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13525 Wellington Center Circle, Suite 107 Gainesville, VA 20155

Will Postage Rates Increase in 2021? (Updated December 2020)

Going to the Post Office is never fun. It’s even less fun if your trip results in higher shipping rates. Last October, the US Post Office had announced its intention of a postage rate increase. The new rates were to go into effect on Sunday, January 24, 2021.

The Postal Regulatory Commission (PRC) has accepted the 2021 proposed postage rate increase (as of December 2020). The Postal Service Board of Governors believes that this price increase will keep the USPS competitive and provide much-needed revenue. The rate increases are mostly based on the consumer price index, however, the competitive International Shipping Services prices are increased according to market conditions. Because these rates haven’t been approved yet, this means that the US Post Office could still have their rates increase or decrease or not change at all pending review of the PRC.

In the meantime, however, FedEx and UPS have also announced a postage rate increase at the beginning of the year. FedEx will raise pricing by an average of 4.9% beginning January 4, 2021.

Not all postage will be affected, so read on for some good news.

The bad news is that almost all rate types will be impacted by the increase. Some rates will see a higher increase than others, with specific rates reaching hikes of 9.9%.

Before we look at the rate increase details for the US Post Office, let’s take a look at some good news:

Here is how the original price changes would have affected key rate classes:

Priority Mail – 2021 Rates (Commercial Base Pricing)

Increase per Package – 2021 Rates vs. 2020 Rates

Weight (lbs.) Zones 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9
1 $0.14 $0.11 $0.11 $0.08 $0.36 $0.37 $0.38 $2.85
2 $0.15 $0.12 $0.12 $0.09 $0.45 $0.47 $0.50 $4.36
3 $0.16 $0.13 $0.13 $0.10 $0.55 $0.61 $0.71 $5.92
4 $0.16 $0.14 $0.14 $0.10 $0.64 $0.72 $0.82 $7.13
5 $0.16 $0.14 $0.14 $1.06 $0.73 $0.83 $0.95 $8.29

An average of 3.6% increase in postage rates from 2020 to 2021 for this class.

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 Priority Mail Flat Rate – 2021 Rates (Commercial Base Pricing)

Increase per Package – 2021 Rates vs. 2020 Rates

Product 2020 2021 Change
Small Flat-Rate Box $7.65 $7.90 3.3%
Medium Flat-Rate Box $13.20 $13.75 4.2%
Large Flat-Rate Box $18.30 $19.30 5.5%
APO/FPO Large Flat-Rate Box $16.80 $17.80 6.0%
Regular Flat-Rate Envelope $7.15 $7.40 3.5%
Legal Flat-Rate Envelope $7.45 $7.70 3.4%
Padded Flat-Rate Envelope $7.75 $8.00 3.2%

First Class Package Service – 2021 Rates (Commercial Base Pricing)

Increase per Package – 2021 Rates vs. 2020 Rates

Weight Zones 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9
1 ounce $0.27 $0.27 $0.28 $0.28 $0.29 $0.30 $0.31 $0.31
2 ounces $0.27 $0.27 $0.28 $0.28 $0.29 $0.30 $0.31 $0.31
3 ounces $0.27 $0.27 $0.28 $0.28 $0.29 $0.30 $0.31 $0.31
4 ounces $0.27 $0.27 $0.28 $0.28 $0.29 $0.30 $0.31 $0.31
5 ounces $0.25 $0.26 $0.26 $0.26 $0.19 $0.17 $0.18 $0.18
6 ounces $0.25 $0.26 $0.26 $0.26 $0.19 $0.17 $0.18 $0.18
7 ounces $0.25 $0.26 $0.26 $0.26 $0.19 $0.17 $0.18 $0.18
8 ounces $0.25 $0.26 $0.26 $0.26 $0.19 $0.17 $0.18 $0.18
9 ounces $0.11 $0.12 $0.12 $0.12 $0.20 $0.21 $0.22 $0.22
10 ounces $0.11 $0.12 $0.12 $0.12 $0.20 $0.21 $0.22 $0.22
11 ounces $0.11 $0.12 $0.12 $0.12 $0.20 $0.21 $0.22 $0.22
12 ounces $0.11 $0.12 $0.12 $0.12 $0.20 $0.21 $0.22 $0.22
13 ounces $0.15 $0.15 $0.15 $0.15 $0.26 $0.27 $0.28 $0.28
14 ounces $0.15 $0.15 $0.15 $0.15 $0.26 $0.27 $0.28 $0.28
15 ounces $0.15 $0.15 $0.15 $0.15 $0.26 $0.27 $0.28 $0.28
15.999 ounces $0.15 $0.15 $0.15 $0.15 $0.26 $0.27 $0.28 $0.28

Overall rates for First-Class Package Service will increase by 6.50% from 2020 to 2021.

Media Mail – 2020 Rates

Increase per Package – 2021 Rates vs. 2020 Rates

Weight
(lbs.)
2020 2021 Increase
1 $2.80 $2.89 $0.09
2 $3.33 $3.45 $0.12
3 $3.86 $4.01 $0.15
4 $4.39 $4.57 $0.18
5 $4.92 $5.13 $0.21
6 $5.45 $5.69 $0.24
7 $5.98 $6.25 $0.27
8 $6.52 $6.81 $0.29
9 $7.06 $7.37 $0.31
10 $7.60 $7.93 $0.33

Media mail rates will increase by an average of 3.6% from 2020 to 2021.

Priority Mail Express – 2021 Rates (Commercial Base Pricing)

Increase per Package – 2021 Rates vs. 2020 Rates

Weight (lbs.) Zones 1/2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9
0.5 $0.00 $0.00 $0.95 $1.10 $1.15 $1.35 $1.55 $2.20
1 $0.00 $0.00 $1.10 $1.25 $1.35 $1.60 $1.80 $2.55
2 $0.00 $0.00 $1.20 $1.50 $1.55 $1.85 $2.10 $2.95
3 $0.00 $0.00 $1.35 $1.65 $1.85 $2.10 $2.35 $3.35
4 $0.00 $0.00 $1.45 $1.90 $2.05 $2.35 $2.65 $3.75
5 $0.00 $0.00 $1.60 $2.05 $2.25 $2.60 $2.90 $4.10

An average of 2.5% increase in postage rates from 2019 to 2020 for this class. Packages weighing up to 20 lbs. traveling to Zones 1 through 3 will not see an increase.

Priority Mail Express Flat Rate – 2020 Rates (Commercial Base Pricing)

Increase per Package – 2021 Rates vs. 2020 Rates

Product 2020 2021 Increase
Flat Rate Envelope $22.75 $26.35 $0.00
Legal Flat Rate Envelope $22.95 $26.50 $0.00
Padded Flat Rate Envelope $23.25 $26.95 $0.00