A Comprehensive Guide to Homemade Food Business in Texas
Sales of bakery items at a place of business other than a bakery are typically taxable. Tax is not due, however, on bakery items (regardless of size, whether whole pies, for example, or individual portions) when sold non-heated, without plates or eating utensils, or without any taxable meal.
Contact the Comptroller with all questions regarding sales tax. A seller must collect sales tax on all taxable sales. The seller is required to obtain a sales tax permit, file sales tax returns and remit the tax to the comptroller.
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*The information contained in this fact sheet is not intended as legal advice. Consult with your attorney or a tax professional accordingly.
The cottage food law has no effect on federal income tax law. Normal IRS rules apply.
Counties can require a rendition tax on your business assets and equipment; application and enforcement vary county to county.