Cottage food operation (license-exempt)
18 V.S.A. 4301 (cottage food definitions), 4303(a)(7), 4353(a)(3)(C), 4358(b)-(c); Vermont Department of Health Manufactured Food Rule (Chapter 5, Subchapter 1) Sections 4.1.4-4.1.6, 6.1-6.2.2 · Act 42 of 2025 (H.401), signed 2025-06-02, effective 2025-07-01; Manufactured Food Emergency Rules 25-E01 and 25-E02; permanent Manufactured Food Rule (25P033) effective 2026-01-15
Gross annual sales of $30,000 or less from the sale of cottage food products (18 V.S.A. 4353(a)(3)(C); Rule 6.1.1.2). Above that, a license is needed. Health Dept: a baker may also make up to $10,000 of other (non-bakery) processed foods under the separate food processor exemption (Rule 6.1.1.1). Not inflation-adjusted.
Annual licensing exemption filing (not a license)
Vermont Department of Health, Food & Lodging Program
Fee: No fee stated; exempt operators pay no license fee (Health Dept)
Official page
Health Dept 'License Exempt Food Processors and Cottage Food Operators Online Training' (free), before starting and every year after (Rule 6.2.2.1)
Examples you can sell
Food that does not require refrigeration or time or temperature control for safety (18 V.S.A. 4301; Rule 4.1.6). Other products may be sent to the Health Dept for a determination (Rule 6.1.2)
- Nonpotentially hazardous baked goods (bakery products that can be stored at room temperature, Rule 4.1.15)
- Candy
- Jams and jellies
- Dry herbs
- Trail mix
- Granola
- Cereal
- Mixed nuts
- Flavored vinegar
- Popcorn
Not allowed
- Foods that need refrigeration or time/temperature control for safety (TCS), e.g. meat, poultry, fish, eggs, dairy, cooked plant foods, tofu, raw sprouts, untreated garlic-in-oil (Health Dept)
- Refrigerated bakery items such as quiche, cheese danish, and cheesecake (Health Dept)
- Dehydrated meats (Health Dept)
- Dehydrated fruits and vegetables (Health Dept)
- Prepared meals sold direct to customers (need a Home Caterer License)
- Products containing THC (Rule 5.4.1 for licensed processors; not stated for exempt operations)
The statement your labels must carry
Made in a home kitchen not inspected by the Vermont Department of Health.
In type at least 10 point.
Home and Hearth Baker