Canada Post has announced plans to increase the price of domestic stamps by 25 cents in 2025, bringing the cost to $1.24 per stamp when purchased in booklets, coils, or panes.
The new rates, if approved would take effect on January 13, 2025.
The increase comes as Canada Post reports facing significant financial challenges, including a steep decline in letter mail volume, which has dropped by 60 per cent over the last two decades.
In 2006, Canada Post handled 5.5 billion letters annually, but by 2023, that number had fallen to just 2.2 billion. Despite this, the number of addresses served by the postal service has grown by more than 3 million during the same period, adding to the company’s operational costs.
From 2018 to 2023, Canada Post reported a total loss of $3 billion before taxes, including a $748 million loss in 2023 alone.
The proposed rate increase is expected to generate around $80 million in additional revenue for the corporation in 2025, which will help offset some of these financial pressures.
The average Canadian household is expected to see an additional cost of just $2.26 per year, while small businesses may see an increase of approximately $42.17 annually.
In addition to domestic postage, the rate hike will also apply to other postal services, including U.S. and international letter-post, and domestic Registered Mail, with an average increase of 25 per cent.
The new rates are subject to regulatory approval and are still pending.
