Canada Post stamp prices set to rise nearly 40 per cent under federal budget

OTTAWA — Canadians will face a substantial increase in postage costs beginning in 2027 under a federal budget proposal that would raise the price of a single domestic stamp from $1.44 to $2.

The nearly 40-per-cent increase, outlined in Budget 2026 on November 5, forms part of the federal government’s efforts to address Canada Post’s persistent financial challenges and declining letter-mail volumes.

The government is also proposing annual postage rate increases of seven per cent in subsequent years, bringing Canadian stamp prices closer to those charged in several other industrialized countries.

Ottawa argues that the increase will have a relatively limited financial impact on most households and small businesses, estimating additional annual costs of approximately $6 for individual consumers and $9 for small businesses.

However, the changes could place additional pressure on organizations that continue to depend on traditional mail delivery, including community publications, charitable organizations and small businesses.

Canada Post has faced mounting financial difficulties as Canadians increasingly rely on digital communication, reducing demand for traditional letter delivery while parcel services face growing competition from private carriers.

The proposed increase follows an earlier adjustment in 2025, when the cost of a single stamp rose to $1.44.

The federal government maintains that higher postage revenues will help offset operating costs while supporting the continued availability of postal services throughout the country.

Budget 2026 also provides additional funding for certain specialized postal services, including library-material delivery and expanded postal inspections in Indigenous, northern and remote communities.

The exact implementation date of the new stamp rates in 2027 has not yet been announced.