Alabama
Cottage Food Laws in Alabama (2026 Guide)
Last reviewed July 26, 2026
By April Lee
The short answer
In Alabama you register once with your county health department: a food-safety certificate, a sample label, and the Cottage Food Review Form, no state fee, no renewal. There is no sales cap. You can sell direct in-state, including by mail, but not through stores or restaurants. Just keep your kitchen ordinary; commercial equipment can disqualify you.
License
One-time Registration
No license or permit
Training
Required
Sales Cap
None
No annual sales limit
Sales Tax
Yes
Candy is taxable
Inspection
No
Of your home kitchen
Income Tax
Yes
Report your net profit
Summarize & Save This Guide On
Add Traders Till As A Preferred Source on Google Prompt copiedDo I need a license to sell homemade food?
To sell cottage foods in Alabama you must complete a one-time registration registration before you start.
Do I need food-safety training?
Yes - Alabama requires a food-safety (food handler) course before you sell.
Operator must complete a food safety course approved by the Health Department. ADPH accepts the Alabama Cooperative Extension Service course developed for cottage food operations or any ANSI-accredited food safety program. The certificate must be kept current; when it expires the operator must retake the course. The certificate is reviewed by the Local County Health Department along with sample labels and the Cottage Food Review Form.
What foods can I sell from home?
You can sell shelf-stable foods that do not need refrigeration. Anything that must stay cold is generally off-limits.
"Cottage food" means a non-potentially hazardous food prepared in a person's home that does not require time/temperature control for safety and does not include meat, poultry, or fish. Fermented/preserved produce requires a pH verification from a processing authority or the Alabama Cooperative Extension Service. Freeze-dried items are not addressed anywhere in ADPH's cottage food page or the allowed-categories list above - freeze-drying is a distinct commercial process from the "dried and dehydrated" items already named, and ADPH's guidance gives no signal on whether its list is open-ended or closed. Confirm directly with ADPH before assuming freeze-dried products (home-processed or repackaged commercial freeze-dried product) qualify as cottage food.
You can sell
- Cakes, breads, Danish pastries, donuts, pastries, and pies
- Jam, jellies, and fruit preserves
- Candy
- Dried and dehydrated herbs, herb mixes, vegetables, or fruits
- Roasted coffee
- Dried baking mixes
- Fermented or preserved vegetables or fruit that do not result in the production of alcohol and that have an acidity level allowed by the department (per Chapter 1 of the Food Code)
You cannot sell
- Meat, poultry, and fish products
- Any potentially hazardous / time-and-temperature-control-for-safety foods
- Foods producing alcohol (e.g., uncontrolled fermentation)
- Sale through permitted food establishments, restaurants, retail stores, consignment, or health-department-permitted mobile units
Do I have to charge sales tax?
Your baked goods are generally taxable, so you will need to collect and remit sales tax.
Yes, cottage food is taxable in Alabama, but at the state's reduced grocery rate rather than the general rate. Since September 1, 2025, that food rate is 2% (down from 3%), and it covers your baked goods, candy, and soft drinks.
The only exceptions are alcohol, tobacco, and hot ready-to-eat food, which are taxed at the higher general rate instead.
Your city and county add their own local sales tax on top, and that part varies by where you sell, so your total rate depends on location. Register for a sales tax license through My Alabama Taxes before you start selling.
How much can I sell per year?
Alabama does not set an annual sales cap for cottage food operations.
The previous annual gross income limit was removed in the 2021 revision of the Cottage Food Law.
ADPH's official FAQ states "the limit for annual income under the law has been removed." Older sources citing a $20,000 cap are outdated.
Do I need a local business license?
Your city or county may require a local business license on top of state cottage food rules.
Registration is handled at the Local County Health Department (submit the Cottage Food Review Form, food-safety certificate, and sample labels). County review fees vary. A city/county business license may also be required; ADPH notes the county health department can provide written confirmation that the certificate and labels were reviewed to support obtaining a business license. State-sanctioned farmers' markets fall under the Farmers Market Authority (Alabama Dept of Agriculture & Industries).
Ask AI About Your Area
Want to check your own county or city?
I'm looking at this article on Traders Till about Alabama's cottage food law. I'd like to understand whether my county or city adds any requirements beyond the state rules (a local business license, health department registration, or zoning rule) for a home food business in [Your County or City].
Treat the answer as a starting point, then confirm it directly with your county or city government before you rely on it.
Will my kitchen be inspected?
No - Alabama does not inspect the home kitchen of a cottage food operation.
ADPH FAQ explicitly states the home kitchen is NOT inspected. The Local County Health Department only reviews the food safety course certificate and the product labels.
How do I label my products?
Every package must carry a specific cottage food statement, word for word, plus your standard label details.
Required on every package - exact wording
“This food is not inspected by the Health Department.”
Your label must also list
- The common or usual name of the food
- The name of the cottage food operation
- The home or P.O. Box address of the cottage food operation
- A list of the ingredients in the food in descending order of predominance
- A statement that the food is not inspected by the Health Department
- A disclaimer that the food may contain allergens
Where am I allowed to sell?
You can sell directly to customers in person, and in many states online or by mail within the state.
Sales must be DIRECT to consumers and the receiving person must be within Alabama (in-person, by phone, or online). Delivery allowed in person, through an agent of the producer, or by mail (in-state). All items must be labeled. Advertising (incl. social media) is allowed. NOT allowed: sales through restaurants/permitted food establishments, retail stores, consignment, or health-department-permitted mobile units. Farmers' market sales: consult the Farmers Market Authority (Alabama Dept of Agriculture & Industries).
In person
Home, farmers markets, farm stands, fairs, and events.
Online (in-state)
Online orders are allowed within the state only.
Shipping & delivery
Mail or deliver your products to customers.
Do I owe income tax on what I sell?
Yes - Alabama has a state income tax, so the profit from your sales is reportable on your state return.
On top of any sales tax, Alabama collects a state income tax. The net profit from your cottage food sales is taxable income, so keep clear records of what you earn and what you spend on ingredients, packaging, and supplies.
What this actually means in Alabama
Alabama makes registration almost frictionless. There is no state portal and no application fee: you take a food-safety certificate, a sample label, and the completed Cottage Food Review Form to your county health department, and once they sign off, you are set. There is no renewal cycle for the registration itself. The only thing you have to keep current is the food-safety certificate, and you only retake the course if it expires.
The 2021 law update also removed the old sales cap entirely, so there is no dollar ceiling to plan around as you grow. One less spreadsheet to maintain.
Here is the one thing I would flag before you get too comfortable: Alabama defines an eligible home as a primary residence with a kitchen and appliances designed for common residential use. If you have kitted out your kitchen with a commercial-style oven or other commercial equipment, which is common if you are doing higher-volume sourdough, you may no longer qualify as a cottage food operation under that definition. Confirm with ADPH before you invest in equipment like that.
Keep in mind sales have to be direct to the customer, and the customer has to be in Alabama, whether that is in person, by phone, or by mail. You cannot sell through a restaurant, retail store, or on consignment, and farmers market sales run through a separate authority, the Farmers Market Authority, so check with them too. As always, confirm the specifics with ADPH before you lean on any of this.
Official contacts
Cottage food program
Alabama Department of Public Health - Division of Food, Milk and Lodging
State agency
Alabama Department of Agriculture & Industries (Farmers Market Authority)
Sources & citations
- .gov Cottage Food - Division of Food, Milk and Lodging www.alabamapublichealth.gov/foodsafety/cottage-food.html
- Statute Code of Alabama ยง 22-20-5.1 - Cottage Food Production alison.legislature.state.al.us/code-of-alabama?section=22-20-5.1
- Statute NOTICE - State Sales and Use Tax Rate Reduced on Food Beginning September 1, 2025 www.revenue.alabama.gov/notice-state-sales-and-use-tax-rate-reduced-on-food-beginning-september-1-2025
- .gov What is Alabama's Individual Income Tax Rate? www.revenue.alabama.gov/faqs/what-is-alabamas-individual-income-tax-rate
- .edu Alabama Cottage Food Law: Basic Rules and Regulations www.aces.edu/blog/topics/cottage-food-law/alabama-cottage-food-law-basic-rules-and-regulations
- Statute State Sales and Use Tax Rates www.revenue.alabama.gov/sales-use/state-sales-use-tax-rates
Free PDF checklist
10 Things You Need to Do to Start a Cottage Food Business in Alabama
The exact, in-order steps to get selling legally in Alabama - printable and ready to check off.
You're in! Check your email to confirm, and your checklist is on the way.
Free PDF . No spam . Unsubscribe anytime