Corporate Gifting Budget Planner
Size a corporate gifting budget from headcount and per-recipient spend, and see how much is deductible under a per-recipient cap.
Budget & deductible split
Only spend up to the cap per recipient counts toward the deduction; anything above is not deductible. Caps and what counts toward them vary by country and change over time — confirm the current rule with a tax professional.
Budget and deduction, side by side
Corporate gifting has two numbers that rarely match: what you spend and what you can deduct. The total is simply headcount times per-recipient spend. The deductible portion is capped per recipient — so once your per-head spend passes the cap, every extra unit is coming out of after-tax money. Seeing both figures at once makes it easy to set a per-recipient budget with eyes open.
Use it to right-size a seasonal gifting program, compare a generous gift against a modest one across a large headcount, or justify where the non-deductible spend is going before you commit.
Frequently Asked Questions
How does the corporate gifting budget planner work?
Enter how many people you're gifting to and how much you plan to spend per recipient. The planner multiplies the two for a total budget, then applies a per-recipient deductible cap to show how much of that spend can be written off as a business expense and how much cannot.
What is the $25 business gift rule?
In the United States, the tax deduction for business gifts is limited to $25 per recipient per year — spend more and the amount above $25 per person simply isn't deductible. It's a long-standing figure that hasn't kept pace with inflation, so many companies knowingly spend more and treat the excess as non-deductible. Enter whatever cap applies where you operate.
Do incidental costs like wrapping and shipping count toward the cap?
It varies by jurisdiction. Under the US rule, incidental costs such as engraving, gift wrapping, and shipping generally don't count toward the $25 limit as long as they add no substantial value. Because the treatment differs by country, this planner keeps it simple and applies your cap to the gift spend itself — check the detail with a tax professional.
Are gift cards and branded swag treated the same as gifts?
Often not. Cash and cash-equivalent gift cards to employees are usually taxable compensation rather than deductible gifts, and low-cost branded promotional items can fall under separate advertising rules. This tool models the straightforward per-recipient gift case; confirm the classification of cards and swag separately.
Can I use this for client gifts and employee gifts together?
You can run it for any group, but the rules can differ between clients and employees, so it's cleaner to plan each group separately — one run for clients, another for staff — using the cap that applies to each. That keeps the deductible and non-deductible totals meaningful.
Educational estimate only — not tax or accounting advice. Deductible caps, what counts toward them, and the treatment of gift cards, branded items, and employee gifts vary by country and change over time. Confirm the current rules with a qualified tax professional.