USPS postage updates 2023

The United States Postal Service recently announced new prices for 2023 for market-dominant mail products. These USPS postage updates will be effective on January 23, 2023. The USPS Board of Governors has approved the changes.

Some of the highlights include raising First Class Mail prices. Let’s break down all the new rates and their impact on your print and mail operations.

First Class Mail Changes

New rates for first class mail include the following:

  • First Class Mail Forever stamps increase from 60 cents to 63 cents.
  • First Class Mail prices will go up by 4.2% to offset inflation.

In the 2022 rate update, the USPS did not increase First Class Mail letters. New changes are now in line with the USPS’s announcement that they would increase First Class Mail prices twice yearly, in January and July.

Mailing Services Price Updates

The USPS announcement also involves Mailing Services rate changes:

  • Letters (metered 1 oz.) will be 60 cents; the current price is 57 cents.
  • Domestic postcards will be 48 cents; the current rate is 44 cents.
  • International postcards will be $1.45, up from $1.40.
  • International letter (1 oz.) will be $1.45, up from $1.40.

Special Services Price Adjustments Proposed

In addition to the rate changes noted above, the USPS is also seeking price adjustments for special services, including certified mail, cost to purchase insurance with mail, money order fees, and post office box rentals.

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There are also temporary price increases that coincide with peak holiday season.

Temporary Rate Adjustments (October 2, 2022 – January 22, 2023)

The USPS issued temporary price changes for Priority Mail, packages, and other products and services in response to the high volume of mail during the last quarter of the year.

Priority Mail and Priority Mail Express
Product Commercial Increase Retail Increase
PM and PME Flat Rate Boxes and Envelopes $0.75 $0.95
Zones 1–4, 0–10 lbs. $0.25 $0.30
Zones 5–9, 0–10 lbs. $0.80 $1.00
Zones 1–4, 11–25 lbs. $0.75 $0.95
Zones 5–9, 11–25 lbs. $2.80 $3.20
Zones 1–4, 26–70 lbs. $3.00 $3.25
Zones 5–9, 26–70 lbs. $6.50 $6.45


First Class Package Services, Parcel Select Ground, and USPS Retail Ground
Products Commercial Increase Retail Increase
Zones 1–4, 0–10 lbs. $0.25 $0.30
Zones 5–9, 0–10 lbs. $0.40 $0.60
Zones 1–4, 11–25 lbs. $0.75 $0.95
Zones 5–9, 11–25 lbs. $1.60 $2.70
Zones 1–4, 26–70 lbs. $3.00 $3.25
Zones 5–9, 26–70 lbs. $5.50 $5.85


Additional Products and Services
Product Current (starts at) Planned Increase
Parcel Select Destination Delivery Unit (DDU) $3.50 $0.25
Parcel Select DSCF $3.77 $0.75
Parcel Select DNDC $4.84 $0.75
USPS Connect Local $3.95 No Change
Parcel Select Lightweight (DDU) $2.32 No Change
Parcel Select Lightweight (DSCF and DNDC) $2.72 No Change
Parcel Return Service $3.37 No Change

Why the Rate Increases?

postage rates increase

The USPS postage adjustments are increasing to provide revenue to achieve financial stability, as outlined in the Delivering for America 10-year plan. According to the agency, USPS remains one the most affordable in the world.

The rate adjustments are also connected to the new rate-setting system implemented in December 2020. It allows the USPS to set market-dominant mail prices above the rate of inflation but still have a price cap based on mail density and the agency’s contributions to employee retirement funds.

How Will USPS Postage Rate Hikes Impact Your Business?

The added costs to your postage budget depend on the volume of your mailings and the category to which they belong. There are many options to reduce postage costs that are considered best practices — address hygiene, usage of Intelligent Mail® barcode (IMb), and presorting discounts. Most companies that manage print and mail in-house don’t have the level of sophistication to take advantage of these.

However, transactional print and mail specialists like PCI Group do. When you outsource your letters, statements, and documents, you’ll benefit from the exceptional rates we enjoy due to our volume and processes.

If you’re concerned about the rising cost of postage, paper, equipment, and labor, you should consider the benefits of working with us. Check out our solutions today to get started.