The draw takes four minutes. Someone pulls a name, one person walks up for the TV, and twenty-nine people clap and go back to their drinks.
In Canada there's a second catch nobody at the party hears about. The CRA treats that TV as taxable income for the person who won it. Here's what to give instead, what it costs for a team of 30, and the dates to order by.
The short answer. For a Canadian work Christmas party, give every employee the same non-cash gift instead of one big draw prize. The CRA says items won in an employee-only draw are taxable. A useful gift engraved with each person's name gets kept, costs about $19 a head at 10+, and nobody goes home empty-handed.
By Chen Deng, founder, LAMOSE, Calgary, Alberta
The tax catch the prize lists skip
Search for Christmas party door prizes and page one is gift-card companies, rewards apps and Pinterest boards. None of them is Canadian, and none of them mentions tax.
The CRA does. Its page on gifts and awards has a section titled "Gifts and awards you provide to your employees through a prize draw". The whole section is two sentences: "The CRA's administrative policy does not apply in this situation. If the draw is only open to employees of the company, then any item won is a benefit of employment and is taxable."
The policy it's switching off is the one most employers lean on at Christmas. The CRA allows "an unlimited number of non-cash gifts or awards with a combined total fair market value of $500 or less (including taxes) in the year." A gift every employee gets for the holidays can sit under that $500. A prize one person wins in a staff draw can't.
So a $600 TV becomes $600 of taxable employment income for the winner. That's a strange way to say thank you. We sell engraved gifts, not tax advice, so run your own plan past whoever does payroll. But the CRA's wording is plain, and it was last updated July 27, 2026.
Door prize options, ranked
We ranked the usual options by two tests: does everyone go home with something, and does the CRA's gift policy cover it?
| Rank | Option | Who goes home with it | How the CRA treats it |
|---|---|---|---|
| 1 | The same useful gift for everyone, engraved with each name | Everyone | Non-cash gift. Counts toward the $500 a year per employee. |
| 2 | A store gift card for everyone | Everyone | Non-cash only if it's for named retailers, can't be turned into cash, and you keep a log of each card. Otherwise taxable. |
| 3 | Small fun prizes in a staff draw | A few winners | Taxable to each winner. Fine as a laugh, small enough not to matter. |
| 4 | One big-ticket draw prize (TV, tools, a name-brand cooler) | One person | Taxable to the winner. Everyone else gets nothing. |
| 5 | Cash or a prepaid Visa or Mastercard | Anyone | Cash and near-cash. Always taxable. |
Ticket raffles are their own case. If staff pay for tickets, say a 50/50 for a charity, Alberta's AGLC is clear: "Any time you pay a price for a chance to win a prize, a raffle licence is needed." Other provinces have their own rules, so check before you sell a single ticket.
Why one gift for everyone beats a draw
A draw is fun for four minutes. A gift for everyone is still on desks in March.
It also fixes the room. Nobody watches the same three people win again. The new hire who started in November gets the same thing as the manager with twelve years in.
Make it something people use every day. A tumbler works because it goes on the desk, in the car and to the rink, and the name on it means it doesn't wander off to the staff kitchen.
Put their name on it, not your logo. A logo turns a gift into company swag. A name makes it theirs to keep. If you want the company on it, put a small line on the back: "Holiday 2026" and the team name.
What it costs for a team of 30
Our live prices drop as the order grows, and you can mix models: 2 pieces are 20% off, 3 are 30% off, 5 are 40% off, and 10 or more are 45% off. Engraving is included.
| Gift | Price each at 10+ | 30 people |
|---|---|---|
| Robson 14 oz bottle (hot 12h, cold 24h, sport cap) | $11.00 | $330.00 |
| Peyto 12 oz tumbler (hot 6h, cold 24h) | $14.85 | $445.50 |
| Grouse 16 oz tumbler (hot 6h, cold 12h, leakproof lid) | $19.25 | $577.50 |
Prices are before tax, and shipping is free over $65. Compare that with a $600 TV for one person: for about the same money, all 30 go home with their own named gift, and nobody picks up a taxable prize.
One honest note from our product pages: we recommend hand-washing. If your team lives on the office dishwasher, tell them.
Keep a draw? Keep it small
Some teams love the draw, and that's fine. Keep it for laughs, not for the main thank-you. A rotating trophy that lives on the winner's desk until next December becomes a year-long running joke, and the trophy stays with the company. If you do hand out draw prizes, keep them small, because each one is taxable to the person who wins it.
Order dates for a December party
If your party is in early December, work backwards from the party date, not from Christmas.
- 25 or more pieces: order by Friday, November 20. You get an artwork proof first, then 5 to 10 business days on the laser, then shipping.
- Smaller personalized orders: a digital proof within 24 hours, then 1 to 3 business days of engraving. Our last date for Christmas delivery is Friday, December 11, which is too late for most parties. Order in November.
- Names: get the spelling from HR, not from memory. Send it as a spreadsheet, one name per row.
A small company that orders from us every year put it this way in a September review: "Our second year working with them for merchandise for our small company. They are always a pleasure to work with, and the mugs and engraving are really high quality!"
For more on the year-end rules, see our guide to CRA rules for employee gifts and gift cards. If your team runs a gift exchange instead, here's our take on Secret Santa gifts that get kept.
Send us your name list for a quote → We reply within 24 hours, and the proof is free.
Frequently asked questions
What are good door prizes for a work Christmas party?
In Canada, the best door prize is often no draw at all: one useful non-cash gift for everyone, engraved with each person's name. If you want a draw too, keep the prizes small and fun, like a rotating trophy that stays with the company.
Are door prizes taxable in Canada?
Yes, if the draw is only for employees. The CRA says the gift policy "does not apply" to prize draws, and "any item won is a benefit of employment and is taxable." Check the reporting with whoever runs your payroll.
Are gift cards taxable for employees in Canada?
Cash and prepaid Visa, Mastercard or Amex cards are always taxable. A store gift card counts as non-cash only if it's for named retailers, can't be converted to cash, and you keep a log of each card given.
How much can an employer give employees tax-free in Canada?
Non-cash gifts and awards up to $500 a year per employee, including taxes, under the CRA's policy. The party itself is separate: a social event open to all employees that costs $150 or less per person isn't a taxable benefit.
Do I need a licence for a raffle at an office party in Alberta?
If anyone pays for a ticket, yes. AGLC says "any time you pay a price for a chance to win a prize, a raffle licence is needed." A free draw for staff isn't a paid chance, but the prize is still taxable to the winner.
What prize does everyone want?
Something with their own name on it that they'll use every day. That's why a named tumbler or bottle outlasts a gift card that's spent by January.
Skip the draw. Give everyone their own.
Send us your name list and we'll reply within 24 hours with a free proof. Ordering 25 or more for an early-December party? Order by Friday, November 20.
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