The Evolution of United States Postage Rates Over Time

The United States has a long history of postal rates that have evolved over time. The first postage rate in the US was 5 cents for a letter weighing up to 1/2 ounce in 1847.

As early as 1863, postage rates were increased to 3 cents for a letter weighing up to 1/2 ounce, due to the growing demand for mail services. This change was made to help the US Postal Service recover from the financial strain of the Civil War.

The 1870s saw the introduction of the postage stamp, which simplified the process of mailing letters. The first postage stamp, the 1-cent Benjamin Franklin stamp, was issued in 1847, but it wasn't until the 1870s that the use of postage stamps became widespread.

Over the years, postage rates have continued to change, with the most recent rate increase occurring in 2022.

The United States Postal Service has proposed a price increase for Forever stamps, raising the cost from 68 to 73 cents in July 2024.

This is the sixth increase since January 2021, and it's a result of a decline in mail volume, which has decreased by 68% since 2007 due to the rise of digital communication methods.

The USPS attempts to offset these financial losses through price adjustments to first-class mail, including Forever stamps. This strategy is necessary to maintain relatively inexpensive postage compared to other developed countries.

A 2024 study by the USPS Inspector General found that the U.S. had a lower stamp price than 26 out of 30 comparable countries.

Here's a summary of the domestic rates charged by the USPS:

The overall increase in stamp prices from June 2018 to June 2023 was 26%, which is significantly lower than the average increase of 55% experienced by comparable countries.

The price of a first-class stamp has closely followed the consumer price index since at least the early 1980s.

Despite the nominal rise in the cost of a first-class stamp, the adjusted cost of a stamp has stayed relatively stable. This is evident in the historical trend of the price of a stamp, which has shown a consistent relationship with the consumer price index.

A single penny change in the price of a stamp was significant in the early 1900s, especially when compared to the cost of the stamp. For example, the price increase from $0.02 to $0.03 on July 6, 1932, was a 50% increase in cost.

The adjusted price of a stamp in 2019 dollars was not fixed over time, which added to larger jumps in adjusted prices. This is in contrast to the fixed cost of the stamp itself, which remained relatively stable.

The large jumps in the early 1900s are a result of the significant percentage increase in price, rather than the actual dollar amount.

Mailing a postcard was a cost-effective way to send a message in the past. The first postcard rate was 1 cent in 1873, which was lower than the first-class letter rate.

The rate for postcards and postal cards was 2 cents from November 2, 1917, to June 30, 1919. This rate applied to both postcards and postal cards during this time period.

In 1925, there was a brief period where postcards were mailed at a rate of 2 cents, while postal cards were mailed at a rate of 1 cent. This change only lasted until about June 1928.

The 2-cent rate for postcards and postal cards continued until August 1, 1958, when the rate was raised to 3 cents.

Here's a list of the postcard rates from 1963 to 2023: