Microsoft 365 Price Increase: What You Need to Know Before July 1, 2026
April 22, 2026
Microsoft is raising prices across most commercial Microsoft 365, Office 365, and Windows licenses — the largest update since 2022. Here’s a full breakdown of what’s changing, who’s affected, and what to do next.
Action Required: Microsoft’s new pricing takes effect July 1, 2026. Existing customers will see new rates at their next renewal after this date.
What’s Changing
Microsoft has announced a global price increase across most commercial Microsoft 365, Office 365, and Windows license tiers. Increases range from 5% to 33% per user per month depending on the plan — representing the company’s largest pricing update since 2022.
According to Microsoft, the changes reflect ongoing investment in AI, security, and management capabilities built into their platform.
Full Pricing Breakdown
| License / Plan | Current Price | New Price (July 1) | Change |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00/user/mo | $7.00/user/mo | +16% |
| Microsoft 365 Business Standard | $12.50/user/mo | $14.00/user/mo | +12% |
| Microsoft 365 Business Premium | $22.00/user/mo | $22.00/user/mo | No change |
| Office 365 E3 | $23.00/user/mo | $26.00/user/mo | +13% |
| Windows Enterprise / E3 / E5 | Varies | Varies | +9–31% |
| EMS E3/E5, Entra & M365 Apps | Varies | Varies | Increasing |
Nonprofit and government organizations will also see proportional price adjustments in line with the commercial changes above.
💡 The Business Premium opportunity
With Business Standard rising to $14.00 and Business Premium holding at $22.00, the gap between the two tiers has narrowed significantly. Organizations currently on Standard may find the upgrade to Premium — which includes advanced security, compliance, and device management — more cost-effective than ever before.
Who Is Affected
The increases apply to all commercial customers globally, including small businesses, enterprise organizations, nonprofits, and government entities. Existing customers on annual or monthly plans will see the new pricing reflected at their next renewal date after July 1, 2026.
Customers on legacy or promotional pricing agreements should check their contract terms directly with their licensing partner.
What You Should Do Now
- Review your current Microsoft 365 license types and user counts
- Check your renewal date — if it falls after July 1, you’ll be subject to new pricing
- Audit your active licenses to ensure you’re not paying for unused seats
- Consider whether a plan upgrade (e.g., Standard → Premium) makes sense given the narrowed price gap
- Speak to your IT partner about complementary security and management services that extend your Microsoft investment
How We Can Help
Navigating licensing changes doesn’t have to be complicated. Our team works with organizations of all sizes to review their Microsoft environments, identify cost savings, and ensure they’re getting maximum value from their investment.
Beyond licensing, we offer a full range of services that complement your Microsoft 365 environment — from security and compliance to identity management, endpoint protection, and backup and recovery.
Reach out to us before July 1st for a licensing review. We’ll help you understand exactly what the increase means for your organization and what options are available to you.