approved list of non potentially hazardous foods. The Maryland Department of Health publishes guidelines covering the foods that may be produced and sold by a cottage food business, and the Maryland Department of Agriculture issues a memo on the same subject. Read one of those lists before you plan a menu, not after.

There is a second layer that catches people out. Under COMAR 10.15.03.27, the owner of a Maryland cottage food business must comply with all applicable county and municipal laws and ordinances regulating the preparation, processing, storage, and sale of cottage food products. The state FAQ says it plainly: even in a state with a cottage food law, a local city or town government may not allow home food or cottage food production. One phone call to your county health office saves a lot of wasted baking.

Where sales tax fits in

The cottage food guidance covers allowable foods, licensing, revenue caps, and labeling. It does not give you a tax rate to charge. That question belongs to the Maryland Comptroller, whose guidance on sales of food states that food vendors who conduct substantial grocery or market businesses are required to collect the tax on sales of food intended for consumption at those facilities. That is a rule about food vendors in those settings, not a cottage food rule, so do not read it as a yes or a no for your kitchen.

The practical move is to ask. Contact the Comptroller’s office with your situation in plain words: you bake from home under the cottage food law, you sell direct to customers, and you want to know whether your sales are taxable and what you would need to register for. Keep the answer with your records. If you sell at a market or to a retail food store, mention that too, because the setting can change the answer. The Department of Health recommends reviewing the cottage food guidelines before submitting a request to sell cottage food products to a retail food store.

A short checklist before you sell

1. 1

   Add up your year

   Keep your expected revenue under $50,000 so you stay inside the cottage food rules.

2. 2

   Check your menu against the list

   Compare every item you plan to sell against the Department of Health guidelines and the Department of Agriculture memo.

3. 3

   Call your county or city

   Ask whether home food production is allowed at your address and what local rules apply.

4. 4

   Ask the Comptroller about tax

   Find out whether your sales are taxable, and write down who told you and when.

5. 5

   Label and record

   Label every package as required and keep a simple log of sales so the numbers are ready if asked.

If you are comparing how nearby states handle the same question, Virginia’s cottage food rules are a useful contrast, especially if you sell across a border or near one.

Once you know your costs and your tax position, pricing gets much calmer. A flat monthly cost with no commission taken from each order makes the math easier to see, which is why many bakers move to Brevl rather than paying a percentage on every sale. Card payments run through your own Stripe or Square account, and if you ever switch from another app, we move your products, photos, reviews, and dates over with you. A real person answers, usually within minutes.

• Maryland cottage food label template
• Bakesy payment methods: what to confirm before you take orders

Common questions

Do I need a license to sell baked goods from my Maryland kitchen?

Not if you stay under $50,000 in annual revenue and sell only approved non potentially hazardous foods. Above that, or outside the food list, the cottage food route no longer covers you.

Does Maryland charge sales tax on cottage food sales?

The cottage food guidance does not give a rate or an exemption. Ask the Maryland Comptroller about your own sales and keep their answer on file.

Can my town ban home food production even though the state allows it?

Yes. The Maryland cottage food FAQ says a local city or town government may not allow home food or cottage food production, and COMAR 10.15.03.27 requires you to follow county and municipal laws.

Where do I find the list of foods I can sell?

The Maryland Department of Health publishes guidelines on allowable cottage food products, and the Maryland Department of Agriculture issues a memo on the same subject. Check both before you finalize a menu.

What if I want to sell to a retail food store?

The Department of Health recommends reviewing the cottage food guidelines before you submit a request to sell cottage food products to a retail food store.

Sources

1. Cottage Food Law Library: Maryland
2. COMAR 10.15.03.27
3. Maryland Department of Health Cottage Food FAQs
4. Maryland Department of Health Cottage Food Guidelines 2025
5. Maryland Comptroller: Information About Sales of Food
6. Maryland Department of Agriculture Cottage Food Guidance
7. Cakery Bakeries: Maryland Cottage Food Laws

This is general information for home bakers, not legal or tax advice. Rules change and local governments vary. Confirm your situation with the Maryland Comptroller and your county or city health office before you sell.