Canada Post is proposing a significant increase in the price of domestic stamps for 2025, and it would be the biggest rate hike in over 10 years.
If approved, the price of a stamp purchased in a booklet, coil or pane will go up by 25 cents, bringing the total cost to $1.24. This comes less than a year after the last rate increase, when the price rose by 7 cents to $0.99 back in May.
Meanwhile, the price of a single stamp purchased individually would increase 29 cents, from $1.15 to $1.44.
According to Canada Post, this increase is part of a plan to deal with rising operational costs and the ongoing decline in letter mail volume. Over the last two decades, the Crown corporation says volumes have dropped by 60%, while the number of addresses it serves has grown by over 3 million, putting more strain on the postal service.
Here's everything you need to know about the proposed Canada Post rate increase for 2025.
How much is a stamp in Canada?
As of May 2024, the current postage rate for a standard letter is $0.99 when purchased in a booklet or coil, and $1.15 when purchased individually.
If Canada Post's proposed rate hike is approved, that rate would increase to $1.24 each when purchased in bulk or $1.44 for a single stamp.
Do Canada Post stamp prices go up every year?
No, Canada Post doesn't necessarily raise stamp prices every year. In fact, the last few increases have been spaced out over several years. Here's a look at the four price hikes that have occurred over the last decade:
- March 31, 2014: $0.85
- January 14, 2019: $0.90
- January 13, 2020: $0.92
- May 6, 2024: $0.99
As you can see, past increases have been relatively small and spaced out over several years. The last time we saw a hike was in May 2024, which brought the cost to $0.99 per stamp in a booklet. If the new rate is approved, it would jump by 25%, a much bigger leap than usual — and it's happening less than a year after the most recent change.
When are Canada Post stamp prices going up?
Pending regulatory approval, the new rates would come into effect on January 13, 2025. The good news is that this means the increase won't impact the busy holiday mailing season this year.
What does this mean for Canadians?
For most households, the yearly impact will be minimal, with Canada Post estimating that it will cost the average household an extra $2.26 per year. However, for small businesses that rely on mailing services, the increase is expected to have a bigger effect, with costs projected to rise by about $42.17 annually.
Why the big jump now?
Canada Post says it's kept increases to a minimum over the last decade, but it can no longer avoid raising prices to cover growing costs. In fact, despite decreasing letter volumes, the postal service has been serving more addresses, which is driving up costs.
President and CEO Doug Ettinger emphasized that this price increase is necessary to align stamp prices with the actual cost of delivering mail across the country, and that even "more needs to be done to address the significant long-term structural and financial issues facing the Corporation."
Are other postage rates affected?
In addition to domestic mail, this increase will affect U.S., international and registered mail services, as well as commercial rates — all of which can expect to see a corresponding increase of about 25% on average, to match the domestic increase.
Do stamps expire in Canada?
The good news is that if you already own permanent stamps, there's no need to worry — they will still be valid at the new rates in 2025.
Permanent stamps are marked with the letter P in the corner, and they are always accepted at the current domestic postage rate, no matter how much you paid for them or when you bought them. So, if you do lots of mailing, now might be a good time to stock up at the lower rate!
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Canada Post is planning a big stamp rate hike for 2025 — Here's what you need to know
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