New York’s cottage food laws operate through the state’s Home Processor Exemption, which lets you make and sell certain shelf-stable foods from your home kitchen without a commercial food processing license. The program is run by the New York State Department of Agriculture and Markets, registration is free, there is no cap on how much you can earn, and sales are limited to buyers inside New York State.
Foods You Can Make and Sell
The exemption covers foods the state classifies as non-potentially hazardous: high in sugar, low in moisture, or high in acidity, and safe at room temperature. The approved categories are:
- Breads (no fruit or vegetable breads), rolls, cinnamon rolls, biscuits, bagels, muffins, doughnuts, cookies, and scones.
- Double-crust fruit pies only. Single-crust, custard, and nut pies are not allowed.
- Jams, jellies, and marmalades made with high-acid or low-pH fruits.
- Candy such as fudge, toffees, caramels, and hard candies. You can repack commercially made candy, but you cannot melt or work with exposed chocolate or chocolate-like coatings.
- Granola, trail mix, and granola bars, as long as any nuts are commercially roasted.
- Dried spices and herbs, but only by repacking or blending commercially dried product.
One point catches people off guard: you cannot dry your own herbs or fruits under this exemption. You can only buy them already dried and repackage or blend them.
Foods You Can’t Make Under the Exemption
Anything that needs refrigeration to stay safe is out. Beyond that, the state lists specific prohibitions:
- Meat, fish, and poultry products of any kind.
- Cheesecake, cream-filled pastries, cream pies, meringue pies, and anything with homemade buttercream or cream cheese frosting.
- Canned fruits and vegetables, including low-acid items like green beans or corn.
- Pickles, relishes, and sauerkraut.
- Vegetable oils, blended oils, and salad dressings.
- Pasta, both manufacturing and drying.
- Home-dried fruits.
- Precut fruits and vegetables, and any cooked items that spoil at room temperature.
The registration form notes this list is not exhaustive. If you’re unsure about a specific product, ask the Department of Agriculture and Markets before selling it. Selling something outside the approved list can cost you your exemption.
Where You Can Sell
You have wide latitude on sales channels. Farmers’ markets, farm stands, green markets, craft fairs, and flea markets are all permitted. You can deliver directly to customers’ homes and sell wholesale to local restaurants, cafes, and grocery stores.
Online sales are allowed, but only to buyers within New York State. You can build a website and take orders, but you cannot ship across state lines. The Department is explicit: all home-processed foods must be sold within New York. Shipping nationwide requires a licensed commercial kitchen.
Labeling Requirements
Every product needs a label with four pieces of information:
- The common name of the food, such as “Blueberry Jam” or “Oatmeal Cookies.”
- Your full name and complete physical address.
- All ingredients in descending order by weight.
- The net quantity of contents, by weight or volume.
The Department also directs home processors to include a phrase such as “Made in a Home Kitchen” or “Made at Home by [Your Name]” on every label, at a minimum font size of 1/16 of an inch. That statement tells buyers the food came from a residential kitchen rather than an inspected commercial facility.
Allergen Disclosure
Federal law requires clear identification of all nine major food allergens: milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soybeans, and sesame. Sesame was added by the FASTER Act, effective January 1, 2023.
You can meet the requirement either by naming the allergen source in parentheses inside the ingredient list (for example, “flour (wheat)”) or by adding a separate “Contains” statement immediately after the ingredient list. Either works, as long as the allergen is unmistakable to someone scanning quickly.
How to Register
Before you sell anything, submit a Home Processor Registration Request (Form FSI-898c) to the Department of Agriculture and Markets. Registration is free, and approval generally takes about two weeks.
With the form, you’ll submit:
- A complete list of every product you plan to sell, with ingredient breakdowns for each.
- Water source information. Municipal water is straightforward. If you use a private well, you must include a certified lab test showing negative results for total coliform and E. coli.
- The sales venues you plan to use, such as farmers’ markets, online, or wholesale accounts.
Well test results must be attached to your application, so arrange testing before you submit. To add products later, send in another copy of the same form listing the additions.
Local Zoning
State registration does not override your municipality’s zoning rules. The Department specifically warns applicants to check with local zoning officials before starting any home-based food business. Some towns and HOAs restrict commercial activity in residential areas, and a state exemption will not shield you from a local zoning violation.
Taxes and Insurance
The exemption handles food safety licensing only. Cottage food income is self-employment income to both the IRS and New York State. If your net self-employment earnings hit $400 or more in a year, you must file a federal return with Schedule SE to pay Social Security and Medicare taxes, even if you owe no income tax.
Most foods are exempt from New York sales tax, which simplifies things for baked goods, jams, and similar items. Certain prepared foods or candy may be taxable depending on how the state categorizes them; check with the New York Department of Taxation and Finance if your products fall into a gray area.
Insurance is the other gap. Standard homeowners policies contain business activity exclusions in their property, liability, and medical payments sections, so a claim tied to your food business will likely be denied. Product liability insurance for small food businesses starts around $25 per month and covers claims that your food caused illness or injury. It is not required under the exemption, but without it, one bad batch can reach your personal assets.
Inspections and Keeping Your Exemption
The state does not conduct routine inspections of home kitchens. Kitchens are reviewed on a complaint basis only. If no one reports a problem, no one shows up.
When a complaint does come in, the Department has authority to investigate. Selling unapproved products, skipping labeling requirements, or operating in unsanitary conditions can lead to revocation of your certificate. The state expects you to keep your kitchen clean and sanitary during production, maintain accurate records of your recipes and processes, and stay within the approved product list.