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Microsoft 365 price increase 2026: what changed on July 1
Yes. Microsoft raised the price of most commercial Microsoft 365 suites on July 1, 2026. It announced the change on December 4, 2025. The prices below come from Microsoft's own licensing table. Our read of the live business plans page on October 18, 2026 shows the new Business Basic price.
Effective July 1, 2026. Announced December 4, 2025. Verified 2026-10-18. Status: announced by vendor.
Suites with Teams
USD per user per month, annual commitment.
| Plan | Old price | New price | Extra per year |
|---|---|---|---|
| Microsoft 365 Business Basic | $6 | $7 | +$12 |
| Microsoft 365 Business Standard | $12.50 | $14 | +$18 |
| Office 365 E3 | $23 | $26 | +$36 |
| Office 365 E5 | $38 | $41 | +$36 |
| Microsoft 365 E3 | $36 | $39 | +$36 |
| Microsoft 365 E5 | $57 | $60 | +$36 |
| Microsoft 365 F1 | $2.25 | $3 | +$9 |
| Microsoft 365 F3 | $8 | $10 | +$24 |
| Microsoft 365 Business Premium | $22 | $22 | $0 |
| Office 365 E1 | $10 | $10 | $0 |
Suites without Teams
USD per user per month, annual commitment.
| Plan | Old price | New price | Extra per year |
|---|---|---|---|
| Microsoft 365 Business Basic (no Teams) | $4.40 | $5.40 | +$12 |
| Microsoft 365 Business Standard (no Teams) | $9.29 | $10.79 | +$18 |
| Office 365 E3 (no Teams) | $14.45 | $17.45 | +$36 |
| Office 365 E5 (no Teams) | $29.45 | $32.45 | +$36 |
| Microsoft 365 E3 (no Teams) | $27.45 | $30.45 | +$36 |
| Microsoft 365 E5 (no Teams) | $48.45 | $51.45 | +$36 |
| Microsoft 365 F1 (no Teams) | $1.75 | $2.50 | +$9 |
| Microsoft 365 F3 (no Teams) | $6.93 | $8.93 | +$24 |
| Microsoft 365 Business Premium (no Teams) | $18.79 | $18.79 | $0 |
| Office 365 E1 (no Teams) | $6.79 | $6.79 | $0 |
Per year is the monthly price times 12. Change is our math from the two prices. Microsoft's table rounds some of these down, for example 16% for Business Basic.
This page covers business, enterprise and frontline plans in USD, per user per month, with an annual commitment. The consumer Personal and Family plans are not on this page. Prices vary by country and currency.
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Watch Microsoft 365, $9 a month All price increasesWhat Microsoft 365 said
"Today we are announcing expanded availability of AI, security, and management capabilities coming to Microsoft 365 offerings in 2026. With these innovations, we will also update our commercial pricing for Microsoft 365 suite subscriptions effective July 1, 2026."
https://www.microsoft.com/en-us/copilot/blog/2025/12/04/advancing-microsoft-365-new-capabilities-and-pricing-update/"Standalone Microsoft Teams and Copilot SKUs are not included in this update. See timing details below. Pricing updates take effect July 1, 2026. Packaging updates begin rolling out in June 2026. Existing customers remain on current pricing until renewal."
https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates"Microsoft 365 Business Basic 16% $6.00 $7.00 Microsoft 365 Business Standard 12% $12.50 $14.00 Microsoft 365 Business Premium -- $22.00"
https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates"This pricelist pricing is subject to change and may vary by country and currency."
https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates"Nonprofit pricing will be adjusted in line with commercial pricing, as it is tied to commercial rates through a fixed percentage discount."
https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates
Who it hits and when
- Commercial customers on business, enterprise and frontline suites. New prices took effect July 1, 2026.
- Existing customers keep their current price until renewal.
- Standalone Teams and Copilot plans are not part of this change.
- Nonprofit prices follow commercial prices through a fixed discount. Government prices follow the same change, and Microsoft phases increases above 10% over more than one year.
- Prices vary by country and currency.
Our latest read
Read 2026-10-18 16:39 CT from https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-plans-and-pricing. Status: announced by vendor.
| Plan | Price read |
|---|---|
| Microsoft 365 Business Basic | $7 |
| Microsoft 365 Business Basic (no Teams) | $5.40 |
The page lists Business Standard and Business Premium bundled with Copilot at $23.50 and $32.00. Those are different products, so this read cannot show the $14.00 and $22.00 prices. The status stays at announced by vendor until it can.
Full Microsoft 365 pricing page
Other chat, meeting and file tools we track
We do not track Google Workspace or Zoho Workplace yet. These tools we track cover part of the same job. Open each one for the plans, prices and quotes we read from its pricing page.
| Tool | Prices quoted | Checked |
|---|---|---|
| Slack pricing | 4 | 2026-10-18, source |
| Dropbox pricing | 3 | 2026-10-18, source |
| Box pricing | 6 | 2026-10-18, source |
Questions
Did Microsoft 365 go up in 2026?
Yes, for most commercial suites. Business Basic went from $6.00 to $7.00 per user per month and Business Standard from $12.50 to $14.00. Office 365 E3 and E5, Microsoft 365 E3 and E5, and the frontline F1 and F3 plans went up.
Which Microsoft 365 plans did not change?
Business Premium stayed at $22.00 and Office 365 E1 at $10.00 per user per month. The no-Teams versions of those two stayed the same.
When does the Microsoft 365 increase hit my renewal?
The new prices took effect July 1, 2026. Microsoft says existing customers keep their current price until renewal.
Did Microsoft 365 Business Premium change?
No. It lists at $22.00 per user per month before and after July 1, 2026.
What does the Microsoft 365 increase cost per year for 10 users?
On Business Standard, $1.50 more per user per month, so $180 a year for 10 users. On Business Basic, $120 a year for 10 users.
How we check
This page starts from the vendor's own notice. We save a copy of every source page. Old prices come from the notice or from an archive copy of the pricing page from before the change. New prices come from the notice and from our own read of the live pricing page. The status reads "confirmed by our read" when our read shows every new price, and "announced by vendor" until then. Prices we detect ourselves are on the change log. See the methodology.
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