Selling at a farmers market in Texas: the complete starter guide

The Texas opportunity

Texas is a great place to start a food business, and a market stand is the cheapest way in: no storefront, no big loan, just a table and a product people want. Texas gives you two clear legal paths to sell food at farmers markets: one is deliberately simple and affordable (cottage food), and the other gives you more options but requires permits and inspection. This guide walks you through both so you can pick the right one for your product and budget.

Two paths: cottage food vs permitted

Texas law recognizes two ways to sell food at a farmers market. The first is the cottage food exemption, which lets you make certain foods in your home kitchen and sell them directly to consumers (including at farmers markets) without a commercial license or health department permit. The second is the permitted path: you get a local health department permit, meet food-establishment rules, and sell through an inspected facility. Most first-time vendors start with cottage food because it's cheaper and simpler. But if your product isn't on the cottage food list (like fresh meat, seafood, or certain canned goods), the permitted path is your only legal option.

Cottage food: the simpler start

If your product qualifies for cottage food, you can start immediately and keep costs low. Here is what you need to know:

What you can make: You can produce any food EXCEPT meat and poultry, seafood and fish and shellfish, ice and ice products, low-acid canned goods, and products with CBD or THC, or raw milk. That covers a lot: baked goods, jams, dried fruits, pickles, pasta, granola, snacks, and much more. Since September 2025, refrigerated foods with time and temperature control for safety (TCS foods) are also allowed, but you must register with the Texas Department of State Health Services and include a safe-handling label on the product.

Income limit: You can earn up to $150,000 in gross annual income from cottage food sales. If you exceed that in a year, you must stop selling cottage food and switch to the permitted path.

Labeling: Every product must have a label that says THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION, plus your operation name, your address or a DSHS-issued unique ID, the product name, and a complete allergen statement. The label is how customers know the product is homemade and unregulated by a health department.

Training: You must complete an accredited food handler training course. This is a short online or in-person course that teaches basic food safety. Take it before you sell.

Who you can sell to: Sell directly to consumers at farmers markets, farm stands, food service establishments (restaurants and cafes), and retail stores. You can also sell online if you, an employee, or a household member personally delivers the order, which means a real person, not a shipping carrier. Sales must stay within Texas.

No inspection, no permit: Cottage food operations are exempt from local health department inspection and licensing. You do not apply for a health permit. You register any TCS products with DSHS, but that is not a permit.

The permitted path: when you need it

If you want to sell a product that the cottage food exemption does not allow (such as fresh meat, fresh seafood, or hot foods that aren't shelf-stable), you need a local health department permit. This path is more complex and costs money, but it opens up many more products.

Commercial or licensed kitchen: You produce food in a commercial or licensed facility that meets state rules. This might be a licensed commercial kitchen, your own permitted food establishment, or a shared commercial space. You cannot use your home kitchen for permitted operations.

Health department permit: Your city or county health department permits, inspects, and regulates you. The rules, fees, and processes vary by county and city. Some counties charge a small annual fee; others charge more. Inspection happens regularly to ensure food safety rules are met.

Taxes and sales permits: If you sell taxable items, you need a Sales and Use Tax Permit from the Texas Comptroller. Many baked goods from a qualifying bakery are exempt from tax, but prepared foods, candy, soft drinks, and most other items are taxable. You fill out a simple form with the Comptroller; there is no fee. Ask the Comptroller or your county health department which of your products are taxable so you charge the right amount and remit tax correctly.

Labeling and procedures: Your permit comes with food-safety rules about labeling, temperature control, storage, and handling. Follow them exactly.

Applying to a farmers market

Farmers market applications are independent of food licensing. The market itself decides who can vend and what they require of you.

Start your search: Look for farmers markets near you and read each market's vendor application and rules. Good markets fill up, so apply a full season ahead if you can. Some markets have a waiting list.

What to ask: When you contact a market, find out the booth fee, foot traffic levels, what products are already sold there, and whether they limit vendors in your category. Ask what documentation they want from you (proof of a permit, liability insurance, sampling policies, etc.). Different markets have different requirements and different vendor mixes.

Apply early and ask questions: Once you know your product qualifies (cottage or permitted), apply as soon as the market opens applications for the next season. Include anything the market asks for in the application. If you have questions about what they need, email the market manager.

County rules and first-season practicalities

Because local rules vary, here is what you need to know about variation and how to start.

County variation: If you are on the permitted path, the health department rules, inspection schedule, and fees are set by your county or city, not the state. A market in one county might require certain documentation or label wording that another county does not. Do not assume rules are the same county to county. Always ask your local health department. Even within the same metro area, two adjacent counties can have different requirements, different inspection frequencies, and different fee structures. What is routine in one place may require extra steps in another. This is why talking to your county health department before you invest in equipment or packaging is so important.

Pricing: Know your costs: ingredients, packaging, labels, booth fee, transportation, and any permits. Price high enough to cover these and pay yourself. Start with the average price for similar products at your market, then adjust up or down as you learn what customers will pay. You can change your price every week based on feedback. Talk to other vendors at the market to understand what works. Some vendors price premium; others compete on volume. There is no single right price, only what your customers at that specific market will buy.

Booth setup: A simple table and some baskets or shelves, plus a sign with your name and price list. You don't need much to start. Many vendors use white tablecloths, a banner with their name, and clear signage. Watch what other vendors do at the market and start simple. Cleanliness, clear labeling, and friendly presence matter far more than elaborate display. Your booth should make it easy for customers to see the product, read the label (especially the ingredient and allergen info), pick items, and ask you questions.

First season is learning: You will change your product, your packaging, your pricing, and your booth layout dozens of times in your first year. That is normal and expected. Each market is a chance to see what customers want and make a small change. Some customers will ask if you can make a gluten-free version or a spicier variety. Some will ask where to buy your products at retail stores. Some will request custom orders for events. Listen to these conversations and track what people ask for. This feedback is gold for planning your second season and for deciding whether to pursue the permitted path down the line.

Before you sell: confirm your local rules

The facts in this guide are current as of July 2026, but rules change and county rules vary. Before you make your first batch and book your first market, confirm your rules with the official sources. Contact:

Texas Department of State Health Services (DSHS): If you are on the cottage food path, DSHS runs the program. They can confirm what foods are allowed, walk you through the TCS registration if you make refrigerated products, and answer food-handler training questions. Reach out to DSHS or visit their website to ask questions specific to your product.

Your city or county health department: If you are on the permitted path, or if you want to know what permits cost and how inspection works, contact your local health department. They have the rules, fees, and application forms. They can also clarify what products are regulated in your area.

Texas Comptroller: If you sell any food, check with the Comptroller to confirm which of your products are taxable and get your Sales and Use Tax Permit. The form takes a few minutes and there is no fee.

Your farmers market manager: Once you have a market in mind, the manager can tell you what documentation they need from you, what rules apply at that specific market, and when the next vendor season opens.

These four sources are your baseline. Call or email them with your specific product and county. They know your local rules and can give you the right answer.

This is educational information, not legal advice. Texas's rules and figures change, so always confirm the current requirements with the Texas agencies named here before you sell.