Canada Post Letter Rate Increases

Summary#

This is a proposed set of changes from Canada Post to postage rules made under the Canada Post Corporation Act. If adopted, many letter-mail and registered-mail rates would rise by about 25.2%, with the new prices planned to take effect on January 13, 2025. The notice was published on September 7, 2024, and people can comment within 30 days of that publication.

What it does#

• Changes three sets of regulations: the Letter Mail Regulations, the International Letter-post Items Regulations, and the Special Services and Fees Regulations.
• Raises common domestic rates (examples):
  • Single domestic stamp (up to 30 g): $1.15 → $1.44.
  • Booklet/coil/pane stamp (up to 30 g): $0.99 → $1.24.
  • Standard domestic over 30 g up to 50 g: $1.40 → $1.75.
• Raises international outbound letter rates (examples):
  • To the United States, up to 30 g: $1.40 → $1.75.
  • To other countries, up to 30 g: $2.92 → $3.65.
• Raises Registered Mail in Canada: $10.50 → $13.15.
• Overall the proposal results in a weighted average increase of 25.2% across regulated letter products.
• If implemented, the changes would come into force on January 13, 2025. Canada Post says current non‑Permanent stamps will be recalled and top‑up stamps will be available until supplies run out.

Who's affected#

• Canadians who buy postage for personal mail. Canada Post estimates an average household impact of about $2.26 per year.
• Small businesses that use stamps: estimated average impact about $42.17 per year; Canada Post estimates 1.2 million small businesses could be affected.
• People in rural and remote communities, Indigenous communities, and seniors — Canada Post’s analysis says these groups may use regulated postal products more and could see slightly bigger per‑household effects.
• Canada Post itself: the Corporation projects additional gross revenue of about $78.4 million in 2025 from these changes and a 10‑year present value benefit of $25.54 million (after accounting for higher prices paid by customers).

Why it matters#

• Postage will become noticeably more expensive for everyday letters and registered items if the rules are adopted. That matters to people who still rely on physical mail and to small businesses that send paper invoices, statements or marketing by post.
• Canada Post says the increases are aimed at reducing a growing gap between delivery costs and falling letter-mail revenue. The Corporation has reported losses in recent years and argues rate increases will help its financial sustainability.
• The impacts are small on average but unequally distributed: rural, Indigenous and older populations may feel the change more because they use mail services more often.
• This is a proposed regulatory change, not final. Comments were invited for 30 days after publication on September 7, 2024.