Sending mail might be more expensive in 2025. Here’s what you need to know

Sending letters in the mail could be more costly next year as Canada Post looks at raising the price of domestic stamps.

The crown corporation announced on Friday that it is proposing a one-time increase of roughly 25 per cent on all stamps in order to keep up with the rising cost of providing letter mail service to Canadians.

If the new postage rates receive regulatory approval, stamps purchased in a booklet, coil or pane would increase by 25 cents, to $1.24 per stamp.

“Ensuring stamp prices better reflect the cost of providing the service is an important step forward and aligns with efforts being taken by postal services around the world,“ Canada Post CEO Doug Ettinger said in a statement.

“The reality is, however, that more needs to be done to address the significant long-term structural and financial issues facing the Corporation. We are taking action to manage our costs while working closely with the government on a path to ensure the postal service is there for Canadians today and tomorrow,” he added.

According to internal data provided by Canada Post, letter mail volumes have declined by 60 per cent over the last two decades from 5.5 billion letters in 2006 to 2.2 billion letters in 2023.

By that metric, Canadian households went from receiving approximately seven letters a week in 2006, to only two letters per week in 2023.

Despite the drop in volume, the corporation says the number of addresses served has increased by more than three million and continues to grow. Canada Post says its employees serviced 17.4 million addresses in 2023.

As a result, the corporation says it lost $3 billion before taxes in the last six years, including a $748 million loss in 2023.

Delivering fewer letters to more addresses has created significant cost pressures, the corporation says, while lamenting that stamp prices in Canada are among some of the lowest internationally. In the United States, the price of a standard-sized, rectangular envelope stamp is US$0.73 (C$0.98).

Canada Post estimates the average household will pay $2.26 more per year as a result of the increases. If approved, they will take effect on January 13, 2025, after the busy holiday mailing season.

“The transition to digital communications is placing pressure on postal services around the world, but we know that Canada Post remains an important way for Canadians to stay connected to one another while providing good jobs for thousands of Canadians,” Minister of Public Services and Procurement Jean-Yves Duclos said in a statement.

“The Government of Canada is actively working with Canada Post to secure the long-term viability of this essential service. We will ensure postal service is maintained as part of Canada Post’s mandate as a ‘service first’ organization focused on delivering the mail,” he added.

The new rates are expected to generate approximately $80 million of additional revenue for Canada Post in 2025.