ISSAQUAH, Wash — The price of a Costco membership has officially increased, with the company's first price hike since 2017 now in effect.
On Sunday, Sept. 1, the cost for a Gold Star membership, the basic tier, increased from $60 to $65. Executive memberships, a higher-tier plan, increased from $120 to $130. Costco announced the change during its July earnings call.
While the fees went up, the maximum annual 2% cash back reward for Executive members has increased from $1,000 to $1,250.
Previously, the last membership price increase was in June 2017. Costco said the latest price hike will affect 52 million memberships, about half of which are the higher-tier Executive option.
"Our membership fees help to offset operational costs so we can keep our prices low. A modest increase in fees will allow us to bring our members even greater value," the company's website states.
On a call with investors last September, Costco's chief financial officer was clear that a membership price hike would come eventually and said it was "a question of when, not if."
Competitor Sam's Club also raised membership prices in 2022, but charges less than Costco at $50 for a base membership and $110 for its Plus membership.
RELATED: Sam's Club will change a key perk for Plus members next month. Here's what you need to know.
Costco, the third-largest retailer in the U.S. by sales volume, sells items in bulk and relies on a membership structure to keep costs down for shoppers. Last year, stores began to crack down on unauthorized card-sharing, getting stricter about asking to see shoppers' membership cards with their photo at self-checkout.
Costco currently operates more than 600 warehouses in the U.S.
TEGNA's Andrew Weil contributed to this report.