New Mexico eliminated the state cottage food permit in 2021 — but that does not mean you can start selling with nothing. Here is exactly what you do need, what it costs, and how to get it done in the right order.
Under the Homemade Food Act (effective July 1, 2021), NMED no longer issues or requires a cottage food permit. You do not need to apply for or receive permission from the state before selling. However, you must: (1) complete an ANAB-accredited food handler certification course, (2) register for a New Mexico Business Tax Identification Number with the Taxation and Revenue Department, and (3) comply with all labeling requirements before your first sale. Local permits may also be required depending on your county or city.
This is a meaningful simplification from the old system, which required a formal permit, detailed business plans, home inspections, and sample retention. Today, what stands between you and your first legal sale is a food handler card (which you can obtain online in about 90 minutes) and proper labeling. The business tax registration is free and takes minutes online.
| Requirement | Required? | Issuing Agency | Cost | Renewal | Where to Apply |
|---|---|---|---|---|---|
| Food Handler Card (ANAB-accredited) | Required | Any ANAB-accredited provider (NMSU, FoodSafePal, etc.) | ~$10–$30 | Every 3 years [VERIFY] | tap.nmsu.edu |
| State Cottage Food Permit | Not Required | NMED (no longer issues these) | — | — | N/A — eliminated July 1, 2021 |
| Home Kitchen Inspection | Not Required | NMED (complaint-based only) | — | — | N/A — inspection by complaint only |
| NM Business Tax ID (BTID / GRT Registration) | Required | NM Taxation & Revenue Department | Free | Ongoing (file GRT returns) | tax.newmexico.gov |
| State Business License (general) | Not Required | N/A — New Mexico has no general statewide business license | — | — | BTID from TRD covers your state tax obligations |
| LLC Formation (if applicable) | Optional | NM Secretary of State | $50 (one-time) | No annual report or fee | enterprise.sos.nm.gov |
| IRS Employer Identification Number (EIN) | Optional / Recommended | Internal Revenue Service | Free | Permanent — never expires | IRS EIN Application |
| Local / County Permit | Varies by Location | Your county or municipality | Varies [VERIFY locally] | Typically annual | Contact your local city/county offices |
| Albuquerque Growers Market Permit | Required (Albuquerque only) | City of Albuquerque Environmental Health | $50 (processed foods) [VERIFY] | Annual | cabq.gov/environmentalhealth |
| Voluntary NMED Permit (optional) | Optional | NMED Food Program | [VERIFY if program is active] | [VERIFY] | env.nm.gov/foodprogram |
Follow these steps in order. Steps 1 and 2 must be completed before your first sale. Steps 3–5 can be completed in parallel but should all be done before you start generating revenue.
Before you produce or sell a single item, you must hold a valid Food Handler Card from an ANAB-accredited program. This is an explicit requirement of the Homemade Food Act. The card proves you have completed food safety training covering proper food handling, hygiene, temperature control, and contamination prevention.
NMSU offers an online course specifically designed for New Mexico food handlers at tap.nmsu.edu. FoodSafePal and other ANAB-accredited online providers also qualify. Most courses take 60–90 minutes and can be completed entirely online. You will receive a downloadable card and certificate immediately upon passing. Keep this on file.
New Mexico does not have a traditional sales tax — instead it uses the Gross Receipts Tax (GRT), which is imposed on sellers, not buyers (though most businesses pass it through to customers). Any person or business selling goods or services in New Mexico must register with the New Mexico Taxation and Revenue Department and obtain a Business Tax Identification Number (BTID).
Registration is free and available online at tax.newmexico.gov through the Taxpayer Access Point (TAP). Once registered, you will file GRT returns — typically monthly or quarterly depending on your sales volume. GRT rates vary from approximately 5.125% to 8.6875% depending on your location. Note: most grocery food items are exempt from GRT — verify with TRD whether your specific cottage food sales qualify for the food exemption before your first filing. [VERIFY]
The Homemade Food Act preempts local governments from banning homemade food sales — but it does allow class A counties and home rule municipalities to operate a local permit system. Some jurisdictions in New Mexico may require a local business license or cottage food permit on top of the state requirements.
Always call your county government offices before you start selling and ask specifically whether a local business license or cottage food permit is required for home food sellers. This is especially important if you plan to sell at local farmers markets, which may also have their own vendor permit requirements independent of the county. Albuquerque sellers must contact the City's Environmental Health Department — the city operates its own food safety program and growers market vendors require a city permit ($50 for processed foods). [VERIFY current fee and requirements]
Most home food sellers in New Mexico start as sole proprietors — no registration required with the state. If you want liability protection, you can form an LLC with the New Mexico Secretary of State for a one-time $50 filing fee. New Mexico LLCs have no annual report and no annual fee, making it one of the most cost-effective states for LLC formation in the country.
If operating under a trade name (a business name different from your legal name), check whether a DBA (doing business as) filing is required with the Secretary of State. For either structure, an IRS EIN is free to obtain and recommended — it lets you open a business bank account and keep your personal and business finances separate. See the Start Your Business guide for full detail on business structure options.
Before your first sale, every product must have a compliant label with all required information — including the exact New Mexico disclaimer statement. Labels must appear on the physical package and, for online sales, on the product listing webpage. See the Label Requirements guide for the full required field list and exact disclaimer wording.
Once your food handler card is in hand, your BTID is registered, your local requirements are confirmed, and your labels are ready — you can start selling. You do not need to notify NMED, apply for a permit, or wait for approval. New Mexico's framework is genuinely one of the most seller-friendly in the country.
Routine home kitchen inspections are not required and NMED does not conduct them proactively. This is a major departure from the old cottage food system, which required a pre-opening home inspection before you could receive a permit.
NMED can and will investigate your home kitchen if they receive a complaint about improper labeling or a potential foodborne illness linked to your products. The NM Department of Health may also join investigations involving potential illness. If NMED finds a violation during an investigation, they are required to issue a written warning first before imposing a fine. Failure to comply with a written warning is a misdemeanor, with fines up to $100 per violation.
The practical takeaway: operate your kitchen as if it could be inspected at any time. Keep it clean, follow all production requirements, label correctly, and hold your food handler card. Sellers who operate professionally have nothing to fear from the complaint-based system.
The state preempts local governments from banning homemade food sales entirely — but allows counties and municipalities to operate their own permit systems. The specific rules vary by jurisdiction and are not always easy to find online. Always call before you start selling.
NMED has no jurisdiction here. The City of Albuquerque Environmental Health Department is the regulatory body. Growers market vendors selling processed foods need a city permit (~$50). Confirm all current requirements directly with the city before selling. Contact: cabq.gov/environmentalhealth
Requirements vary. Some counties may require a local business license or cottage food permit; others have none. Call your county government main line and ask specifically about requirements for home food sellers before your first sale. Don't assume — verify. [VERIFY which NM counties currently require a permit]
Each farmers market sets its own vendor requirements independently of state and county rules. Contact every market you plan to sell at directly — ask about their application process, vendor fees, insurance requirements, and any additional permits they require. The NM Farmers' Marketing Association (newmexicofma.org) is a good starting point.
Temporary event organizers may require proof of food handler certification and sometimes a temporary event permit from NMED or the local health department. Ask the event organizer what documentation they require from food vendors before applying for a booth.
Upload your food handler card, business registrations, and local permits — then get renewal reminders so nothing lapses and your business stays fully compliant.
Create Free Account to Use This Tool →Once your food handler card is in hand and your labels are compliant, you are ready. SellFood.com gives you a storefront, a label maker with the required New Mexico disclaimer pre-filled, and a marketplace of buyers looking for exactly what you make.