Under IRC §274(b), a business can deduct up to $25 per recipient per year for business gifts; engraving, packaging and shipping are not counted toward the $25. For employees there is no $25 cap, small de minimis items such as a turkey or a logo mug or T-shirt are not taxable, while cash and gift cards are taxable wages.
The US rules at a glance
| Clients and business contacts | Deduction capped at $25 per recipient per year (IRC §274(b)) |
|---|---|
| Not counted toward the $25 | Incidental costs such as engraving, packaging and shipping |
| Employees | The $25 business gift limit does not apply |
| De minimis items for staff | Small items such as a holiday turkey or a logo mug or T-shirt are not taxable |
| Cash and gift cards | Taxable wages for employees |
| Primary source | IRS guidance on business gifts (Publication 463) |
Client gifts: $25 per person per year
The IRS lets a business deduct no more than $25 for business gifts to each recipient per year. You can spend more, of course; you just cannot deduct the part above $25. That is a deliberate choice many companies make: they treat the extra as marketing and goodwill.
The helpful detail is what does not count. Incidental costs such as engraving, packaging and shipping are not included in the $25. So a branded gift with a printed sleeve, a gift box and delivery to the client's door can still be measured against the gift's own cost.
Employee gifts: de minimis, not $25
Gifts to your own employees follow different rules. The $25 cap does not apply. Instead, the question is whether a gift is de minimis: small and occasional enough that accounting for it would be unreasonable. A holiday turkey, a logo mug or a T-shirt are the classic examples, and they are not taxable to the employee.
The big exception is cash and cash equivalents. Gift cards and money are taxable wages, whatever the amount. That is one reason physical holiday gifts remain popular with US employers.
Employees notice, too. In the Snappy Holiday Report 2025, 47% of US employees said they did not receive a holiday gift from their employer, while 67% would like one, and 62% value a note with the gift. In a 2025 Custom Ink survey of 1,051 people, 82% said they value a personalized gift more. Both are vendor surveys, so read them as an indication rather than a benchmark.
This is general information, not tax advice. Rules change, thresholds are indexed and every company's situation is different, so check with your accountant or tax adviser before you set your gift budget. Merryvent is a gift maker, not a tax firm.
Merryvent gifts for US clients and teams
We quote per project and do not publish prices. Here is how our formats map to the US rules.
Logo, packaging and shipping to the US
A logo is not required by the $25 rule, but personalization is what employees and clients remember. We print sleeves, embroider teddies and brand baubles, boxes, ribbons and cards.
Because packaging and shipping are not counted toward the $25, we list them separately on every quote. We can ship in bulk to your office or to individual home addresses from a CSV list in the US and worldwide — see gifts for remote teams. Transatlantic delivery takes longer than EU delivery, so plan earlier and ask us for dates for your specific destinations.
Deadlines for Christmas 2026 and beyond
By about 20 November 2026: stock advent calendars
Chocolate or tea calendars from stock with your printed sleeve (from 50 pcs) need to ship by roughly 20 November to be on desks by 1 December. Artwork approval comes first, so the earlier the better.
By about 1 December 2026: Christmas hampers
Order hampers (from 25 pcs) by around 1 December for delivery within the EU around 15–18 December. US deliveries need more time — ask us for a date before you commit.
January–August 2027: fully custom projects
Custom calendar shapes, custom box calendars and plush mascots for Christmas 2027 are ordered January–August. Early-bird terms apply to orders placed by 31 March 2027.
Not sure what is still feasible? Request a proposal
Send your headcount, budget per recipient and delivery countries via the proposal form. We confirm feasible formats and dates within 1–2 working days.
Tax limits, gift policies and the Client program
A tax threshold is only one of the limits that apply. Many companies also have an internal gift policy, and gifts to clients, public officials or suppliers can fall under anti-bribery rules, especially before a tender or contract renewal. Keeping gifts modest, branded and documented helps on both fronts; see compliance and gift policies (general information, not legal advice).
Our Client program is built around budget bands aligned to deductible limits such as the US $25 threshold above, with the gift, packaging, personalisation and delivery listed separately in the proposal. Sending to several countries at once? See corporate gifting by country and multi-address delivery.
Plan your US holiday gifts
Tell us how many recipients, whether they are clients or employees, your budget and where they are. We will suggest gifts that work under the $25 rule or, where you deliberately budget above it, formats that justify the spend. More: client gifts, employee gifts, gift finder.
Request a proposal or email hello@merryvent.com (phone +48 577 723 719) with your headcount, budget per recipient and delivery countries. You receive options, dates and a free digital mock-up within 1–2 working days.
Frequently asked questions
Does the $25 limit include shipping and packaging?
No. According to the IRS guidance, incidental costs such as engraving, packaging and shipping are not counted toward the $25 per recipient.
Is the $25 limit per gift or per year?
Per recipient per year, for all business gifts you give that person.
Can I give employees gift cards tax-free?
No. Cash and gift cards are taxable wages. Small physical de minimis items, such as a logo mug or a holiday turkey, are the ones usually treated as non-taxable. Check details with your accountant.
Is a chocolate advent calendar de minimis for employees?
It is a small, occasional physical gift, which is the type usually described as de minimis. Whether a specific item qualifies is a judgment your accountant should confirm.
Can you tell me the exact price per gift?
Prices depend on format, quantity, printing and delivery, so we quote per project instead of publishing a price list. Tell us your budget per recipient and we will propose options that fit under it, with packaging and delivery shown separately. Write to hello@merryvent.com or use the proposal form.