Holiday and client gift budget planner
Plan gifts by recipient group: cost per group, total budget, how much is tax deductible under the IRS $25 rule, which recipients have gift limits, and the date to start your order.
Your gift program
Enter recipients and a budget per gift for at least one group to see the budget.
How much is a business gift deductible?
- You can deduct up to $25 per recipient per year for business gifts.
- Incidental costs such as engraving, packing and shipping do not count toward the $25 if they do not add substantial value to the gift.
- Items that cost $4 or less, permanently show your business name and are given out widely are not counted.
- A gift that could be treated as entertainment, such as event tickets, is generally treated as entertainment.
| Gift cost | Deductible per recipient |
|---|---|
| $15 gift | $15 |
| $25 gift | $25 |
| $60 gift with $12 shipping | $25 + $12 = $37 |
| $150 gift with $25 shipping and packaging | $25 + $25 = $50 |
Typical gift budgets by recipient group
- VIP clients: a premium, curated gift that reflects the relationship.
- Broad client lists: one useful branded item that everyone on the list receives.
- Employees: often one quality item for everyone, so no one is left out.
- Government, healthcare and financial services recipients: check gift limits first, then set the budget.
Check limits for any recipient group in the gift compliance checker.
Gift program timeline
Order by these dates from the order deadline planner for gifts in hand by Friday, December 11, 2026, with ground shipping and gifts in hand 2 business days early.
| Gift program | Send brief by | Approve proof by |
|---|---|---|
| Kits to individual addresses, 250 to 999 recipients | Thursday, November 5, 2026 | Tuesday, November 10, 2026 |
| Kits to individual addresses, 1,000 to 4,999 recipients | Tuesday, November 3, 2026 | Friday, November 6, 2026 |
| Gifts shipped to one address, without kitting | Tuesday, November 10, 2026 | Friday, November 13, 2026 |
See every holiday and appreciation date for the year in the recognition calendar.
Frequently asked questions
- How much can a business deduct for client gifts?
- $25 per recipient per year. Incidental costs like shipping and packaging are separate and do not count toward the $25.
- Are employee gifts tax deductible?
- Generally yes, as compensation, but they are taxable to the employee unless they qualify as de minimis. Gift cards are always taxable.
- Does shipping count toward the $25 limit?
- No, as long as it does not add substantial value to the gift.
- How much should we budget per client gift?
- It depends on the relationship. Use tiers so key clients get more and everyone gets something useful.
- When should we order holiday gifts?
- For gifts in hand by December 11, 2026, send the brief by early November. Use the order deadline planner for your date.
Sources
- IRS business gifts FAQ
- IRS Publication 463 (travel, gift and car expenses)
Verified October 2026.