California Cottage Food Law 2026: Class A $88,878 and Class B $177,756 Sales Caps and Labels

If you want to sell food from home in California, the state's cottage food law lets you make certain products in your own kitchen without building a commercial facility. The law is in Health and Safety Code 113758 and 114365 to 114365.6. It sets two classes, each with a yearly gross sales cap, its own permitting path, and its own rules about where you can sell.

Most people search for a "cottage food license." California doesn't issue one under that name. Class A requires a county registration, and Class B requires a county permit. The paperwork is handled by your county environmental health agency, not the state. This guide covers the caps, the approved foods, the kitchen rules, labels, fees, and the point where you need to move beyond the law.

Disclaimer: This article is informational content, not legal or tax advice. Caps, fees, and approved food lists change. Confirm current figures with the California Department of Public Health (CDPH), your county environmental health agency, and the California Department of Tax and Fee Administration (CDTFA). For a complex situation, consult a qualified attorney or CPA.

What counts as a cottage food operation

A cottage food operation is a food business run by the owner in the owner's private home. An apartment counts. The operator may have no more than one full-time-equivalent employee who is not a family or household member. Family members who live with you don't count against that limit.

Class A and Class B at a glance

Feature	Class A	Class B
2026 gross annual sales cap	$88,878	$177,756
Entry requirement	Register with the county environmental health agency and submit a self-certification checklist	Apply for a permit and pass an initial inspection
Inspections	No initial or routine inspection. A county may enter the registered area only after a consumer complaint gives it reason to suspect unsafe food or a violation	One initial inspection, then no more than one inspection per year
Permitted sales	Direct sales only	Direct and indirect sales

The 2026 sales caps and how they change

The statute starts from base figures of $75,000 for Class A and $150,000 for Class B. The California Consumer Price Index adjusts those figures for inflation every year. For reference, the caps were $86,206 and $172,411 in 2025, and $83,614 and $167,227 in 2024. For 2026, the caps are $88,878 for Class A and $177,756 for Class B.

CDPH publishes the new limit each January. Check the CDPH cottage food page before you set prices or plan a production schedule, because a new figure may apply in a later year.

Direct sales and indirect sales

Direct sales go from you to the consumer. That includes sales at home, at farm stands, at farmers' markets, at bake sales, through subscriptions, and by phone or internet order. You can fulfill the order in person, by mail, or through a third-party delivery service.

Indirect sales go through a third party that holds its own retail food permit, such as a shop or a restaurant that sells your product to its customers. Class A cannot use indirect sales. Class B can.

What you may sell

Cottage food products must be non-potentially-hazardous foods on the CDPH approved list. As of this writing, the list includes:

• Breads, biscuits, churros, cookies, and pastries, without cream, custard, or meat fillings
• Tortillas and waffle cones, and pizelles
• Candy such as brittle and toffee
• Chocolate-covered nuts and dried fruit
• Dried fruit and dried pasta
• Dry baking mixes
• Fruit pies, empanadas, and tamales
• Granola, cereals, and trail mixes
• Herb blends and honey
• Jams and jellies that meet the federal standard
• Nut mixes and nut butters
• Popcorn, vinegar, and mustard
• Roasted coffee and dried tea

Refrigerated fillings, cream or custard items, and meals don't qualify. CDPH can add or remove items from its list, so check the current version before you start a new product line.

Class A kitchen rules

Class A has no routine inspection, but you must follow the self-certification checklist you submit with your registration. The checklist covers the following:

• No cottage food work during other household activity such as family meals, laundry, or entertaining guests
• No infants, small children, or pets in the kitchen during production
• Clean, repaired equipment
• Washing, rinsing, and sanitizing food contact surfaces before each use
• No rodents or insects
• No smoking

Class B operators should expect the same basic standards to be checked during the initial inspection and any annual inspection that follows.

Training requirement

The person who prepares or packages the food must complete a CDPH-approved food processor course of four hours or less. The course must be finished within three months of registering, and then every three years after that. Confirm approved course providers with CDPH.

Labels

Labels must follow federal labeling law, including allergen disclosure. Each label must show:

• "Made in a Home Kitchen" in 12-point type or larger on the primary display panel
• The product name
• Your business name
• Your registration or permit number, along with the county that issued it
• The ingredients in descending order by weight, when the product has two or more ingredients

Advertising counts too. Any advertisement, including a website or social media post, must show the county, your registration or permit number, and the "Made in a Home Kitchen" statement.

Registration, permits, and county fees

Counties set their own fees, and the amounts vary. For example, San Diego County's 2026 to 2027 schedule is $231 to register and $92 to renew for Class A, and $526 to permit and $361 to renew for Class B. For any other county, check with your county environmental health agency for the current fee schedule. Class B counties may add a state training surcharge to the permit fee.

A few rules apply to every registration or permit:

• One county registration or permit is valid statewide.
• It is nontransferable. It belongs to the person, the location, and the type of sale.
• It must be renewed every year.
• You must keep a copy on site when you sell.

Taxes and local requirements

Most food products are exempt from California sales tax. Hot prepared food and meals are not exempt. You need a seller's permit for any taxable sales. The seller's permit is free. Check with the CDTFA at cdtfa.ca.gov to confirm how sales tax applies to each of your products, and review the sales and use tax page for current rates. The statewide base rate is 7.25%, and city district taxes can raise the combined rate to between 7.25% and 11.75%.

California has no general statewide business license. The Secretary of State issues none, and the seller's permit is not a business license. Most cities, however, charge a local business tax or require a registration certificate. Of the 483 cities, 445 report revenue from one. There is no common formula, so the answer depends on your city. Ask your city's business license office before your first sale.

When you need to outgrow the cottage food law

Cottage food is a good fit for a small, shelf-stable product line. You'll need a different path in these situations:

• You exceed the annual cap. Once your gross sales pass your class cap, you must move to a licensed facility.
• You want to wholesale to other businesses. Selling to another business that resells your product requires a facility registered under CDPH's Processed Food Registration program. The cottage food law does not cover this.
• You want to sell refrigerated meals from home. Cottage food cannot cover refrigerated meals. Those sales fall under a separate home-based program, the MEHKO home restaurant permit.
• You want a storefront. A bakery that moves out of the home needs its own commercial setup. The State of California's small business resources can help you plan that transition.

For the entity, tax, and licensing steps that come with growth, the California Small Business Development Center network at californiasbdc.org offers free advising. A CPA can help you decide when to form an LLC or corporation.

Next steps

1. Choose your class based on expected sales and whether you want indirect sales.
2. Confirm that your products are on the CDPH approved list.
3. Contact your county environmental health agency for the registration or permit form and fee.
4. Complete the food processor course within three months of registering.
5. Set up your labels with the required statement, permit number, and ingredient list.
6. Apply for a seller's permit with the CDTFA if any of your sales are taxable, and check your city's business tax rules.
7. Track your gross sales against the cap every year.

The cottage food law is a practical way to test a food business from home. Keep your records clean, confirm the current caps each January, and move to a licensed facility before you hit the limit.