Tennessee Cottage Food: The Essentials
Tennessee allows residents to make and sell certain homemade food products directly to consumers under a cottage food exemption — no commercial kitchen, no state food processor license. But it is not a paperwork-free operation. Tennessee is a Tier 2 state: you must register with the Tennessee Department of Agriculture (TDA) before your first sale. Registration is free and does not require a home kitchen inspection.
The most consequential rule for Tennessee sellers is the $20,000 gross annual sales cap. Understanding exactly how this limit is calculated is the single most practical thing to sort out before you start selling.
The $20,000 Cap — Exactly How It Works
Gross means total revenue, not profit. If you sold $22,000 worth of cookies but spent $7,000 on ingredients and packaging, your gross sales are still $22,000 — which exceeds the cap. The limit is on money collected from customers, before any deductions whatsoever.
Annual means January 1 through December 31 of each calendar year, resetting every year. There is no monthly sub-limit. A seller could make $18,000 in a single holiday season, as long as the full calendar year total stays under $20,000.
Sales refers to cottage food product sales specifically — not other income. If you also have a regular job or other business, that income does not count toward the cap.
Tennessee does not require you to submit sales reports to the TDA. But if a complaint is filed or you encounter a TDA inspector at a market, you may be asked to show you have stayed under the cap. A simple spreadsheet or receipt book with date, venue, and amount per sale is sufficient. Do this from day one.
What to Do When You Approach the Limit
Getting close to $20,000 is a decision point every growing cottage food seller in Tennessee reaches. Your options:
- Stop selling for the rest of the year — simplest if you are within a few hundred dollars near December
- Transition to a licensed food manufacturer — this requires producing in a licensed, inspected commercial kitchen. Shared-use commercial kitchens exist in Nashville, Knoxville, Memphis, Chattanooga, and other metro areas, often renting hourly. Once licensed, there is no sales cap.
- Move into a different product category — some sellers pivot to items not covered by the cottage food exemption but also not requiring full licensure (like produce, honey under the beekeeper exemption, or crafts)
Exceeding the cap without a license is a violation of Tennessee food safety law. The TDA can issue civil penalties and order you to stop selling. First-time violations that come to the TDA's attention typically result in a warning and compliance order — but this is not guaranteed, and the situation worsens with repeat violations or large exceedances.
How to Register in Tennessee
- Go to tn.gov/agriculture and navigate to Consumer and Industry Services
- Find and complete the cottage food producer registration form (available online and by mail)
- Registration is free
- No home kitchen inspection is required
- Keep your confirmation — farmers markets often ask for proof of TDA registration when you apply for a vendor spot
What You Can Sell
Tennessee permits non-TCS (non-Time/Temperature Control for Safety) foods — products shelf-stable at room temperature:
- Baked goods — cookies, cakes (no cream fillings), muffins, breads, biscuits, scones, brownies, bars
- Jams, jellies, and preserves — high-sugar, high-acid shelf-stable products; apple butter, fig preserves, muscadine jelly
- Candy and confections — fudge, pralines (a Tennessee market staple), brittles, hard candy, toffee, chocolate bark
- Granola and dry cereals
- Roasted nuts and nut mixes
- Dried herbs and spice blends
- Dry baking mixes — cookie mix, pancake mix, hot cocoa mix in sealed packaging
- Popcorn — plain, flavored, caramel corn
Not permitted: Custard pies, cream pies, meringue pies, cheesecake, anything requiring refrigeration, meat products, dairy products, home-canned low-acid vegetables.
Required Label Language — Word for Word
Every product must carry this exact disclosure on the label:
"MADE IN A HOME KITCHEN THAT HAS NOT BEEN INSPECTED BY THE TENNESSEE DEPARTMENT OF AGRICULTURE"
Your label must also include: your full legal name, complete home address (street, city, state, zip), product name, complete ingredient list in descending order by weight, net weight or volume, and allergen disclosure for any of the 9 major allergens present.
See: Printable Label Checklist and Full Labeling Guide
Where You Can Sell
- Farmers markets — Tennessee has strong markets statewide; Nashville, Knoxville, Chattanooga, and Memphis metro areas have particularly active cottage food vendor communities
- Direct from home — selling from your residence is permitted; confirm no HOA or local zoning restrictions apply to your property
- Community events, craft fairs, church bazaars, school fundraisers
- Roadside stands
Not permitted: Online sales, mail order, shipping, or selling through third-party resellers. All sales must be direct, in-person, between you and the end consumer.
Frequently Asked Questions
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Gross sales — total revenue before any expenses. If you collected $20,500 from customers across the year, you have exceeded the cap regardless of costs.
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Yes — the Nashville Farmers Market and most Tennessee markets accept cottage food vendors. You will need proof of your TDA registration when applying for vendor space. Contact each market directly for current availability and fees.
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You may use social media to advertise and announce your market schedule, but the actual exchange of money and product must happen in person. Many Tennessee sellers use Instagram to build a following and drive customers to their farmers market booth.
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Most grocery-type food items are exempt from Tennessee sales tax, but candy and some other items may be taxable. This is a question for the Tennessee Department of Revenue or a tax professional — cottage food law and tax law are entirely separate frameworks.
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Yes — pralines are clearly permitted. They are shelf-stable at room temperature, require no refrigeration, and fall squarely within the candy and confection category. Pecan pralines are one of the most popular cottage food items at Tennessee farmers markets.
Official Source
Tennessee cottage food law: Tenn. Code Ann. § 53-8-101 et seq. Administered by the Tennessee Department of Agriculture, Consumer and Industry Services Division.