There’s something extra special about giving a gift that’s wrapped with care — and a handmade tag is the perfect finishing touch. Creating your own DIY Christmas gift tags is not only fun but also adds a meaningful, personalized element to every present under the tree. Whether you’re crafting with kids, decorating packages for clients, or simply looking for a festive creative outlet, handmade tags turn ordinary wrapping into something extraordinary.

From minimalist cardstock designs to intricate felt cutouts, this guide will walk you through how to make homemade Christmas gift tags using materials you already have, plus a few essential craft tools to make cutting and shaping easy.

Why Make DIY Christmas Gift Tags

Store-bought gift tags are convenient, but homemade tags offer something deeper — creativity, character, and thoughtfulness. With DIY gift tags, you can:

• Personalize your wrapping for friends, family, or customers.
• Use up leftover craft supplies like paper scraps, ribbons, and felt.
• Save money while still creating beautiful, high-quality packaging.
• Enjoy a relaxing, holiday-themed project.

Plus, when you pair your creativity with the right cutting tools, you can craft designs that look professional enough to sell or gift proudly.

For example, precision craft knives — like the K1 Light Duty Knife or K18 Cushion Soft Grip Knife — help you make clean, detailed cuts even on delicate materials like cardstock or felt.

Materials You’ll Need for DIY Gift Tags

You don’t need expensive materials to get started. Here’s a simple list of supplies you can mix and match for different styles:

• Cardstock or Kraft Paper: For a sturdy, rustic look.
• Felt Sheets: Add warmth and texture.
• Patterned Scrapbook Paper: Use holiday designs like plaid, holly, or snowflakes.
• Ribbons and Twine: Perfect for tying onto gifts.
• Markers and Gel Pens: For hand lettering or doodles.
• Stamps and Ink Pads: Create quick and consistent designs.
• Hole Punch: To thread ribbon through.
• Craft Knife or Precision Cutter: Essential for detailed shapes and layers. 

For smooth and precise cutting, a self-healing cutting mat helps protect your workspace while keeping blades sharp longer.

Easy Homemade Christmas Gift Tag Ideas

Here are a few homemade Christmas gift tag ideas for all skill levels — from quick paper cuts to layered, keepsake-worthy designs.

1. Minimalist Kraft Paper Tags. Start with simple kraft paper gift tags for a natural, rustic aesthetic. Use a rectangular or tag-shaped template, then cut clean edges using a precision hobby knife. Add white gel pen calligraphy or simple line art (like a star or tree). Tie with jute or red twine for a cozy farmhouse style.

2. Felt and Fabric Gift Tags. Add texture with felt or scrap fabric. Cut festive shapes like mittens, stockings, or Christmas trees. Use an Excel Blade Swivel Knife to follow curves easily. Sew or glue small accents (buttons, sequins, mini pom-poms) for charm.

3. Layered Paper Cutouts. Layer multiple sheets of paper to create a 3D tag. For instance, cut a snowflake design on white cardstock and glue it over glitter paper.  The K71 Index Finger Knife is ideal for clean, intricate snowflake shapes.

4. Hand-Lettered Tags. Even without cutting, you can make beautiful tags by practicing hand lettering or modern calligraphy. Use black or metallic markers on white or colored cardstock. Add a tiny ribbon and use a ruler for alignment.

5. Stamped and Embossed Tags. Use holiday-themed rubber stamps (trees, bells, snowmen) and embossing powder to make raised designs. Embossing tools add a professional finish. Combine with clean cuts for edges that match your intricate stamp work.

6. Recycled Christmas Card Tags. Cut old holiday cards into new tag shapes! It’s a sustainable and nostalgic idea — and a great way to practice upcycling crafts. Use a Light Duty Craft Knife for precision trimming.

How to Make Gift Tags at Home: Step-by-Step

1. Choose your material: Start with cardstock or kraft paper.
2. Trace your shape: Use a stencil, cookie cutter, or draw freehand.
3. Cut the tag: Use a craft knife for precision and clean corners.
4. Decorate: Add stamps, lettering, or layered paper cutouts.
5. Punch a hole: Thread ribbon, twine, or jute string.
6. Label your tag: Write the recipient’s name and a short message.

Materials:

• Cardstock or kraft paper
• Ribbons or twine
• Glue or double-sided tape
• Markers, pens, or stamps
• Hobby Knife (for fine details and clean cuts)
• Cutting Mat
• Hole punch

Instructions:

1. Cut your base shape: Rectangles, circles, and stars are timeless. Use a craft knife for crisp, even edges.
2. Add design layers: Cut out snowflakes, trees, or holly leaves from contrasting paper.
3. Decorate: Use calligraphy pens, embossing tools, or washi tape.
4. Punch and tie: Add a small hole at the top and loop ribbon or jute twine through.

Advanced DIY Christmas Gift Tag Styles

For those ready to take their projects up a notch, these ideas blend creativity with professional finishes:

• Layered Shadow Tags: Cut two or three layers with offset outlines for dimension.
• Mixed Media Tags: Combine paper, fabric, and wood for artistic textures.
• Die-Cut Tags: Use precision blades to mimic die-cut effects.
• Keepsake Ornament Tags: Add a string loop so your tag doubles as a Christmas ornament.

These ideas are perfect for gift wrapping small businesses or makers who sell handmade products during the holidays.

Unique Gift Tag Ideas

Looking to get creative? Try these unique handmade gift tag ideas that will make your presents unforgettable:

• Fabric Gift Tags: Use leftover felt or denim scraps and cut shapes.
• Layered Cutouts: Stack multiple cardstock layers for a 3D effect.
• Pressed Flower Tags: Add a touch of nature by gluing dried flowers onto your tags.
• Mini Ornaments: Create tags that double as keepsakes by attaching them with ribbon or hooks.

If you love sustainable projects, explore the Hobby Hub for more DIY crafts and eco-friendly inspiration.

How to Make Gift Tags on Computer

If you’re short on time or prefer a polished digital look, designing gift tags on your computer is a perfect option.

Steps:

1. Choose a design platform – Use Canva, Adobe Express, or Microsoft Word.
2. Set the size – Standard tags are 2” x 3.5” (business card size).
3. Add graphics or clip art – Snowflakes, ornaments, or calligraphy text.
4. Personalize – Type names or holiday greetings in your favorite font.
5. Print on cardstock for durability and cut them using a precision knife for neat edges.

For clean cuts and perfect corners, use retractable paper cutters designed for safe fine cutting and intricate trimming.

Upcycling Inspiration: Sustainable Gift Tag Ideas

Eco-friendly gifting is on trend — and DIY Christmas gift tags are an easy way to participate. Consider reusing materials like:

• Leftover wrapping paper scraps
• Grocery paper bags
• Fabric remnants or old clothing
• Magazine cutouts for collage-style designs

Use a Precision Cutting Kit to trim and shape these materials precisely while maintaining their rustic appeal.

Best Tools for Making DIY Christmas Gift Tags

Whether you’re cutting paper, felt, or leather, the right tools make all the difference. Here’s what professional crafters recommend:

• K1 Light Duty Knife: Ideal for detailed paper cutting.
• Swivel Knife: Perfect for curves and ornaments.
• Cutting Mat: Keeps surfaces safe and cuts clean.
• Sanding Sticks: Smooth out rough edges on layered designs.
• Rulers and Tweezers: Ensure precision and easy placement of small embellishments.

Explore Excel Blades’ full Arts & Crafts Tools Collection to stock up for your next project.

Creative Ways to Personalize Gift Tags

• Add photos of the recipient or mini Polaroids.
• Incorporate pressed flowers or dried leaves.
• Write funny or heartfelt holiday messages.
• Decorate with small charms, bells, or buttons.
• Use stencils and metallic gel pens for elegant finishes.

Small creative details transform a simple gift tag into something memorable.

FAQs

Q: What materials are best for homemade Christmas gift tags?
A: Cardstock, kraft paper, felt, and recycled holiday cards are all durable and versatile.

Q: What is the best knife for cutting gift tags?
A: A light-duty precision knife gives the most control and clean cuts for paper and thin materials.

Q: Can I make gift tags without a cutting machine?
A: Absolutely! A craft knife and ruler are often more precise for custom shapes than a machine — and perfect for small-batch crafting.

Q: How can I make my tags look professional?
A: Use a cutting mat, sharp blades, clean glue application, and matching color palettes. Embossing and layering techniques also add polish.

Excel Blades: Your Partner in Crafting Joy

When precision matters — whether cutting intricate snowflakes or trimming felt trees — Excel Blades provides the reliability and control every crafter needs. Based in Paterson, NJ, Excel Blades has been manufacturing high-quality knives, blades, and hobby tools in the USA for decades.

Precision tools are trusted by artists, educators, crafters, and hobbyists worldwide, offering consistent performance for every creative project. You can even shop in bulk or take advantage of wholesale pricing for educators, retailers, and creators — perfect for community crafting events or small business workshops. 

Final Thoughts

Making your own DIY Christmas gift tags is one of the easiest and most rewarding holiday crafts. It’s a simple way to show love, creativity, and sustainability — whether for family gifts or your small business packaging.

With a few materials and precision tools from Excel Blades, you can create keepsake-quality tags that stand out. So grab your paper, ribbon, and craft knife — it’s time to make every gift look as special as what’s inside.