At a time when gas and grocery prices already have Americans stressed out, the United States Postal Service (USPS) has raised its delivery fees ahead of the holiday season.
The USPS filed a request with the Postal Regulatory Commission (PRC) in August for a temporary price increase on some package products during the 2026 peak holiday season.
“This temporary price adjustment is to help cover extra handling costs to ensure a successful peak season,” the federal agency shared in an August press release.
The USPS cannot make these price changes without approval from the Postal Regulatory Commission (PRC).
“The planned change for peak season, which was approved by the governors of the Postal Service, would affect prices on the following retail and commercial domestic competitive parcels: Priority Mail Express (PME), Priority Mail (PM), USPS Ground Advantage, and Parcel Select. No other products or services would be affected,” the USPS shared.
The temporary rates, which were approved by the PRC, went into effect at 12 a.m. CT on Oct. 4 and remain in place until 12 a.m. CT on Jan. 17, 2027.
The USPS is trying to make money
Postmaster General David Steiner addressed the USPS Board of Governors in August and discussed what he called “a continuing and urgent financial crisis.”
“On the financial front this quarter, we were $600 million better than in the same quarter last year. And the momentum has continued into the current quarter. On the operational side, we have reduced work hours and increased service performance, which shows that our employees are leveraging the network better than ever. And the operational momentum is continuing and will position us well as we move toward peak season,” he said, according to a transcript of his remarks.
He noted that the USPS needs higher prices.
“On the pricing front, the results this quarter show the strong leverage that pricing can have on results, and pricing is one lever that we have to use now to grow revenue,” he said.
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He noted that the USPS does have a monopoly in one area.
“In our market dominant products — which is essentially postage for mail delivery — we have been raising prices consistent with our regulatory authority,” he said. “And as a result, even though mail volumes have declined, largely due to secular trends, we have seen mail revenues rise — due to our pricing strategy.”
The USPS, he noted, cannot raise prices for most products without approval.
“Use of our pricing authority is absolutely necessary to improve our financial sustainability and we need to be given more flexibility if we are expected to cover our costs,” he added.
What the USPS price increases look like
The price changes include:
Retail:
Priority Mail and USPS Ground Advantage: Zones 1-4
- $0.50 increase for Zones 1-4, 0-3 lbs.
- $0.80 increase for Zones 1-4, 4-10 lbs.
- $1.25 increase for Zones 1-4, 11-25 lbs.
- $3.90 increase for Zones 1-4, 26-70 lbs. and Oversized.
Priority Mail: Zones 5-9
- $1.00 increase for Zones 5-9, 0-3 lbs.
- $2.10 increase for Zones 5-9, 4-10 lbs.
- $4.30 increase for Zones 5-9, 11-25 lbs.
- $9.10 increase for Zones 5-9, 26-70 lbs.
Priority Mail Flat Rate:
- $2.10 increase for Large Flat Rate Boxes.
- $1.00 increase for all other Flat Rate Products.
USPS Ground Advantage: Zones 5-9
- $0.75 increase for Zones 5-9, 0-3 lbs.
- $1.40 increase for Zones 5-9, 4-10 lbs.
- $2.75 increase for Zones 5-9, 11-25 lbs.
- $7.50 increase for Zones 5-9, 26-70 lbs. and Oversized.
Priority Mail Express: Zones 1-9
- $1.40 increase for Zones 1-4, 0-3 lbs.
- $2.35 increase for Zones 5-9, 0-3 lbs.
- $2.45 increase for Zones 1-4, 4-10 lbs.
- $6.30 increase for Zones 5-9, 4-10 lbs.
- $5.05 increase for Zones 1-4, 11-25 lbs.
- $11.70 increase for Zones 5-9, 11-25 lbs.
- $12.70 increase for Zones 1-4, 26-70 lbs.
- $20.80 increase for Zones 5-9, 26-70 lbs.
Priority Mail Express Flat Rate:
- $2.35 increase for Flat Rate Envelopes.
Commercial:
Priority Mail and USPS Ground Advantage: Zones 1-4
- $0.40 increase for Zones 1-4, 0-3 lbs. and Cubic Tiers 1-3.
- $0.65 increase for Zones 1-4, 4-10 lbs. and Cubic Tiers 4-5 (PM), 4-9 (GA).
- $1.05 increase for Zones 1-4, 11-25 lbs. and Cubic Tier 10 (GA).
- $3.15 increase for Zones 1-4, 26-70 lbs. and Oversized.
Priority Mail: Zones 5-9
- $0.85 increase for Zones 5-9, 0-3 lbs. and Cubic Tiers 1-3.
- $1.75 increase for Zones 5-9, 4-10 lbs. and Cubic Tiers 4-5.
- $3.85 increase for Zones 5-9, 11-25 lbs.
- $9.10 increase for Zones 5-9, 26-70 lbs.
Priority Mail Flat Rate:
- $1.75 increase for Large Flat Rate Boxes.
- $0.85 increase for all other Flat Rate Products.
USPS Ground Advantage: Zones 5-9
- $0.55 increase for Zones 5-9, 0-3 lbs. and Cubic Tiers 1-3.
- $1.05 increase for Zones 5-9, 4-10 lbs. and Cubic Tiers 4-9.
- $1.75 increase for Zones 5-9, 11-25 lbs. and Cubic Tier 10.
- $7.70 increase for Zones 5-9, 26-70 lbs. and Oversized.
Priority Mail Express: Zones 1-9
- $1.40 increase for Zones 1-4, 0-3 lbs.
- $2.35 increase for Zones 5-9, 0-3 lbs.
- $2.10 increase for Zones 1-4, 4-10 lbs.
- $5.55 increase for Zones 5-9, 4-10 lbs.
- $4.90 increase for Zones 1-4, 11-25 lbs.
- $10.50 increase for Zones 5-9, 11-25 lbs.
- $12.55 increase for Zones 1-4, 26-70 lbs.
- $18.20 increase for Zones 5-9, 26-70 lbs.
Priority Mail Express Flat Rate:
- $2.35 increase for Flat Rate Envelopes.
Parcel Select: (all entries)
- $0.40 increase for 0-3 lbs.
- $0.50 increase for 4-10 lbs.
- $0.80 increase for 11-25 lbs.
- $2.35 increase for 26-70 lbs. and Oversized
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USPS is still losing money
The U.S. Postal Service reported a $2.5 billion net loss for the fiscal third quarter, nearly $600 million less of a loss than the same quarter last year, and urged a series of actions from Congress to address its mounting financial crisis, according to Reuters.
“The Postal Service has reported net losses of more than $120 billion since 2007, as first-class mail, its most profitable product, has fallen sharply with the shift to digital communication even as the agency must maintain costly nationwide delivery operations,” the news agency shared.
In May, the USPS raised the price of first-class mail stamps to 82 cents from 78 cents, effective July 12.
Higher shipping costs could change how Americans send holiday gifts
Some Americans have cut back on gift buying for a very clear reason.
Nearly one in four U.S. consumers (23%) say they’ve reduced or stopped buying holiday gifts over the past 12 months to save money, according to a new survey from ecommerce marketing company Omnisend. Yet despite pulling back on gifting, many shoppers report spending more online overall – driven largely by inflation (39%) and higher shipping and delivery fees (23%).
“What’s changing isn’t the desire to celebrate – it’s how shoppers justify the purchase,” said Marty Bauer, ecommerce expert at Omnisend. “Consumers are still spending online, but higher delivery fees and everyday inflation are forcing trade-offs.”
The USPS is not alone in increasing prices. FedEx, UPS, and Amazon Shipping are all raising prices for the 2026 holiday season. Amazon offers Prime members free two-day shipping on tens of millions of items, but it is increasing prices for third-party items it ships.
“Over the past several weeks, all four major U.S. parcel carriers have revealed holiday surcharges or rate hikes that begin as early as this month and stretch into January. While similar in structure to last year’s installments, the 2026 peak season fees come at a higher cost, further pressuring shippers’ wallets in an already pricey year for last-mile delivery,” according to Supply Chain Dive.
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