Oregon Cottage Food Law 2026: $52,700 Cap, No License Needed

Oregon's cottage food exemption, ORS 616.723, lets a person make packaged foods that are not potentially hazardous in a residential dwelling and sell them without an Oregon Department of Agriculture, or ODA, food establishment license. Sellers must complete food handler training, use the required label and keep annual gross sales at or below the cap, which ODA set at $52,700 effective March 13, 2026. The law allows sales directly to the end user in any manner, including online and through the mail, and sales to retailers that display the food separately. This guide covers what you can sell, how you can sell, labeling and when you need a license instead.

Disclaimer: This page is general information, not legal advice. Laws change, and local zoning, HOA and tax rules vary. Confirm current requirements with the Oregon Department of Agriculture Food Safety Program, or with an attorney, before you start selling.

Quick facts

No ODA license is needed if you meet the exemption's conditions. ORS 616.723(2)
The annual gross sales cap is $52,700, effective March 13, 2026, and is adjusted each year for inflation. OAR 603-025-0320 (2026 order); ORS 616.723(2)(d), (9)
Everyone preparing the food must hold a food handler certificate. ORS 616.723(2)(e)
You may sell directly to the end user in any manner, including from home, online, through the mail and at events. ORS 616.723(4)
You may sell packaged foods to a retailer that stores and displays them separately and marks them as homemade. ORS 616.723(5)

What the law calls it

The statute describes a food establishment located in a residential dwelling. ODA's rule calls it a "Cottage Food Establishment" operating from a "domestic kitchen." ORS 616.723(2); OAR 603-025-0320 (2026 order)

Foods you can sell

Only these packaged foods that do not need time or temperature control: baked goods; confectionery items, including freeze-dried ones; coffee beans; dried tea, spice or seasoning blends from commercial food; popcorn; jams, jellies and fruit butters made only with fruit with a natural pH below 4.60; honey or honey products using commercial food; syrups; nut mixes; repackaged freeze-dried, dried and dehydrated foods from commercial food; and powdered drink mixes from commercial food. OAR 603-025-0320 (2026 order)

Foods you cannot sell

Foods that need time or temperature control for safety, foods with marijuana or marijuana items and anything not on the list above. OAR 603-025-0320 (2026 order)

Sales limit

$52,700 in annual gross sales, effective March 13, 2026. The statutory base is $50,000, adjusted each year by the West Region Consumer Price Index and rounded to the nearest $100. OAR 603-025-0320 (2026 order); ORS 616.723(2)(d)
Keep records of annual sales and the foods you make for at least three years. ORS 616.723(11)

Training and registration

Each person who prepares food for sale must complete a food handler training program and hold a certificate under ORS 624.570. ORS 616.723(2)(e)
There is no ODA license for exempt sellers. On request, ODA will issue a unique identification number to use on labels in place of your address, and it may charge a fee for this. ORS 616.723(7)
Contact your local ODA food safety inspector to confirm you qualify. ODA: What Can I Do Without a License?

Where and how you can sell

Directly to the end user in any manner, including from the home, online, through the mail and at events. ORS 616.723(4)
Online and mail: allowed. ORS 616.723(4)
Shipping to other states: the law allows sales through the mail but does not say whether that includes buyers outside Oregon. Ask ODA before shipping out of state. ORS 616.723(4)
Retailers: packaged foods may be sold to a retailer, including a coffee shop, if it stores and displays them separately and marks them as homemade and not prepared in an inspected food establishment. ORS 616.723(1), (5)
You may not sell to institutions, including caterers, schools, day care centers, hospitals, nursing homes, correctional facilities or restaurants. ORS 616.723(3)

Labeling rules

The label must say: "This product is homemade, is not prepared in an inspected food establishment and must be stored and displayed separately if merchandised by a retailer." ORS 616.723(6)(a)
It must also show your name and phone number; your address or ODA identification number; the product name; ingredients in descending order by weight; net weight or volume; allergen warnings; nutrition information if you make a claim; and whether pets live in the home and the potential for pet allergens. ORS 616.723(6)(b)

Zoning, HOAs and local rules

ORS 616.723 exempts you from ODA licensing, not from city or county zoning or business rules. Check with your city and county.
Check your HOA documents, since the state does not review private covenants.

Inspections

There is no routine licensing inspection, but you must keep the kitchen clean and sanitary, and ODA may require a license if you refuse to follow its sanitation rules. ORS 616.723(8); OAR 603-025-0320 (2026 order)
ODA may not bar sales because pets live in the home, but pets must stay out of the food preparation area. ORS 616.723(10)

When you need a license instead

You need an ODA food establishment license for sales above the cap, foods outside the list or sales to restaurants and other institutions. ODA may also require one if you refuse to follow its sanitation rules. ORS 616.723(2), (3), (8)

Timeline

2015: the Legislature created the exemption (2015 c.453). It was later amended in 2017, 2019 and 2023 (2023 c.211). ORS 616.723
March 13, 2026: ODA raised the cap from $51,200 to $52,700. OAR 603-025-0320 (2026 order)
Oct. 13, 2026: this page was last reviewed against the ORS and ODA rules.

Frequently asked questions

Do I need a license to sell cottage food in Oregon?

No, if you meet the conditions of ORS 616.723, including food handler training, labeling and the sales cap. Source: ORS 616.723(2).

What is Oregon's cottage food sales cap in 2026?

$52,700 in annual gross sales, effective March 13, 2026. Source: OAR 603-025-0320 (2026 order).

Can I sell cottage food online in Oregon?

Yes. You may sell directly to the end user in any manner, including online. Source: ORS 616.723(4).

Can I mail cottage food in Oregon?

Yes. The law allows sales through the mail. Source: ORS 616.723(4).

Can I ship cottage food to other states from Oregon?

The law does not say. Ask ODA before shipping out of state. Source: ORS 616.723(4).

Can I sell cottage food to stores in Oregon?

Yes, packaged foods, if the retailer displays them separately and marks them as homemade. Source: ORS 616.723(5).

Can I sell cottage food to restaurants in Oregon?

No. Sales to restaurants, caterers, schools and other institutions are not allowed. Source: ORS 616.723(3).

Do I need food handler training in Oregon?

Yes. Everyone who prepares the food needs a food handler certificate. Source: ORS 616.723(2)(e).

Can I sell cottage food if I have pets?

Yes, but pets must stay out of the food preparation area, and the label must disclose pets in the home. Sources: ORS 616.723(10); ORS 616.723(6)(b).

What foods can I sell under Oregon's cottage food law?

Packaged baked goods, confections, coffee beans, certain jams and jellies, honey, syrups, nut mixes and other listed foods. Source: OAR 603-025-0320 (2026 order).

Official sources

This page is general information, not legal advice. Laws change, and local zoning, HOA and tax rules vary. Confirm current requirements with the Oregon Department of Agriculture Food Safety Program, or with an attorney, before you start selling.

Oregon Cottage Food Laws