Source: Texas Department of State Health Services (DSHS). Cottage food laws change often — confirm current rules before selling.
SB 541 (effective Sept 1, 2025) tripled the cap from $50,000 to $150,000 (inflation-adjusted going forward), expanded allowable foods, enabled wholesale to third-party vendors, allowed address omission on labels, made nonprofits eligible, and prohibited local licensure.
Outgrowing cottage food? When you need a licensed kitchen, see Texas food-business requirements, estimate the build with the cost-to-open calculator, and check whether you need a hood.