How Much Should You Spend on a Coworker Gift Exchange?
Spend $25 on office coworkers, set one firm limit early, and remember gift cards carry tax rules.
Spend about $25 on a coworker gift exchange. Talker Research puts the coworker average at $38, so $20 to $38 fits most offices, in the Talker Research holiday gift survey. A coworker gift exchange is an office game where each person buys for one assigned coworker.
Family spending runs much higher. The National Retail Federation reports $890.49 in planned 2025 holiday spending per person, with $627.93 for gifts, in the National Retail Federation holiday survey.
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What do coworkers usually receive?
Talker Research reports $206 for a partner, $169 for a parent, $65 for a sibling, and $56 for a friend. Coworkers sit below all of them at $38, in the Talker Research holiday gift survey. That gap keeps the office exchange a small gesture, not a family-size gift.
Etiquette coach Maggie Oldham recommends a $25 office limit. Entrepreneur reports that $25 avoids junk gifts while protecting budgets, in the Entrepreneur guide to office Secret Santa. Oldham warns that a $5 gift against a $25 limit reads as stingy.
How do you set a limit that sticks?
Pick one firm number before names are drawn. A single maximum, such as $25 max, stops over- and under-spending. It also removes guesswork for people with less to spend.
Use these steps to lock it in:
- Agree on one maximum in writing before the draw.
- Draw names only after everyone accepts the limit.
- Shop close to the number, not far above or below it.
What if your holiday budget is already stretched?
A coworker gift is a small slice of total holiday costs. The National Retail Federation reports $890.49 in planned 2025 spending per person across gifts, food, and decor, in the National Retail Federation holiday survey. Gifts for family and friends account for $627.93 of that total.
Keep the office part separate from family plans. Join only if the limit fits your budget. A useful $20 item at the agreed limit beats a stretched $40 buy.
Are gift cards taxed differently?
Yes. The IRS states that cash and cash-equivalent benefits, including gift certificates, gift cards, and charge-card use, are never excludable as de minimis benefits no matter how little is involved, in the IRS Employer's Tax Guide to Fringe Benefits. Employers must treat them as taxable wages.
That rule matters for office swaps. A mug, book, snack set, or desk item stays a simple gift. A $25 card for the same amount creates payroll paperwork for the employer.
Pick a physical gift at the agreed limit and save the receipt for an easy swap.