Vermont Cottage Food Laws

Comprehensive Guide to Vermont Cottage Food Laws

This article provides a detailed, practical guide to Vermont’s cottage food laws, including sales limits, licensing exemptions, permitted and prohibited foods, labeling requirements, venues for sale, and steps to get started—based solely on official Vermont Department of Health sources.

Quick Facts

1. Overview / Introduction

Vermont allows home-based food businesses under two pathways: a Home-Based Food License (either Home Bakery or Home Caterer) or a licensing exemption under Act 42 (2025) for small-scale food producers. On July 1, the Vermont Department of Health adopted the Manufactured Food Emergency Rule, aligning statutory law (18 V.S.A. §4351) with Act 42 to permit cottage food operator exemptions and food processor exemptions for low‑volume producers (healthvermont.gov).

2. Sales Limits

Under Act 42 (2025), Vermont allows two exemption tiers:

• Cottage Food Operator exemption: gross annual sales of $30,000 or less for non-potentially hazardous cottage food products made in a home kitchen (healthvermont.gov).
• Food Processor exemption: gross annual sales of $10,000 or less for other processed foods packaged for resale (healthvermont.gov).

These exemptions waive licensing and fees but still require compliance with food safety regulations.

3. Licensing & Registration

If your sales exceed the thresholds or involve direct preparation of meals, you must obtain a license. The options include:

• Home Bakery License: For baked goods—bread, cakes, muffins, cookies—that don’t require refrigeration or temperature control (healthvermont.gov).
• Home Caterer License: For prepared meals sold direct-to-consumer or prepared on-site for events/farmers markets (may also require a Temporary Food Service License) (healthvermont.gov).

Application process:

• Submit applications and supporting documents at least 30 days before starting operations (healthvermont.gov).
• If licensed, you must pass an opening inspection by a public health inspector before operating (healthvermont.gov).
• Licensed operators must follow the Health Regulations for Food Service Establishments (healthvermont.gov).

Exempt operators must:

• Complete annual online training for License Exempt Food Processors and Cottage Food Operators (healthvermont.gov).
• File an exemption attestation online by January 15 annually (healthvermont.gov).

4. Training Requirements

• Exempt operators (cottage food or food processor under thresholds) must complete the Health Department’s License Exempt Food Processors and Cottage Food Operators Online Training annually (healthvermont.gov).
• Licensed operators must comply with food safety training expectations as outlined in the Health Regulations for Food Service Establishments, though specific courses aren’t specified in the sources.

5. Home Kitchen Inspection

• Licensed home-based businesses (bakery or catering) must pass an opening inspection by a public health inspector before beginning operations (healthvermont.gov).
• Exempt operators are not required to be licensed or inspected for licensure; however, they remain subject to food safety compliance and may be inspected to verify adherence (healthvermont.gov).

6. Allowed Foods

Cottage food products (under $30,000 exemption) include non-potentially hazardous items that don’t require refrigeration or time/temperature control (TCS), such as:

• Baked goods (bread, cookies)
• Candy, jams, jellies
• Dry herbs, trail mix, granola, cereal, mixed nuts
• Flavored vinegar, popcorn, coffee beans, dry tea
• Home-canned pickles, vegetables, or fruits meeting pH ≤ 4.6 or water activity ≤ 0.85, made with approved recipes or reviewed by a process authority (healthvermont.gov).

7. Prohibited Foods

• Potentially hazardous foods (TCS)—foods requiring strict temperature/time control such as meat, dairy, cooked vegetables, etc.—are not allowed under the cottage food exemption (healthvermont.gov).
• Dehydrated meats or fruits/vegetables are not permitted—dehydration requires specialized equipment and can pose safety risks (healthvermont.gov).
• Products made in non-residential or rented kitchens do not qualify for the cottage food exemption—they must be produced in the home kitchen of the operator’s personal residence/property (healthvermont.gov).
• Sales to restaurants or other licensed food establishments are prohibited under exemption—only direct-to-consumer sales allowed (healthvermont.gov).

8. Labeling Requirements

Packaged products must include:

• Producer’s name and physical address (home address, not P.O. Box) for traceability (healthvermont.gov).
• Product name, ingredient list (in descending order), net weight/volume, allergen information per federal requirements (healthvermont.gov).
• Nutritional labeling (Nutrition Facts panel) is required only if making nutrient or health claims (e.g., “low fat,” “sugar-free”) or providing nutritional info (healthvermont.gov).
• If operating under exemption, include the statement: “Made in a home kitchen not inspected by the Vermont Department of Health”, in at least 10‑point font and contrasting color (healthvermont.gov).

Bulk sales do not require individual labels but must display label information via visible signage (e.g., placard or table tent) (healthvermont.gov).

9. Where You Can Sell

• Exempt operators may sell direct-to-consumer (e.g., to individuals), but cannot sell to restaurants or other licensed food establishments (healthvermont.gov).
• Licensed operators (Home Caterer) may sell prepared foods directly, including at events or farmers markets—but may also need a Temporary Food Service License for such venues (healthvermont.gov).

The sources do not explicitly address online sales, delivery, or shipping; you should verify these details with the Health Department or local authorities.

10. Sales Tax

The provided sources do not detail state or local sales tax requirements for cottage food businesses. Entrepreneurs should consult Vermont Department of Taxes for tax obligations.

11. Special Exemptions

Act 42 (2025) allows combining exemptions:

• You may produce up to $30,000 of cottage foods and up to $10,000 of processed (non-cottage) foods, under respective exemptions, provided you stay within each category’s requirements (healthvermont.gov).

There is flexibility to request the Department to review your product’s qualification as a cottage food via a Cottage Food Product Review Request Form, though it’s not mandatory to seek approval (healthvermont.gov).

12. Getting Started

Practical steps:

1. Determine your product and sales volume: If under $30,000 (cottage food) and product qualifies, proceed with exemption; otherwise, plan for licensure.
2. Complete online training (exempt operators) and file exemption attestation by January 15 annually (healthvermont.gov).
3. For licensed operators: apply online at least 30 days before start, gather required documents (water test, menu/product list, wastewater documentation), schedule opening inspection, and await license email (healthvermont.gov).
4. Prepare your kitchen:
   • Three compartments or equivalent for wash, rinse, sanitize; use test strips for sanitizer concentration.
   • Avoid bare-hand contact with ready‑to‑eat food; use gloves or utensils.
   • Keep food separate from personal or pet food; keep children and pets out of kitchen during prep (healthvermont.gov).
5. Set up labeling per requirements (name/address, product, ingredients, net weight, allergens, exemption statement if applicable) (healthvermont.gov).
6. Check zoning and landlord permission, register business with Secretary of State if applicable, and contact Department of Taxes to establish tax account if needed (healthvermont.gov).
7. Operate within your exemption or license limits, maintain compliance, and renew exemption or license yearly as required.

13. Official Resources

Useful official links (all Vermont Department of Health):

• Home-Based Food Licenses and Exemptions overview and guidance (healthvermont.gov)
• Food Manufacturing Licensing Exemptions PDF (healthvermont.gov)
• Temporary Food Service Establishments guidance (healthvermont.gov)
• Food Processing Establishments licensing info (healthvermont.gov)
• Retail Food Service Establishments (context for catering) (healthvermont.gov)
• Health & Lodging Program home page (healthvermont.gov)

Official Sources

This guide was compiled from the following official sources:

• www.healthvermont.gov
• www.healthvermont.gov
• www.healthvermont.gov
• www.healthvermont.gov
• www.healthvermont.gov
• www.healthvermont.gov

Important Notes

⚠️ Information on sales tax, online/delivery/shipping rules are not detailed in provided sources—entrepreneurs should verify with Vermont Department of Taxes or Health Department before proceeding.