Sending a Christmas card to family and friends will cost you more next holiday season. The federal budget proposes increasing the cost of a stamp from $1.44 to $2 in 2027, with a seven per cent a year increase in the years ahead. Budget 2026 says the price hike will “help bring Canada Post’s stamp pricing more closely in line” with other countries in the 38-member OECD (Organization for Economic Co-operation and Development).” “This measure will have a relatively limited impact on consumers and small businesses, with an estimate of only approximately $6 per year for consumers and $9 per year for small businesses,” the budget said. “This increase will further offset costs while ensuring continuous affordability.” The last time the cost of a stamp increased was in 2025, when Canada Post implemented a 25 per cent increase to $1.44 for a single stamp. A book of stamps costs $1.24 per stamp. The federal budget did not say when the cost of a stamp would increase, just saying it will be in 2027. A domestic stamp costs $1.95AUD in Australia and a first-class stamp costs £1.80 in England. The cost of a stamp in Canada was $1 in 2017, before increasing to $1.05 in 2018. Existing model ‘no longer works’ The federal government is also providing $1.4 billion over two years to support Canada Post’s operations, and $1.2 billion over seven years to support the Crown corporation as it converts urban door-to-door mail delivery to community mailboxes. “The Canada Post Corporation is a longstanding national institution that provides postal services to all Canadians,” the budget said. “Yet, the use of traditional letter mail for communication and commerce continues to decline, and Canada Post’s existing model no longer works for 21st-century Canada’s needs. This is why we are taking steps to improve the corporation’s efficiency, accountability, and long-term financial sustainability, ensuring it continues to provide its critical services and keep our postal service delivering for Canadians.” The hike in stamps comes as Canada Post sees declining mail volume. The 2025 annual report showed Canada Post delivered about two billion domestic letters last year, compared to 5.5 billion letters in 2006.
