How to Navigate the USPS Price Hike [January 2026]

It's that time of year. New year. New shipping rates.  

The United States Postal Service (USPS) will adjust its pricing structure for multiple shipping services on January 18, 2026. 

If you are wondering what this price structure adjustment means and how shipping options will be affected, you're in the right place. Read on for a detailed analysis of the planned pricing adjustments and how they might impact businesses this year. 

2026 USPS price adjustment

The USPS plans to implement a price increase across several shipping services, including USPS Ground Advantage, Priority Mail, Priority Mail Express, and Parcel Select.​

Here’s a breakdown of the expected increases for 2026 ...

USPS Ground Advantage rate increase

The USPS Ground Advantage service, which has become increasingly popular among small businesses, will experience a 7.8% average rate increase. This adjustment positions the service strategically between economy and premium shipping options.

The 2026 USPS Ground Advantage pricing update also includes:

• New published base rates across weight breaks.
  
  
• Continued zone‑based pricing, with updated rate tables that vary by destination zone rather than a single nationwide price.
  
  
• A Live Animal and Perishable Handling Fee of $7.50 per package, applied in addition to the regular postage when mailing live animals or perishable contents.

About Ground Advantage

The USPS launched Ground Advantage in July 2023 as their flagship ground package service. It replaced shipping services like First-Class Package Service, Retail Ground, and Parcel Select Ground. 

Priority Mail and Express changes

Priority Mail and Priority Mail Express services will see larger increases in 2026 than in the prior year, with Priority Mail's average price rate increasing to 6.6%, and Priority Mail Express rising an average of 5.1%. These adjustments reflect USPS’s strategy to maintain competitive pricing while addressing operational costs. The changes still affect commercial shipping rates in particular.​

A notable detail from the previous structure remains relevant: a $15.00 fee for shipping live animals and perishable goods through Priority Mail (while Priority Mail Express charges $7.50 for the same special handling).​

Parcel Select rate adjustments

Parcel Select services will also see meaningful changes, with an average 6.0% increase that reflects USPS’s continued overhaul of its shipping network. This follows the controversial changes implemented in 2024, which included a 25% average price increase for certain Parcel Select categories. The higher increase for USPS Parcel Select services over the past few years represents a continued push toward encouraging shipping partners to inject volume further upstream in their network.​

How the USPS price hike compares to other shipping service providers

The USPS’s planned 2026 rate increase strategically positions the agency against its primary competitors. With increases averaging 6.6% for Priority Mail and 5.1% for Priority Mail Express, USPS still tracks below the headline 5.9% general rate increases announced by both UPS and FedEx when the additional surcharges and fee changes are considered. 

The reason for the 2026 USPS price hike

The USPS has been grappling with financial issues for some time now and this year will be no different.

The USPS has reported a loss of $9.0 billion in the fiscal year 2025, down slightly from a $9.5 billion loss the prior year. Therefore, USPS leaders believe the new rates will continue to keep the service competitive while providing the agency with needed revenue.​

The long-term strategy

USPS’s financial challenges and the decrease in traditional mail demand aren’t stopping it from seeing its package business as a crucial part of its long-term strategy. Quite the contrary: It aims to increase USPS’s share in the parcel delivery market through network optimization, transportation cost reductions, and strategic price increases tied to products like Ground Advantage.​

“We aim to reduce costs by improving our operational precision and deploying modern-day logistics strategies. Our goal is to compete for a growing share of the package market,” stated Postmaster General and CEO Louis DeJoy in earlier explanations of the Delivering for America plan, which still shapes USPS’s approach to competitive products today.​

USPS is still one of the most affordable shipping options

Despite the price hikes, the USPS remains among the most affordable postal services globally, especially for lightweight parcels and residential deliveries. It is also worth noting that even with the new rate increases, USPS prices will still be one of the most affordable shipping options out there for many small businesses.​

Save money & eliminate price hike headaches - with a shipping software

In 2024 and 2025, the USPS implemented multiple shipping price increases, often pairing a January adjustment with additional mid-year changes or seasonal surcharges. Given this pattern and the 2026 adjustments, shippers should expect USPS pricing to continue evolving at least once a year, even when letter mail rates remain flat.​

If you want to keep USPS prices from taking more from your profits, it is worth exploring shipping software. Shipping software can help lower your USPS shipping rates by ensuring you get discounted shipping tiers, smarter service selection, and better cartonization. It can also streamline your operations and help optimize your fulfillment processes.​

Shipping software like Zenventory can also save you money by giving you access to the lowest commercial rates with USPS out there.

Final thoughts

The USPS’s decision to raise prices in January 2026 is a strategic response to financial challenges and evolving market conditions. While the increase may seem significant, the USPS continues to offer value for money with its relatively affordable and upfront pricing compared to other major carriers. As consumers and businesses adapt to these changes, the USPS remains committed to delivering reliable and cost-effective postal services, especially for package delivery.​

However, if you are tired of continuous price adjustments, shipping software like Zenventory can help you save money by getting you access to the cheapest USPS rates out there. Book a demo with one of our product experts to learn more about how shipping software can help you and your business.