Maryland hot sauce makers: cottage food, on-farm license or processing license

By Dwight Davis, Founder

Updated October 2026

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Three routes compared The on-farm license, for pepper growers The processing license A note on Maryland labels Confirm with the Office of Food Protection References

Not as a cottage food. Maryland's cottage food list is short and closed: non potentially hazardous baked goods, high acid fruit jams, jellies and preserves, fruit butters, hard candy and honey [1]. Hot sauce, pickles and other acidified foods are not on it. If you farm, Maryland's On-Farm Home Processing License does allow acidified foods "such as tomatoes and tomato products, pickled vegetables, and sauces" from a farm home kitchen, but it comes with commercial style requirements: a process authority, a scheduled process filed with FDA and Better Process Control School [2] [3]. Everyone else needs a processing license. This page compares the three routes.

Three routes compared

	Cottage food business	On-Farm Home Processing License	Processing License
Who	Anyone, from a home kitchen [1]	A farm owner, in a home kitchen on the farm [2]	Anyone, in a commercial kitchen [3]
Hot sauce allowed	No; not on the allowed list [1]	Acidified sauces listed [2]	Yes [3]
Fermented sauce	No [1]	Not allowed; fermented foods such as sauerkraut and certain pickles are excluded [2]	Yes, with refrigeration and plan review [3]
Process authority and FDA filing	Not applicable	Required for acidified canned goods [3]	Required for acidified foods [3]
Better Process Control School	Not applicable	Required [3]	Required [3]
Sales limit	$100,000 a year from October 1, 2026 [4]	Under $40,000 a year [2] [3]	None stated [3]
Annual fee	No license [1]	$30 [3]	$150 [3]
Issued by	No license; Maryland Department of Health checklist for retail sales [1]	Maryland Department of Health, Office of Food Protection [2] [3]	Maryland Department of Health [3]

The sales limit for cottage food is reported differently by different sources: University of Maryland Extension's page still says $25,000 [1], and the joint MDA and MDH value added foods document revised in July 2023 says $50,000 [3]. HB 535, approved April 28, 2026 as Chapter 320, raised the limit from $50,000 to $100,000 effective October 1, 2026, and the Legislature's record governs [4]. None of this changes the answer for hot sauce, which is not a cottage food at any cap.

The on-farm license, for pepper growers

The On-Farm Home Processing License is the closest Maryland comes to a home route for hot sauce. The Office of Food Protection's definitions document (revised September 2024) lists acidified foods among the allowed products and says they must be acidified to a pH of 4.6 or below during processing [2]. It adds that "Additional training and licensure are required for acidification" [2]. The joint value added foods document spells that out for acidified canned goods [3]:

You must be a farmer, with annual on-farm product sales under $40,000
A process authority's evaluation and a scheduled process filed with FDA
Completion of the FDA Better Process Control School course
Potable water, an approved sewage system and plan review

These are the federal acidified food requirements, applied to a farm kitchen. The filing page covers the FDA forms, and the BPCS page lists course options. Products that require refrigeration for safety, such as fresh salsa and pesto, are not allowed under this license [2], so a refrigerator only sauce does not fit. Potentially hazardous products sold at markets under it need a market license as well [3].

The processing license

A non farmer, or a farmer above $40,000, needs a Processing License from the Maryland Department of Health, which "Must meet commercial requirements" [3]. For acidified and pickled foods that means a commercial kitchen, a process authority, a scheduled process filed with FDA, Better Process Control School and plan review [3]. Fermented products such as sauerkraut need the processing license, a commercial kitchen, refrigeration and plan review [3]. Many first time makers rent a shared commercial kitchen or use a copacker rather than building one; see shared kitchen, copacker or your own space.

A note on Maryland labels

Cottage food labels carry the statement "Made by a cottage food business that is not subject to Maryland's food safety regulations." in at least 10 point type [1], but that statement belongs to cottage foods and does not apply to a licensed hot sauce. Licensed products follow the federal label rules, explained on what a hot sauce label must say.

Confirm with the Office of Food Protection

The Maryland Department of Health, Office of Food Protection, reviews food plans and issues both the on-farm and processing licenses; UMD Extension lists its contact as mdh.foodplanreview@maryland.gov and (410) 767-8400 [1] [2]. Your local health department can also answer questions about restricted products [1]. This page was last verified in October 2026.

To see which states allow hot sauce from a home kitchen, read selling hot sauce in your state.