Postage Rate Changes and Incentives: What You Need To Know

Significant changes are on the horizon for postal rates. Postage rates are projected to change July 13, 2025. Here is what you need to know to understand these adjustments and how to strategize effectively and minimize the impact of your budget. Here are the details:

July 2025 Postage Increase

The Postal Service has filed for Market Dominant Changes with the Postal Regulatory Commissions, slated to take effect on July 13, 2025. While final approval is pending, substantial pre-validation has been conducted. The USPS has filed two sets of rates, one with a Bound Printed Matter (BPM) category, and one without. If USPS gets approval to drop the BPM category, postal rates could increase further, with nonprofit Marketing Mail being affected the most.

Here are the key highlights:

• Single Piece Forever Stamps will go from $.73 to $.78 cents which is an increase of 6.8% or $0.05 cents per piece.
• First Class Presorted Automation Letter Rates will go up on average 8% or $0.049 cents per piece.
• First Class Presorted Automation Flat Rates will increase on average 8.2% or $0.113 cents per piece.
• Nonprofit Marketing Mail Auto Letters are going up on average 5.6% or $0.010 per piece; however, Destination SCF (DSCF) letters will see increases as high as 10.3% or 0.015 per piece.
• Nonprofit Marketing Mail Auto Flats (4 oz or less) per piece are going up on average 16.8% or $0.099 cents, however Destination SCF (DSCF) Flats 4 oz or less will see increases as high as 22%.

Of special note, this rate adjustment also eliminates the DNDC entry discount. As a result, Drop Ship mail overall could see higher increases. There are additional service standards changes, expanding on the ones from April 1, 2025, which now include banded sections around urban centers.

All of the new rates are preliminary until approved, which should occur in the next 30 days. Previous projected rate changes considered an increase of 8% for First Class and 11.6% for Marketing Mail.

USPS Postal Promotion and Incentives Changes

Preliminary details regarding the 2026 planned promotions have been received and should include a catalog promotion discount of up to 10%. The current catalog discount of $.001 per piece has been eliminated for the remainder of this year. Mail Growth Incentive will be offered again in 2026, but the baseline period will change to the entirety of calendar year 2025.

What’s Next?

Here are three steps you can take right now:

Be Informed: Download our postage rate chart and promos calendar from Production Solutions to support your budgeting process.

Stay Tuned: We’ll notify you once the rates are approved and provide additional insights into proposed promotional changes. We’re closely aligned with industry advocacy partners and will keep you updated.

Reach Out: Contact us with any questions or concerns. We’re here to help strategize through contingency plans and budget scenarios.