Microsoft raised list prices on most Microsoft 365 business suites on 1 July 2026, but you only see the new price on your own renewal date. Existing customers stay on their current price until renewal (Microsoft Licensing Resources). For a company on an annual term, renewals between now and mid-2027 are when the increase reaches the invoice.
New list prices (USD, per user per month, with Teams)
| Plan | Old | New | Change |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00 | $7.00 | +16% |
| Microsoft 365 Business Standard | $12.50 | $14.00 | +12% |
| Microsoft 365 Business Premium | $22.00 | $22.00 | no change |
| Microsoft 365 Apps for business | $8.25 | $10.00 | +21% |
| Office 365 E1 | $10.00 | $10.00 | no change |
| Office 365 E3 | $23.00 | $26.00 | +13% |
| Microsoft 365 E3 | $36.00 | $39.00 | +8% |
| Microsoft 365 E5 | $57.00 | $60.00 | +5% |
| Microsoft 365 F1 (frontline) | $2.25 | $3.00 | +33% |
| Microsoft 365 F3 (frontline) | $8.00 | $10.00 | +25% |
Source: Microsoft's pricing and packaging page, confirmed by Reuters and CNBC. The no-Teams versions rise by the same dollar amount (Business Basic $4.40 to $5.40, Business Standard $9.29 to $10.79). Microsoft says list prices "may vary by country and currency", and standalone Teams and Copilot SKUs are not part of this update.
What you get for the extra money
Packaging changes began rolling out in June 2026. Business Basic and Business Standard add 50 GB of email, URL time-of-click protection and Copilot Chat enhancements; Business Premium gets the extra mailbox space and Copilot Chat changes (the licensing page lists no time-of-click item for Premium). Customers get at least 30 days notice in the Message Center before packaging changes reach their tenant (Microsoft). Treat these as bundled features, not a reason the price moved: check whether you already pay for an email-security add-on that now overlaps.
What it costs a small firm per year
Our arithmetic from the table above (list price, annual, before any partner discount or local-currency adjustment):
| Plan | 10 users | 25 users |
|---|---|---|
| Business Basic | $720 to $840 (+$120) | $1,800 to $2,100 (+$300) |
| Business Standard | $1,500 to $1,680 (+$180) | $3,750 to $4,200 (+$450) |
| Business Premium | $2,640 (no change) | $6,600 (no change) |
A renewal checklist
- Find your renewal date in the Microsoft 365 admin center billing page or on your reseller's invoice. That is the day the new price starts.
- Remove unused seats first. A licence for someone who left now costs 12 to 16% more on Basic or Standard.
- Compare Standard with Premium if you need device management or Defender. Premium did not move, so the gap narrowed from $9.50 to $8.00 per user per month.
- Drop overlapping add-ons such as a separate link-protection or archive product, once you have confirmed the bundled feature covers the need.
- Price the alternatives on the same basis: see Google Workspace pricing, Zoho Mail pricing and Fastmail pricing, or run your own numbers in the email cost calculator.
If you run Exchange yourself instead, the cost question is different; see a self-hosted email cost case study. Microsoft 365 users should also check the EWS and SMTP basic-auth shutdown, which hits the same tenants.
FAQ
Did my price go up on 1 July 2026? Not if you were already subscribed. Existing customers stay on current pricing until renewal.
Which business plan did not change? Microsoft 365 Business Premium stays at $22.00, and Office 365 E1 stays at $10.00.
Does the increase apply outside the US? Microsoft says it applies globally with local market adjustments (Microsoft blog), so your currency price will differ from the USD list.
Who is hit hardest? Frontline plans (F1 +33%, F3 +25%) and Business Basic (+16%), by percentage.
