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USPS Shipping Rate Hike: What to Know [July 2025]

Written by Catherine O'Toole | Jul 10, 2025 11:56:47 PM

Are your shipping costs about to take a hit?
The short answer: Absolutely, and here's why …


The United States Postal Service (USPS) is
rolling out another price increase in 2025, and this one's a doozy – a 7.4 percent hike is set to take effect on Sunday, July 13. So, if you're someone who regularly ships packages or sends mail, this change will directly impact your wallet. 

Here's the breakdown: USPS, which serves nearly 169 million addresses across the country and delivers more mail and packages than any other postal service globally, has filed notice with the Postal Regulatory Commission about these upcoming changes. 

And friendsthe numbers are in.

The July postal rate increase will push the price of the First-Class Mail Forever stamp from 73 cents to 78 cents.

First-Class Postage Stamp prices will jump from 56 cents to 61 cents, while First-Class Flats will increase from $1.50 to $1.63. 

If you're feeling like we've just experienced a USPS price hike, you're not wrong. This price increase marks the sixth time since August 2021 that First-Class mail prices have increased. That's a lot of price bumps in a short time, and it highlights the serious challenges facing the postal service.

Why? The numbers speak for themselves. USPS reported a staggering $9.5 billion loss in the fiscal year that ended in September 2024 (up from a $6.5 billion net loss in 2023). So, if you are scratching your head and trying to understand the reason for the price hike, there are 9.5 billion reasons right there. 

So, what does all this mean for you? That's exactly what we'll be covering in this article.

Keep reading to learn about what these changes mean for your shipping costs, why they're happening, and most importantly, how you can prepare your shipping strategy to minimize the impact on your budget.



Breakdown of USPS July 2025 rate changes

The specific USPS price adjustments taking effect July 13, 2025 will impact virtually all mail classes. Let's take a look at the exact changes you'll see in your shipping costs.

So, gather around. It's time to spit some facts (as the kids say).

 

First-Class Mail gets hit hard

First-Class Mail rates are seeing substantial increases. We already mentioned the Forever stamp jump from 73 cents to 78 cents, representing a 5-cent increase. Also, similarly, metered letters (1 ounce) will rise from 69 cents to 74 cents. 

Domestic postcards will experience an even steeper increase, going from 56 cents to 62 cents. For international mailings, both postcards and letters (1 ounce) will increase from $1.65 to $1.70.  

Priority Mail services take a 6.3% hit (ouch)

Priority Mail services, which remain among USPS's most popular shipping options, will see an average increase of 6.3%

Here's what that looks like in real dollars:

  • Flat Rate Envelope prices will rise to $10.10 from $9.85
  • Small Flat Rate Boxes will increase to $10.65 from $10.40
  • Medium Flat Rate Boxes will jump to $19.15 from $18.40

 

USPS Ground Advantage rates climb 7.1% (oof)

USPS Ground Advantage rates are rising by approximately 7.1%. Under the new structure, packages weighing 1-4 oz (Zone 1) will cost $5.25, those weighing 5-8 oz will cost $6.00, and those 9-12 oz packages? Those will be priced at $6.75. 

But here's something interesting (or I think so)

Priority Mail Express prices are not changing (thankfully). 

 

New surcharges are coming 

Beyond these increases, USPS is introducing new surcharges that could catch you off guard

Packages with "nonstandard characteristics" like cylindrical tubes/rolls or containing more than 24 oz of liquid in glass containers (or 1 gallon or more of liquid in metal or plastic containers), will incur a $4.00 fee. 

Packages exceeding 22 inches but less than 30 inches in length will also face a $4.00 surcharge. Similarly, packages that are longer than 30 inches will see an $18.00 fee now. 

 

One bright spot

There is one positive change in all of this, though. In the July 2025 USPS list of changes, there is one bright spot:

Postal insurance costs will decrease by 12%. This will provide some modest relief for shipping needing this service. 

So, see? At least something is going in the right direction ... 

 

Why USPS is raising prices again

We briefly touched on this at the beginning, but let's take a more in-depth look at the reason behind the price increase. 

Here's the reality behind all these price hikes: mail volume has plummeted by 68% since 2007. That's a pretty significant drop, and it stems mostly from the shift toward digital communication. Email and social media have largely replaced traditional letter writing. 

Do you remember the last time you actually wrote and mailed a letter? Exactly

The postal service's financial position also keeps getting worse. As we mentioned before, USPS reported a staggering $9.5 billion net loss for the 2024 fiscal year. But you want to know what's even concerning? If the USPS does not make any major changes, the agency projects that its losses will total $160 billion over ten years

Postmaster General Louis DeJoy did address these challenges directly when he said, "Our pricing and product strategies are continuing to improve our revenue picture and fuel market share gains in our package business, demonstrating the increasing competitiveness of the Postal Service." 

Okay, but between us ... that's all good, but that's not necessarily the full picture. For example, roughly 80% of USPS losses come from fixed costs that are beyond immediate control. In particular, the pension contributions for retirees and workers' compensation claims. And, as someone with family who retired from USPS, I can say that their retirement benefits really are generous. Therefore, until the USPS addresses its fixed costs, these losses are not going anywhere. Which means, that the now-annual, twice-yearly rate increases that take place in January and July are unlikely to stop anytime soon. 

 

How to prepare for the new USPS rates

Wondering how to dodge the worst part of these price increases? Here's how to get ahead of the game. 

The July 2025 postage rate increase is coming whether we like it or not, but taking some smart steps now can help keep your shipping budget from feeling the heat of the price hike. The good news? There are several ways to save moneyyou just have to know where to look. 

Get your measurements right

Incorrect dimensions can lead to costly surcharges, and trust me on this, you don't want to deal with those surprises. Packages with a longest side exceeding 22 inches but less than 30 inches will incur a $4.00 fee. This jumps to $15.00 for packages longer than 30 inches, and packages exceeding 2 cubic feet in volume face a $30.00 surcharge. 

Master dimension weight

For packages larger than 1 cubic foot, here's what you need to know: 

  • Multiply Length x Width X Hight and divide by 166 (why 166? Here's why.)
  • If the dimensional weight exceeds the actual weight, you'll pay the higher price
  • Missing or incorrect dimensions will result in a $1.50 surcharge

Flat-rate boxes are your friend

When shipping heavier items, USPS flat rate packaging often provides better value. These come in standard sizes, available for free at Post Office locations, or can be ordered online. The real benefit of flat-rate is that you can stuff as much as you want in those boxes (of course, within reason) without worrying about weight charges.

Use a shipping software that works

Shipping systems like Zenventory can provide access to the lowest commercial USPS rates available. Many shipping solutions help you print labels and save significantly across multiple carriers. You want a system that makes your life easier, not harder.

Double-check everything

Avoid common mistakes by using a kitchen or postal scale (leave the bathroom scale where it belongsin the bathroom). The USPS Price Calculator tool can also verify your domestic postage costs before shipping. 

 

Final thoughts

Let's be honest, shipping costs are going to keep changing, and are expected to keep changing in 2025. But with these strategies in your back pocket, you can stay ahead of the curve and keep those price increases from derailing your budget. 

And remember: You got this.