Effective Jan. 13, 2025, Canada Post has implemented a significant increase in postage rates, marking one of the largest adjustments in over a decade.
The new rates see the cost of a single domestic stamp rise to $1.44, up from $1.15. For stamps purchased in booklets, coils, or panes—representing the majority of sales—the price per stamp increases by $0.25 to $1.24.
This 25 per cent increase comes as Canada Post grapples with the rising costs of maintaining its letter mail services. The corporation cited ongoing challenges such as delivering fewer letters to an increasing number of addresses, compounded by inflationary pressures.
“While rate increases are necessary to align with the rising costs of providing services, we recognize the additional financial impact on our customers,” a Canada Post press release stated. “We are committed to minimizing this impact where possible.”
According to Canada Post, for the average Canadian household, the rate increase is estimated to cost an additional $2.26 annually. For small businesses, the expected annual increase is $42.17.
The rate changes were initially announced in September 2024 and received final regulatory approval in November following the process outlined in the Canada Post Corporation Act. As Canada Post operates solely on revenue from product and service sales, rate adjustments are essential to sustaining operations without taxpayer funding.
The new rates also apply to U.S. and international letter-post, domestic Registered MaiL, and commercial letter mail services. Permanent stamps, however, will continue to cover the cost of domestic postage, maintaining their value despite the increase.
The postage hike comes at a time when Canada Post’s delivery services have faced disruptions caused by the nationwide strike that began in November and lasted for more than four weeks. The labor action has impacted the timely delivery of mail across the country, adding to the frustrations of both individual and business customers. Critics argue that the timing of the rate increase, coinciding with service delays, could erode public trust in the postal service.
Canada Post acknowledges the challenges and reassures customers that it is working to address both the delivery disruptions and rising costs. However, the combination of higher postage rates and inconsistent service may present further hurdles for the corporation as it navigates this difficult period.