Microsoft 365 Price Changes from 1 July 2026
Microsoft 365 Pricing Changes from 1 July 2026
Microsoft has announced changes to the pricing and packaging of a number of Microsoft 365 commercial subscriptions, with the new prices taking effect from 1 July 2026.
These changes are being introduced by Microsoft globally and will affect a range of Microsoft 365 Business, Enterprise and standalone products. Existing customers will generally see the revised pricing apply at their next renewal after 1 July 2026, depending on their current subscription term and agreement.
Which Microsoft 365 packages are changing?
The main Microsoft 365 Business products affected include:
| Product | Microsoft list price change |
|---|---|
| Microsoft 365 Business Basic | from $6.00 to $7.00 per user/month |
| Microsoft 365 Business Standard | from $12.50 to $14.00 per user/month |
| Microsoft 365 Business Basic — no Teams | from $4.40 to $5.40 per user/month |
| Microsoft 365 Business Standard — no Teams | from $9.29 to $10.79 per user/month |
Microsoft 365 Business Premium is currently shown by Microsoft as having no listed price increase in this specific update. Microsoft 365 Apps for Business is increasing from $8.25 to $10.00 per user/month.
Microsoft has also announced changes to a number of Enterprise, Frontline, security, identity and Windows subscriptions, including Microsoft 365 F1/F3, Office/Microsoft 365 E plans, EMS, Entra, Windows Enterprise and Microsoft 365 Apps.
Why is Microsoft increasing prices?
Microsoft says the price changes reflect the additional value being added to Microsoft 365, including new AI, security, management and productivity capabilities. Microsoft has highlighted improvements across areas such as Copilot Chat, Defender, Intune, endpoint management and wider Microsoft 365 security functionality.
Microsoft is also adding +50GB of email storage to Microsoft 365 Business Basic, Business Standard and Business Premium as part of the summer 2026 packaging update. For many users, this should increase mailbox capacity from 50GB to 100GB, alongside the wider pricing and feature changes.
What does this mean for Weald IT clients?
For clients whose Microsoft 365 licensing is managed by Weald IT, we will review affected subscriptions and apply Microsoft’s revised pricing when applicable.
The exact impact will depend on:
- which Microsoft 365 products you use;
- whether your licences are monthly or annual;
- your renewal date;
- whether you use versions with or without Microsoft Teams;
- any existing contract or promotional pricing.
Where a client is materially affected, we will contact them ahead of the relevant renewal or billing change.
Can anything be done before 1 July?
In some cases, clients may be able to reduce the impact by reviewing licence usage, removing unused subscriptions, or moving suitable licences onto an annual commitment before the increase applies.
We recommend reviewing Microsoft 365 licensing before July, particularly if your organisation has grown, reduced headcount, changed working practices, or still has licences assigned to former users.
Need help reviewing your Microsoft 365 licences?
Weald IT can help review your current Microsoft 365 licensing, identify unused or unsuitable licences, and advise whether any changes should be made before the new Microsoft pricing takes effect.
Please contact us if you would like us to review your Microsoft 365 subscriptions before 1 July 2026.