Short answer: Most cottage food in Florida is exempt from sales tax because it is sold as grocery food. You generally owe sales tax only if you sell taxable items — like food prepared for immediate, on-site eating, heated foods, or soft drinks. Income tax is a separate question (Florida has none at the state level, but your profit is federally taxable).
Most cottage food is tax-exempt grocery food
Florida exempts food products for human consumption (groceries) from sales tax. The shelf-stable products a cottage food operation sells under Florida Statute 500.80 — breads, cookies, cakes, jams, jellies, honey, granola, dried herbs — are grocery items when a customer buys them to take home. That means, for the typical cottage food maker selling to-go, no sales tax is due.
When cottage food sales are taxable
The exemption is about the product and how it is sold. Sales can become taxable when:
- The food is sold for immediate, on-premises consumption — for example, served to eat at your booth or event table rather than packaged to take home.
- The item is heated or prepared to be eaten right away.
- You sell soft drinks or other specifically taxable items alongside your food.
If any of your sales fall into these buckets, you must register with the Florida Department of Revenue and collect and remit tax on those taxable sales — even if the rest of your products are exempt.
Sales tax vs. income tax — do not confuse them
These are two different taxes. Sales tax is what you may collect from customers on taxable sales. Income tax is what you owe on your profit. Florida has no state personal income tax, so there is no Florida income tax on your cottage food earnings. But your net profit is still federally taxable: you report it on Schedule C (Form 1040), and it may be subject to self-employment tax. Keep clean records of your sales and expenses either way.
How to register (if you sell taxable items)
Registration with the Florida Department of Revenue (DOR) is free. You can register online at floridarevenue.com, which gives you a Certificate of Registration and an Annual Resale Certificate. If everything you sell is exempt grocery food, you generally do not need to register — but the exempt-vs-taxable line depends on your exact products and sales channels, so confirm your situation with DOR.
Get it confirmed in writing
Sales tax is handled by the Florida Department of Revenue, not FDACS. If you are unsure whether your products are taxable, describe exactly what you sell and how, and ask DOR to confirm — then keep their reply on file.
📧 Contact via floridarevenue.com · ☎️ 850-488-6800. For income-tax questions, a CPA is your best resource.
This article is general educational information, not tax or legal advice. Verify your specific situation with the Florida Department of Revenue or a licensed tax professional before relying on it.
Frequently asked questions
Do I have to charge sales tax on cottage food in Florida?+
Usually no. Most cottage food — shelf-stable baked goods, jams, honey, bread, and similar grocery items sold to take home — is exempt from Florida sales tax as grocery food. You generally owe sales tax only if you sell taxable items, such as food prepared for immediate on-site consumption, heated foods, or soft drinks. If any of your sales are taxable, you must register with the Florida Department of Revenue and collect and remit tax on those items.
Are baked goods taxable in Florida?+
Bakery products sold to take home (as groceries) are exempt from Florida sales tax. The same bakery products become taxable when they are sold for consumption on the premises — for example, served to eat at your booth or table. Because cottage food is sold to-go, most bakery sales are exempt.
Do I owe income tax on my cottage food sales?+
Sales tax and income tax are different. Florida has no state personal income tax, so there is no Florida income tax on your cottage food earnings. However, your net profit is still taxable at the federal level — you report it on Schedule C (Form 1040), and it may be subject to self-employment tax. Keep records of sales and expenses.
Do I need a Florida sales tax number for a cottage food business?+
Only if you sell taxable items. Registration with the Florida Department of Revenue is free and can be done online at floridarevenue.com. If everything you sell is exempt grocery food, you generally do not need to register — but confirm your specific products with the Department of Revenue, because the exempt-vs-taxable line depends on how and where you sell.