Indiana Home-Based Vendor Law: How to Sell Food From Home (Cottage Food)
Indiana Home-Based Vendor Law: How to Sell Food From Home (Cottage Food)
If you want to sell food you make in your home kitchen, Indiana has two laws that matter. Most people searching for indiana cottage food laws are looking for one of them: the home-based vendor law in IC 16-42-5.3, which remains in force under Public Law 49 of 2022. The other is the homestead vendor law created by House Enrolled Act 1424 (Indiana HB 1424), effective July 1, 2026. Both are on the books, and they overlap. This guide explains what each one allows, what it requires, and what to confirm before your first sale.
Disclaimer: This guide is informational content, not legal or tax advice. Food laws and agency guidance change, so confirm current requirements with the Indiana Department of Health (IDOH) and your county health department, and talk with a qualified attorney or CPA before you make a business decision based on this material.
Which Indiana law fits your business?
HEA 1424 did not repeal the home-based vendor law. An IDOH memo dated May 26, 2026 confirms that IC 16-42-5.3 remains in force alongside the new homestead vendor statute, IC 16-42-5.4. The two laws differ on sales limits, product types, and where you can sell, so the right answer depends on what you make and how you sell it.
| Home-based vendor (IC 16-42-5.3) | Homestead vendor (IC 16-42-5.4, from HEA 1424) | |
|---|---|---|
| Who it covers | Individuals making food in their primary residence | Homestead vendors and small farm operators selling food or meat from their property or at a farmers market |
| Sales cap | None | Gross sales of food or meat products of $1.5 million or less per year |
| Food types | Non-time/temperature-controlled (non-TCS) foods | Meat raised on the property and processed under IC 15-17-5, plus prepared foods, produce, natural sweeteners and fruit spreads |
| Where you can sell | Markets, events, roadside stands, online, or by delivery or third-party carrier directly to the end consumer | Directly to the end consumer from the property, small farm or farmers market; online sales and delivery allowed; no shipping outside Indiana |
| Certificate | Food handler certificate from an ANSI-accredited issuer | Food handler certificate for in-state shipping or delivery, plus sealed packaging |
The $1.5 million figure is a limit, not a reporting threshold. If your food or meat sales exceed it in a year, the homestead vendor law no longer covers you, and you should talk with IDOH and an attorney about your options.
Neither law described here creates a state-issued cottage food license. The home-based vendor law requires a food handler certificate, and homestead operators who comply are exempt from government licensing and inspection.
The home-based vendor law (IC 16-42-5.3)
This is the broader path for most home bakers and makers, and it has no annual gross sales cap. It covers the following:
- Foods: non-TCS foods, meaning foods that do not need time or temperature control to stay safe. Check each recipe against this test before you list it. Anything that must be refrigerated or held at a set temperature generally falls outside this category, so confirm borderline items with IDOH.
- Location: food made in your primary residence.
- Sales channels: in person at farmers markets and events, from a roadside stand, online, or by delivery or through a third-party carrier directly to the end consumer.
- Certificate: a food handler certificate from an ANSI-accredited issuer. Course price and length vary by provider, so compare providers and confirm the issuer's ANSI accreditation before you pay.
Not confirmed: whether a copy of your food handler certificate must also be filed with your county health department. This guide could not confirm that point from an official source. Ask your county health department directly before you start selling, and get the answer in writing if you can.
The homestead vendor law (IC 16-42-5.4, HEA 1424)
House Enrolled Act 1424 is 2026 Public Law 163. It was signed March 12, 2026, took effect July 1, 2026, and created IC 16-42-5.4 for homestead vendors and small farm operators. A homestead vendor prepares and sells food from its property, which can be a primary residence or agricultural property, or sells at a farmers market, and has gross sales of food or meat products of $1.5 million or less per year.
Allowed products include:
- Meat products raised on the property and processed under IC 15-17-5. Meat is also subject to federal rules from USDA FSIS, so confirm which rules apply to your operation.
- Prepared foods, including baked goods and candy.
- Produce, natural sweeteners, and fruit spreads. Some of these are subject to federal rules.
- Domestic chicken eggs, which bring in the Indiana State Egg Board. Contact the board to confirm what it requires.
Sales rules. Sales must go directly to the end consumer from the property, the small farm, or a farmers market. Online sales and delivery are allowed. If you ship or deliver within Indiana, you need a food handler certificate from an ANSI-accredited issuer and sealed packaging. Shipping outside Indiana is not allowed under this law. Interstate sales require IDOH manufactured food registration and compliance with 21 CFR 117.
Labels. Labels must show:
- The producer's name and address
- Ingredients in descending order by weight
- A description of the product
- Allergens
- A 10-point statement that the product was produced by a homestead vendor or small farm owner exempt from government licensing and inspection
Confirm the exact wording and format of that statement with IDOH before you print labels.
Compliance status. Operators who comply are not subject to additional state or local regulation, except where authorities enforce federal law. Operators who do not comply are treated as unlicensed retail food establishments.
Exclusions and federal thresholds. Pet food and alcohol are excluded from the homestead vendor law. If you sell raw produce above $25,000 per year, the federal produce safety rule applies.
Which path fits? Three common situations
- Baked goods and candy from a home kitchen, sold at markets and online in Indiana: the home-based vendor law fits well, with no annual sales cap, as long as your items are non-TCS. Homestead rules also cover baked goods, so you may qualify under either law. Choose the one whose rules are easier to meet for your sales volume and channels.
- Meat from animals you raised, processed under IC 15-17-5 and sold from your farm: the homestead vendor law is the path, subject to the $1.5 million limit and USDA FSIS rules.
- Selling to customers in other states: the homestead vendor law does not allow shipping outside Indiana. Interstate sales require IDOH manufactured food registration and compliance with 21 CFR 117. Confirm with IDOH whether this also affects your home-based sales.
Other Indiana requirements to check
If you searched for an indiana food license, the answer depends on your path, and food rules are only part of the picture. Indiana has no single comprehensive business license. Depending on your business, you may still need:
- Profession-specific licenses from the Indiana Professional Licensing Agency, where they apply.
- Local permits or zoning approval from your city or county. Home-based sales can run into zoning rules on home businesses, customer traffic, and signage, so check before you open a stand.
- A sales tax registration. If you sell taxable goods, you need a Registered Retail Merchant Certificate from the Indiana Department of Revenue, which costs $25. Indiana's state sales tax rate is 7%. Whether a given product is taxable is a question for the Department of Revenue. Register at the Department of Revenue registration page.
Business name. If you sell under a name other than your own, you need an assumed name filing. A registered LLC or corporation files a Certificate of Assumed Business Name (State Form 30353) through INBiz for $20 per name. Sole proprietors and general partnerships record the assumed name with the county recorder where the business is located, and county fees vary. You can download the form at the Secretary of State forms page.
Entity choice. Many home sellers start as sole proprietors. If you form an LLC, the Articles of Organization (State Form 49459) carry a $95 filing fee. The first Business Entity Report ($32) is due two years after formation, then every other year. An LLC's income passes through to its owners, who pay the individual adjusted gross income tax (2.95% for 2026) plus county local income tax. This is general information, not tax advice. Talk with a CPA before choosing a structure.
Step-by-step checklist
- List every product and sort each one: non-TCS or not, meat or not, eggs or not, raw produce or not.
- Choose a law: home-based vendor (IC 16-42-5.3) or homestead vendor (IC 16-42-5.4).
- Complete a food handler course from an ANSI-accredited issuer and keep the certificate.
- Ask your county health department whether a copy of your certificate must be filed with them. This point is unverified, so get a clear answer.
- Build compliant labels. If you use the homestead law, include the required statement.
- Register your business name or entity if needed, and get a Registered Retail Merchant Certificate if you sell taxable goods.
- Check local zoning, permits, and any profession-specific licenses.
- If you use the homestead law, track gross sales each year so you know whether you are approaching the $1.5 million limit.
Where to confirm current rules
- Indiana Secretary of State, Business Services Division: https://www.in.gov/sos/business/
- INBiz online filing: https://inbiz.in.gov/
- Indiana Department of Revenue: https://www.in.gov/dor/
- Indiana Small Business Development Center, for free advising: https://isbdc.org/
- U.S. Small Business Administration, Indiana district: https://www.sba.gov/district/indiana
- Indiana Department of Health and your county health department for food rules. Contact them directly for the current food rules and the open questions noted above.
Indiana's 2026 changes add a second path that may suit your products better than the one you first considered. Confirm the details with IDOH, your county health department, and a qualified attorney or CPA before you sell. This guide is informational content, not legal or tax advice.