$75,000 is the top end of the cottage-food revenue caps in the fact pack, but some states go even higher or unlimited.
Cottage food isn’t “anything homemade” — the shelf-stable line still runs the show
Cottage food laws let you sell certain homemade foods without a commercial kitchen, but the approved list depends on your state and the line is drawn for food safety. The short version: most cottage food laws allow non-potentially hazardous foods — products that do not need refrigeration to stay safe. That bucket includes baked goods, jams and jellies, honey, candies, dried herbs, roasted nuts, and similar shelf-stable items. Products like infused olive oils often qualify under these rules, while foods that require refrigeration — dairy, meat, seafood, cream or custard fillings — are almost always excluded.
Gobble's Take: If it needs a cold stare from the fridge, it probably doesn’t belong in cottage food.
Source: Cottage Food Laws by State: 2026 Rules for All 50 States
Revenue caps are real, reset every year, and can force a business model change
Most states cap how much you can earn annually under cottage food laws, and the caps range from as low as $25,000 to completely unlimited. The fact pack sorts these states into four tiers: Low ($25,000 or less) covers Illinois, Virginia, and Iowa; Moderate ($25,001–$50,000) covers California, Texas, and Oregon; High ($50,001–$75,000) covers Colorado, Michigan, and Florida; and Very high or unlimited ($75,000+) covers Utah, Wyoming, and North Dakota. The important part for sellers: these caps are gross revenue, not profit, and they typically reset on January 1. If you go over the cap, most states require you to stop selling or upgrade to a commercial kitchen license, though some states use a tiered system where a higher revenue level means a permit upgrade instead of a full kitchen shift. Always verify your current limit with your state’s Department of Agriculture or Health Department.
Gobble's Take: Revenue caps are not a suggestion; they’re the line between “home business” and “time to read the permit fine print.”
Source: Frequently Asked Questions
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