Microsoft 365 price increase 2026: what to do next
Microsoft raised the price of most commercial Microsoft 365 suites on July 1, 2026. It announced the change on December 4, 2025. If your plan renews after July 1, the new price applies at renewal. Full tables for every suite are on our Microsoft 365 2026 price increase page.
What changed for small business plans
USD per user per month, annual commitment.
| Plan | Old price | New price | Extra per user per year |
|---|---|---|---|
| Business Basic | $6 | $7 | $12 |
| Business Standard | $12.50 | $14 | $18 |
| Business Premium | $22 | $22 | No change |
| Business Basic (no Teams) | $4.40 | $5.40 | $12 |
| Business Standard (no Teams) | $9.29 | $10.79 | $18 |
For a team of 10 on Business Standard, the monthly bill goes from $125 to $140. Over a year that is $1,500 before and $1,680 after, or $180 more.
Enterprise and frontline plans went up in price. Microsoft 365 E3 went from $36 to $39 and F3 from $8 to $10.
5 steps before your renewal
1. Find your renewal date. It is in the Microsoft 365 admin center under Billing. On an annual commitment, your current price holds until that date.
2. Count active seats. Remove licenses for people who left. Each unused Business Standard seat costs $168 a year at the new price.
3. Match each person to a plan. Staff who need email, Teams and the web apps and nothing more can sit on Business Basic at $7. Keep desktop apps (Business Standard) for people who use them.
4. Price Business Premium for anyone who needs security add-ons. Premium did not change and stays at $22. If you pay for separate device or security tools on top of Standard, compare the total.
5. Check the no-Teams versions. If your team uses another chat and meeting tool, the no-Teams suites cost less. Business Basic without Teams is $5.40.
Watch for the next change
Microsoft changes prices on its own schedule. SaaS Price Watch reads the Microsoft 365 business plans page each week and logs any change with the source.
The last increase before this one was on March 1, 2022, when Business Basic went from $5 to $6. See our Microsoft 365 price increase 2022 guide. If you add Copilot to a business plan, see the Microsoft 365 Copilot pricing guide.
Home plans have their own price list. Personal and Family went up $3 a month in the US on January 16, 2025. See our Microsoft 365 Personal and Family price increase 2025 guide. For other Microsoft business products, see the Teams Phone price increase 2025 and the Business Central price increase 2025.
FAQ
Did Microsoft 365 go up in 2026? Yes. Most commercial suites rose on July 1, 2026. Business Basic went from $6 to $7 and Business Standard from $12.50 to $14 per user per month.
Which Microsoft 365 plan did not go up? Business Premium stayed at $22 and Office 365 E1 stayed at $10, per user per month on annual commitment.
What is the cheapest Microsoft 365 business plan? Among the business suites in the table, Business Basic without Teams at $5.40 per user per month on annual commitment.
When does the new price hit my bill? At your next renewal on or after July 1, 2026, for plans on an annual commitment.
Get an alert next time
Set up a price alert for Microsoft 365. We email you the week a price changes, with the old price, the new price and the source.
Checked 2026-10-23. Prices and policies change. Confirm on the source before you buy.
Sources
- https://saaspricealerts.com/price-increases/microsoft-365-2026/
- https://saaspricealerts.com/vendors/microsoft-com-microsoft-365-business/
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