California Cottage Food Law (2026): Class A, Class B and Label Rules

California splits home food businesses into two classes. Which one you pick decides where you can sell, how much paperwork you'll face, and how much you can earn. The state publishes an approved food list, and only foods on that list qualify.

Class A or Class B: the first decision

A Class A cottage food operation (CFO) sells directly to the public. That includes sales by phone, online, or any other digital method, fulfilled in person, by mail, or through a third-party delivery service.

A Class B CFO can do all of that and also sell indirectly, through restaurants, markets, and other permitted food businesses.

The California Department of Public Health (CDPH) maintains the approved food list. It does not issue permits. You register or get a permit through your county's environmental health department. According to the Institute for Justice, Class A operators complete a self-certification checklist and aren't inspected unless there's a complaint, while Class B operators need an annual inspection. Fees are set by each county.

2026 sales limits

The base amounts in the statute are $75,000 for Class A and $150,000 for Class B, adjusted every year for inflation using the California Consumer Price Index. CDPH's published adjusted limits effective January 1, 2026 are:

• Class A: $88,878 in verifiable gross annual sales
• Class B: $177,756 in verifiable gross annual sales

You may also have one full-time-equivalent employee who isn't a family or household member.

What you can make

Foods must be non-potentially hazardous and on CDPH's Approved Cottage Food List. The list covers most baked goods, candy, chocolate-covered nonperishable foods, dried fruit and pasta, granola and trail mix, jams and fruit butters, nut mixes and nut butters, popcorn, roasted coffee, dried tea, and similar items. CDPH can add foods through a public notice. In October 2026 it proposed adding "Chocolate and Nut Spread", with a new list expected on or about November 16, 2026.

Not allowed: anything that needs refrigeration, plus pickles, acidified foods, juices, and meat products. If you want to sell meals, California's separate Microenterprise Home Kitchen Operation (MEHKO) program covers that, but only in cities and counties that have opted in.

Training

Every CFO must complete Cottage Food Operator Training within three months of registering or getting a permit.

The California cottage food label

CDPH's labeling guidance lists these required elements:

1. The common name of the product on the principal display panel.
2. The CFO's name, city, and ZIP code. Include a street address if you aren't listed in a current phone directory.
3. "Made in a Home Kitchen" (or "Repackaged in a Home Kitchen") in 12-point type on the principal display panel.
4. Your registration or permit number and the name of the county that issued it.
5. Ingredients in descending order of predominance by weight.
6. Net quantity in both English units (ounces or pounds) and metric units (grams).
7. Major food allergens, either in the ingredient list or in a "Contains" statement.

Computer-printed labels can put everything on the principal display panel if it's readable.

When you'd need Nutrition Facts

CDPH's guidance points out that words like "free", "low", "reduced", "high", "good source", and "light" are nutrient content claims with FDA conditions attached (21 CFR 101.13 and related sections). Use one of those words and you've moved into federal nutrition labeling. That usually means a full standard vertical Nutrition Facts label, or a linear label for a small bag or jar.

Official source

California Department of Public Health — Cottage Food Operations. Contact your county environmental health department to register.