Current Law Details
Act 42 (HB 401, July 2025) tripled cap from $10,000 to $30,000. Pioneer in home baker laws (first state, year unverified). Two tracks: Cottage food operators under $30,000/year need free training + annual registration (no license/inspection). Home bakers over $125/week need $100 license + inspection. Online sales allowed (own website/mail order, direct-to-consumer only). New registration required Oct 2025-Jan 15, 2026, then annually by Jan 15.
Registration & Training
📋Registration
- Required
- Yes
- Type
- registration
- Cost
- Free
- Inspection Required
- No
🎓Training
- Required
- Yes
- Type
- Free online training through Vermont Department of Health
- Cost
- Free
- Validity Period
- Annual renewal via exemption filing
Labeling Requirements
Required Statement
"Made in a home kitchen not inspected by the Vermont Department of Health"
Additional Label Elements
- ✓Product name
- ✓Ingredients list
- ✓Allergen information
- ✓Producer's name and address
- ✓Net weight or volume
Allowed Sales Venues
Direct-to-consumer only. Allowed: online sales via own website with mail order delivery, farmers markets, roadside stands, special events and festivals, from home/personal property, fairs and craft shows. Prohibited: sales to restaurants, retail stores, licensed food establishments for resale, third-party marketplace platforms (Amazon, Etsy), interstate sales. Small Commercial Bakery License required for wholesale.
Shipping & Delivery
Shipping Options
- In-State
- Allowed
- Out-of-State
- Not Allowed
Delivery Methods
- Commercial Carriers
- Allowed
- Third-Party Delivery
- Allowed
In-state mail order delivery permitted. Online sales platforms, website sales, social media orders allowed if delivery within Vermont. No interstate sales (cannot ship across state lines). All sales must be direct producer-to-consumer.
Allowed Foods
Extensive list of non-potentially hazardous foods. Allowed: breads, cakes, cookies, pastries, candy, jams, jellies, dry herbs/spices, trail mix, granola, mixed nuts, flavored vinegar, popcorn, roasted coffee beans, dry tea, home-canned pickles/vegetables/fruits (must meet pH and water activity standards). Prohibited: baked goods requiring refrigeration (quiche, cheese danish, cheesecake), meats, seafood, canned vegetables (unless meeting pH standards), fermented foods, dried vegetables, fruit butters, juices, fresh produce, dairy products, any food requiring refrigeration or time/temperature control.
Recent Legislative Updates
Act 42 (H.401)
Effective: July 1, 2025
Tripled income caps from $10,000 to $30,000 for cottage food operations. Simplified registration process. Added new online training requirement. Added annual exemption filing requirement. Unified cap for both cottage food and home bakery operations.
Important Warnings & Notes
- ⚠️New annual registration system launches October 2025 - first filing deadline January 15, 2026
- ⚠️Free online training must be completed before filing exemption
- ⚠️Interstate sales prohibited
- ⚠️No wholesale to restaurants/retail without separate license
- ⚠️Two-tier system for home bakers may cause confusion ($125/week threshold)
- ⚠️Product review available for borderline/unique products
Research Sources
This information was compiled from the following sources (Last updated: 2025-10-07):
- •Vermont Department of Health - Home-Based Food Licenses and Exemptions
- •Vermont Legislature - Bill Status H.401 (Act 42)
- •Vermont Department of Health - Guide to Opening a Home-Based Food Business
- •North Star Monthly (July 2025)
- •WCAX News (July 14, 2025)
- •VTDigger (March 18, 2025)
- •Forrager.com - Vermont
- •Institute for Justice - Vermont
Important Legal Disclaimer
This information is for educational purposes only and should not be considered legal advice. Cottage food laws change frequently and vary by local jurisdiction. Always verify current regulations with your state and local health departments before starting your business.
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