The maximum price of items in its stores will increase to $7 this year.
The retailer's CEO, Rick Dreiling, announced the change during an earnings call earlier this month. He said the increase is due to a wealthier customer base.
Dreiling said the company's fastest-growing customer demographic is people who earn at least $125,000 a year.
Dollar Tree, Family Dollar to close nearly 1,000 stores
Three years ago, Dollar Tree raised the base price of its items to $1.25.
The company reported a net loss of more than $1.7 billion in the fiscal quarter ending Feb. 3. In response, it announced plans to close nearly 1,000 stores.