Indiana Cottage Food Laws

Indiana cottage food laws incorporate some of the best features to encourage entrepreneurship. Indiana is among those states that make it easy to start your own cottage food business. Beginning in 2026, Indiana adds another law to allow home producers additional options.

You can decide today that you want to be a cottage food entrepreneur and actually start making money today.

HOW TO START YOUR COTTAGE FOOD BUSINESS IN INDIANA – LICENSING

Cottage food operations do not require a license or permit in Indiana. There are no tests or hoops to jump through. UPDATE: Starting in July 2022, an Indiana home based food vendor must have a food handler certificate.

Indiana cottage food laws do not require you to register or do anything other than begin selling.

However, they do have rules on what you can and can’t serve and require you follow and local codes for business licensing, zoning, etc…

Always contact your local city / county office and verify if a business license is required prior to starting.

This is simply done by calling the main number to your city and letting them know you are starting a cottage food business and ask if you need a business license.

Indiana home food sellers now operate under two overlapping systems:

1. The Home-Based Vendor (HBV) Law — IC 16-42-5.3
This is the established framework. It was expanded in 2022 through House Enrolled Act 1149, and the state’s official Home-Based Vendor Handbook was updated in Summer 2025. It’s detailed, well-documented, and focused on shelf-stable foods made in your home kitchen.

2. The 2026 Homestead Food Law — HB 1424 / Public Law 163
This is brand new. It was signed by the governor on March 12, 2026, and creates broader protections for “homestead vendors” and “small farm vendors.” It limits how much the state and local governments can regulate qualifying sellers.

📌 Quick take: Think of the HBV law as the detailed, tested rulebook that tells you exactly what you can make and how to label it. Think of the 2026 homestead law as a newer, broader shield that reduces regulatory red tape for qualifying sellers. Many sellers will still lean on the HBV handbook for practical product guidance while benefiting from the newer law’s protections.

---

Who Qualifies Under Each?

Home-Based Vendor (HBV)

You’re an HBV if you:

• Prepare food in the kitchen of your primary residence (or a permanent structure on the same property, like a barn or shed)
• Make, grow, or raise the product yourself
• Sell directly to the end consumer
• Complete the required food handler training

You cannot use a rented commercial kitchen or a shared community kitchen. Those count as food businesses that need a separate license.

2026 Homestead Vendor / Small Farm Vendor

The 2026 law defines a homestead vendor and a small farm in part by sales volume — qualifying sellers are those who do not exceed $1.5 million in gross sales from food products. This is a much larger ceiling than most home sellers will ever approach, which is exactly why the law is considered a big expansion.

Under HB 1424:

• The Indiana Department of Health may adopt certain food safety rules, but those rules cannot be applied to a homestead vendor or small farm vendor
• Local governments, local health departments, and the Health and Hospital Corporation of Marion County cannot impose extra rules, certifications, or licensing on these vendors beyond what the law allows

⚠️ Important: The full definitions, scope limits, and any product-specific carve-outs live in the final enrolled statutory text. Before you rely on the 2026 law for a specific product, confirm the exact definition of “homestead vendor” and check for any guidance the state issues on implementation.

---

What You Can and Can’t Sell

This is where most sellers have questions. The HBV handbook is your best friend here because it spells things out clearly.

✅ Generally Allowed (Non-TCS / Shelf-Stable Foods)

These foods don’t require refrigeration for safety:

• Cookies, cakes, cupcakes, and cake pops
• Breads, muffins, and many pastries
• Candy and confections (chocolates, caramels, hard candy, fudge)
• Traditional full-sugar jams, jellies, and preserves made from high-acid fruits (this is the only canned food allowed)
• Granola, trail mix, dried herbs, spices, and teas
• Roasted coffee beans (whole or ground)
• Honey, maple syrup, molasses, and sorghum
• Nut butters (peanut, almond, etc.)
• Dried pasta and crackers
• Whole, uncut produce

❌ Generally NOT Allowed (TCS / Potentially Hazardous Foods)

These require temperature control or carry higher food-safety risks:

• Meat products
• Most dairy-based foods, including cheesecake
• Cream pies and custard pies
• Pickled or acidified foods (pickles, salsa, pickled beans)
• Fermented foods
• Homemade hot sauce, BBQ sauce, or chutney made from scratch
• Low-sugar or no-sugar jams and jellies
• Anything that needs refrigeration to stay safe
• Foods intended for resale or wholesale

💡 A note on borderline items: Fruit butters, freeze-dried treats, vegetable-based breads (like zucchini bread), and unusual jams often depend on pH and water activity. If a fruit or vegetable is homogenously mixed into batter and fully baked, it’s usually fine. Fresh produce used as a garnish on top is not. When in doubt, contact your local health department or Purdue’s food program for testing.

---

Labeling Requirements

Every packaged product you sell as an HBV must include a label with:

1. Your name and physical address (a PO Box does not meet this requirement)
2. The common name of the food
3. Ingredients listed in descending order by weight
4. Net weight or volume by standard measure or count
5. The date it was processed
6. This exact statement, in at least 10-point type:

“This product is home produced and processed, and the production area has not been inspected by the state department of health. NOT FOR RESALE.”

Selling online? The label information must also appear on your website or market webpage.

Allergen labeling (milk, eggs, wheat, soy, tree nuts, peanuts, sesame, fish, shellfish) isn’t required — but it’s strongly encouraged and simply good practice for your customers.

---

Food Handler Certificate

Under the HBV law, you must:

• Obtain a food handler certificate from a certificate issuer accredited by the American National Standards Institute (ANSI)
• Provide a copy to the local health department in the county where you live
• Show it to the state or a customer upon request

Purdue Extension and several other providers offer approved courses. You do not need to complete the training in the specific county where you sell — one valid certificate covers you.

Note: Egg sellers are not required to hold a food handler certificate. And under the 2026 homestead law, one of the key changes is that qualifying vendors may be shielded from extra certification requirements — another reason to confirm which framework applies to you.

---

Where and How You Can Sell

The HBV law gives you flexible sales channels, with one firm boundary: everything stays inside Indiana.

You may sell:

• In person — at farmers markets, roadside stands, town festivals, fairs, or even your own storefront (as long as you’re physically present at the time of sale)
• By phone
• Online

You may deliver:

• In person
• By mail
• By a third-party carrier

The Indiana-only rule is absolute. You cannot ship or deliver to a customer located outside Indiana, even if they order online.

A few practical notes:

• Sales must go directly to the end consumer — no wholesale, no grocery stores, no reselling.
• Products cannot be sold on your behalf by an employee or family member. You’re the seller.
• Farmers markets, festivals, and fairs are not required to allow home sellers. Always check with the event organizer first. They may ask to see your food handler certificate or proof of liability insurance.

---

Inspections and Record-Keeping

Will someone inspect my kitchen?

If you follow the rules, your kitchen is not subject to routine inspections. However, the state may sample and inspect your products if:

• A consumer files a complaint, or
• Your product is believed to be misbranded or adulterated

If an imminent health hazard is found, the state can order you to stop production until it’s resolved.

What records do I need to keep?

• For any product you ship or mail, keep a record of the delivery address for at least one year after the sale.
• Records can be paper or electronic.
• You don’t need to track in-person sales the same way — just shipped orders.

📌 2026 update: HB 1424 limits how much local health departments can regulate qualifying homestead and small farm vendors. That said, complaint-based investigation and basic food-safety oversight are the kinds of protections most states keep in place, so don’t assume all oversight disappears. Verify the final text.

---

Key Differences: HBV vs. the 2026 Homestead Food Law

Feature	HBV Law (IC 16-42-5.3)	2026 Homestead Food Law (HB 1424)
Focus	Non-TCS, shelf-stable foods from a home kitchen	Broader protection for homestead and small farm vendors
Detail level	Highly detailed handbook (updated Summer 2025)	Broad deregulation language; details in final statute
Sales limit	Not defined by dollar cap	Up to $1.5 million in gross food sales
Local regulation	Local health departments enforce, can’t exceed state guidance	Local governments barred from extra rules, licensing, or certification
TCS rules	TCS foods prohibited	State TCS rules may not be applied to qualifying vendors
Best used for	Practical product-by-product guidance	Understanding your broader legal protections

The honest takeaway? The 2026 law is a meaningful expansion, but it’s not a signal that “anything goes” from your home kitchen. Whether a specific product is safe and legal still depends on the details. Treat the HBV handbook as your practical playbook and the 2026 law as your broader shield — and confirm the fine print before scaling up.

---

Your Pre-Launch Checklist

Ready to start? Run through this before your first sale:

• Confirm your product is allowed. Is it non-TCS and shelf-stable? If it’s borderline (fruit butter, freeze-dried, veggie bread), get it tested or ask your local health department.
• Make it at your primary residence — home kitchen or a permanent structure on your property. No rented or shared kitchens.
• Get your ANSI-accredited food handler certificate and file a copy with your county health department.
• Build a compliant label with all six required elements, including the exact home-production statement in 10-point type.
• Post your label online if you sell through a website or market page.
• Confirm your sales channels — in person, phone, or online, direct to the consumer only.
• Keep it in Indiana. No out-of-state shipping or delivery.
• Set up record-keeping for any shipped orders (one-year retention).
• Check event rules. Ask farmers markets and festivals about their policies and whether they require insurance.
• Verify zoning. HBV rules exempt you from food licensing, not local zoning ordinances. Check with your municipality.
• Review the latest guidance. Because the 2026 homestead law is so new, confirm the final statutory text and any state implementation guidance before relying on it for a specific product category.

COTTAGE FOOD lIABILITY INSURANCE

We live in a society that likes to sue. I can sue you for wearing that color shirt. No kidding! Of course I probably won’t win, but at the very least, it’s gonna cause you stress and some costs.

Liability insurance is a MUST.

It can be expensive – but several years ago, I found FLIP and by far, they gave me the most protection (coverage) and allow you to run your cottage food business without fear of being sued.

WHY? Because they provide the lawyers. And their lawyers… they are good!

Of course you should price shop around with your local agent or a national brand company, but rest assured, I’ve done all the legwork for you.

Alternatively, some folks opt to get bonded. You’ve heard the saying before: “licensed and bonded”. A bond is usually provided from an insurance bonding company or your own insurance company.

My first time, I got a bond at State Farm.

A bond is expensive comparatively but is less out of pocket in the beginning. Of course, it’s way, way less insurance / coverage too.

A $10,000 bond may cost $50 annually while a $2,000,000.00 liability policy may cost a few hundred a year.

No matter what you decide… knowing you’re insured against frivolous lawsuits is worth every penny.

INDIANA COTTAGE FOOD LAWS QUESTIONS AND ANSWERS

Indiana’s list of common questions with answers on Cottage Food Operations

INDIANA COTTAGE FOOD LAWS IMPORTANT LINKS

• Indiana Home Based Vendor (hbv) Basics
• Indiana Home Based Vendor State Laws
• Updated Indiana Home Based Vendor Law (July 2022)

INDIANA COTTAGE FOOD CONTACT

• Indiana Department of Health: 317-234-8569
  [email protected]
• Indiana Board of Animal Health: 317-544-2400 / [email protected]
• Indiana State Egg Board: 765-494-8510 / [email protected]
• Purdue Food Science Department: 765-494-8256

UPDATES TO INDIANA COTTAGE FOOD LAWS

From time to time, links, info, rules and numbers change, are updated or made obsolete.

Although I spend time daily with hundreds of vendors (many of which are cottage food businesses) – I can miss an update.

If you find a broken link or outdated state information… please let me know and I’ll send you a special thank you for helping me maintain the best site on the internet for the cottage food industry.

My goal has always been to have a central place that is absolutely free for those starting out or existing entrepreneurs who use their homes and kitchens to make real incomes.

Please send to [email protected] / or post inside the private VendorsUnited.com group.

Need more resources? Check it out HERE (Helpful Resources)

Take a peek at the best vendors on the planet, the community that rocks the food vending world: Vendors United…

Disclaimer

This information is provided to help those interested in starting a cottage food business. It is not a document made by the state government. This information is not provided as law nor should be construed as law. Always use the contact information for each state to confirm compliance and any changes.

Did we help you? Help us to share this information…