In 2027, the price of a Canadian stamp will increase from $1.44 to $2.00, and will then increase by approximately 7% per year subsequently. This increase was confirmed in the federal budget introduced on November 5, 2026. The rates for package, ...they, however, remain unchanged: Canada Post has clarified that the November 9, 2026 that the package remains a «market-oriented product.» If your small business ships packages, your shipping bill is therefore not directly affected. If it still sends mail, that’s a different story.

Here’s what’s actually changing, based on the numbers, and what that means for a Canadian company by January 2027.

What exactly will increase at Canada Post in 2027?

The announced increase affects the mail, not parcel services. Here are the details of what has been confirmed and what still needs to be finalized.

In other words: An SME that sends invoices, notices, checks, or catalogs by mail will see its unit cost rise by about 39 % all at once. A small or medium-sized business that ships products won't see any changes on Canada Post's end.

Why don't package rates change?

Because parcels and letters operate under different regulatory frameworks. Mail is the exclusive domain of Canada Post, and its rates are regulated; parcels, on the other hand, compete directly with Purolator, UPS, FedEx, Intelcom, Nationex, and about a dozen regional carriers. Canada Post says it itself: parcels are a market-driven product. Raising its shipping rates above market levels would simply cause it to lose volume.

The financial context explains the increase in the mail segment. Canada Post reported a a pre-tax loss of $1.57 billion in 2025, the highest in its history. In February, the federal government granted it a a repayable loan of $1.01 billion. The state-owned company is presenting the stamp price increase as a way to bring its prices in line with its operating costs and to repay this financial assistance.

How much will the rate increase cost an SME that still sends mail?

Let's do the math using realistic volumes. The difference per shipment is 0,56 $ ($2.00 minus $1.44).

And that's just the first step. With an annual increase of about 7%, the $2.00 stamp in 2027 will be close to $2.45 around 2030. For an SME that mails 500 letters per month, the cumulative difference from the $1.44 rate then exceeds $6,000 per year. At Shipping Store, this is exactly the kind of expense we see going unnoticed in SME budgets: it doesn’t show up on a shipping invoice, but rather as small purchases of stamps spread out over twelve months.

Does switching to community mailboxes make a difference?

Yes, but not on the price. The federal budget provides for $1.2 billion over seven years to support the transition to community mailboxes. Canada Post served approximately 18 million addresses in the country, of which approximately 4 million people were still receiving door-to-door deliveries; it is these that must be converted.

For a business, the issue is operational, not related to pricing: a package that is too large for a community locker will not be delivered to the customer’s door but will be left at the post office with a notice. This results in delays in pickup, unclaimed packages, and returns. If you’re shipping items that exceed the dimensions of a locker, the choice of carrier and delivery method matters more than the price of the postage stamp.

What should a Canadian small business do between now and January 2027?

• Calculate your actual mail volume. Count the number of pieces of mail you've sent over the past twelve months—not just the number of stamps you bought last time. Multiply that by $0.56, and you'll have your annual exposure.
• Go digital with whatever you can. Invoices, statements, renewal notices, and confirmations are the top candidates. Every piece of mail that is removed from the mail stream represents a permanent cost savings—not just a temporary delay.
• Be sure to check your shipping rates anyway. Canada Post is not raising its package rates, but UPS and FedEx are implementing an average rate increase of 5.9% effective December 21, 2026 (UPS) and the January 4, 2027 (FedEx). The risk to your shipping bill lies there, not in the postage stamp.
• Wait for the international rates before adjusting your prices. Rate increases for letters sent to the United States and internationally have been announced but not quantified. If you mail documents abroad, be sure to build in a buffer in your 2027 budgets.
• Review your bulk stamp purchases. Permanent stamps purchased before the rate increase remain valid for standard domestic mail, regardless of the rate in effect at the time of use.

To compare your shipping options in Canada, check out our guides on Choosing a Carrier, on The 2027 UPS Rate Increase and on The Impact of Community Mailboxes on Packages cover each of these topics in detail.

The postage cost goes up, but the package fits: Prioritize accordingly

The headline for 2027 is the $2 stamp, but for most small and medium-sized businesses that ship goods, that’s not the main issue this winter: it lies in the 5.9% increase by private carriers and in their surcharges, which are rising faster than base rates. Treat the stamp price increase as a digitization issue, and the carriers’ rate hike as a negotiation issue.

Shipping Store It compares rates from Canada Post, Purolator, UPS, FedEx, and regional carriers for each shipment and alerts you to any surcharges before the label is printed. Get a rate comparison for your shipments and see how much your packages actually cost you.

Sources: Federal budget of November 5, 2026 (postage increase to $2.00 and annual indexation of approximately 7%); Canada Post statements reported on November 9, 2026 (parcel rates unchanged, pre-tax loss of $1.57 billion in 2025, federal loan of $1.01 billion, $1.2 billion over seven years for community mailboxes, 18 million addresses served, including 4 million via door-to-door delivery); announcements of across-the-board rate increases in 2027 by UPS (December 21, 2026) and FedEx (January 4, 2027). All amounts are approximate and vary depending on the agreement, service, and province; check the rates applicable to your account before making any pricing decisions.