The season is supposed to be festive, but for the million-plus American households sending gifts, cards, and online parcels via the United States Postal Service (USPS), there’s a small bit of bad news this holiday season. USPS has announced it officially: its proposal to temporarily increase shipping prices during the busiest months of the year may make holiday shopping and shipping a tad more expensive.
The proposed increase will affect packages sent between October 5, 2025, and January 18, 2026. That means if you’re planning to send Christmas gifts, New Year packages, or deal with the inevitable wave of returns in early January, you’ll likely be paying more than usual.
Why USPS is raising prices again
This is not the first time USPS has raised rates during the middle of the holiday season. The agency has been hiking rates over a few years. The reason provided by USPS is simple: the holidays bring with them an influx of mail and package volumes that put huge pressure on the postal infrastructure.
There have to be more planes and trucks to transport packages more efficiently. More postal workers are brought in to sift through the deluge. The sorting facilities are open longer. It all costs USPS more money that has to be paid one way or another.
By increasing shipping prices for that temporary period of time, USPS says it can meet the increased cost of transportation, seasonal staff, and facility upgrades. If not for the rate increase, the agency says it would be unable to meet demand while still delivering on time.
How long will the higher rates last
The holiday price surge will run for slightly over three months — mid-October to mid-January. This time frame covers the busiest holiday shopping season, the Christmas rush, and the busy returns period of the first few weeks in the new year.
It’s worth noting that the Postal Regulatory Commission (PRC) will still have to approve these new rates can be implemented. The PRC process ensures the price hikes are reasonable and well-supported. That being said, since similar increases have been approved in prior years, there’s a good bet that these new rates will be approved.
What this means for everyday Americans
For individuals, it will have a couple of implications. If you send a lot of packages — be it Christmas presents to relatives or cakes to friends — you will need to budget a little bit more this year.
For online sellers and small companies, the hike can be more drastic. Small stores rely heavily on USPS to send merchandise at a reasonable cost. A higher shipping rate during peak months can mean higher prices for customers or lower margins for retailers.
Even larger e-commerce retailers with “free shipping” offers usually factor the shipping cost into their product pricing. When USPS rates go up, those retailers can raise product prices or just pass the extra amounts on to customers.
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Looking back at 2024’s holiday rate hike
In 2024, USPS also implemented a temporary holiday price increase. While the exact percentages for 2025 haven’t been released yet, last year’s increases give us a good idea of what to expect.
For example, in 2024, packages in Priority Mail and Priority Mail Express saw price hikes of 25 cents to over $1 per package, varying by size and distance. Ground Advantage and other package services also saw moderate price hikes.
If the 2025 adjustments follow a similar pattern, the difference might not seem huge per package — but it can add up quickly if you’re sending multiple shipments. For businesses processing hundreds or thousands of orders, even a small per-package increase could have a big financial impact.
Why USPS faces unique holiday challenges
Holiday shipping is not merely delivering boxes from point A to point B. USPS has to deal with relentless weather, aggressive delivery routes, and an unforeseen volume of packages — all in competition with private enterprises UPS and FedEx.
As opposed to private carriers, USPS has a duty by law to deliver to any location in the United States, no matter how remote. That is to say that while a private carrier can bypass some rural roads at high demand, USPS has to still make the delivery — irrespective of the cost.
These problems need the agency to be well equipped ahead of the holiday rush. The temporary price hikes are one of the ways in which the money necessary for handling the demand is made available.
The bigger picture: USPS’s financial troubles
The holiday rates hikes also come in the midst of USPS’s long-term financial struggles. The postal service has been going through years of declining first-class mail volume as people shift to online communications. While package delivery is up, it is a competitive market where profit margins can be razor-thin.
By raising rates during the holiday season, USPS gets a quick infusion of income when demand is greatest. It’s a policy that they’ve depended on since 2020 — and it will likely remain so for years to come unless radical reforms occur in postal operations and funding.
How to save on holiday shipping despite the hike
Even when prices do go up this year, try these tips for keeping your shipping costs under control:
- Ship in advance – Avoid the last-minute surcharges by sending packages out early before the holiday rush.
- Use flat-rate boxes – They can be less expensive, especially on heavy items.
- Shop around – USPS First-Class Package Service or Ground Advantage may be less than Priority Mail in some cases.
- Seek out discounts – Several online shipping sites provide USPS discounts for printing at home.
- Planning in advance can make a big difference — and may keep you from having to pay additional fees for December expedited shipping.
