Cottage food rules
Michigan Cottage Food Law Changes: What Home Bakers Need
What changed in Michigan, when it took effect, and what it means for your home bakery.
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What to remember
- Sales cap is now up to $50,000 yearly.
- The cap was raised from $25,000 by House Bill 4122 (2025 PA 51).
- The change took effect March 24, 2026.
- If you qualify, you do not need a food establishment license.
- There are no application forms to complete.
The headline for most home bakers is the sales cap. Michigan now sets the cottage food sales cap at up to $50,000 yearly. The statute also directs MDARD to adjust the limit for inflation using the Detroit Consumer Price Index, so the dollar figure can change over time. If you want to compare how another state writes its cottage food rules, Kansas cottage food laws is a useful read.
The 2026 change in plain terms
House Bill 4122 (2025 PA 51) raised the cap from $25,000. The effective date was March 24, 2026. That is the change to note if you had been holding your sales under the older limit. The law still treats cottage food operations as food establishments, but they do not have to meet the licensing and inspection requirements outlined in the Michigan Food Law.
What the exemption does and does not do
If you qualify for the cottage food exemptions, you are exempt from obtaining a food establishment license under the Food Code. There are no application forms to complete to operate under the cottage food exemption. You still must make, package, and label the food in your primary residence. A cottage food product may only be sold or delivered within Michigan.
Those rules shape what you can promise a customer. A product made in your home kitchen can be sold in Michigan, but it cannot be sold or delivered outside the state. Labeling matters too. Kentucky cottage food labels covers what a cottage food label needs, even though Michigan has its own rules.
Keeping your sales under the cap
Keep a simple running total of what you sell. The cap is yearly, so a strong month can change how much room you have left. If you are close to the limit, price your bakes with the whole year in mind. Iowa cottage food laws covers another state’s rules for home bakers, which can help you compare approaches.
A higher cap does not mean you should stop watching the number. The old limit was $25,000. The new limit is up to $50,000 yearly. If you take orders by text, by phone, or at a market, write each sale down in one place so you can see the total before the year gets away from you.
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Labeling and where you can sell
The location rule is simple. Cottage food must be made, packaged, and labeled in your primary residence. The sales rule is also simple. A cottage food product may only be sold or delivered within Michigan. If a customer asks you to ship outside the state, that falls outside what the Michigan cottage food rules allow.
Labels are part of the exemption, not an extra. The food must be packaged and labeled in your home. If you are building a label for the first time, the Kentucky guide linked above covers the kinds of details a cottage food label can need. Check Michigan’s own rules before you print.
The 2026 change gives Michigan home bakers more room to sell. The exemption still comes with limits. Keep your sales total, your labels, and your selling location inside the Michigan rules, and check the MDARD pages for the current wording.
Common questions
What is the new Michigan cottage food sales cap?
Up to $50,000 yearly under the 2026 update. It was raised from $25,000 by House Bill 4122 (2025 PA 51).
When did the change take effect?
March 24, 2026.
Do I need a license or application?
If you qualify for the cottage food exemptions, you are exempt from a food establishment license under the Food Code. There are no application forms to complete under the exemption.
Can I sell my cottage food outside Michigan?
No. A cottage food product may only be sold or delivered within Michigan.
Where must I make the food?
In your primary residence. The food must be made, packaged, and labeled there.
Will the cap change again?
The statute directs MDARD to adjust the limit for inflation using the Detroit Consumer Price Index.
Sources
This is general information, not legal advice. Check the Michigan Department of Agriculture and Rural Development pages for the current rules.