New Microsoft 365 commercial prices took effect on July 1, 2026. Microsoft announced the change in December 2025, and it covers most Business, Enterprise and Frontline plans, along with standalone products such as Enterprise Mobility and Security and Windows Enterprise. Existing customers move to the new prices at their first renewal after July 1, so many organizations will see the change on invoices over the coming months rather than all at once.
What changed
UC Today listed these U.S. list prices per user per month:
| Plan | Before July 1 | From July 1, 2026 |
|---|---|---|
| Microsoft 365 Business Basic | $6 | $7 |
| Microsoft 365 Business Standard | $12.50 | $14 |
| Microsoft 365 Business Premium | $22 | $22 (unchanged) |
| Office 365 E1 | $10 | $10 (unchanged) |
| Office 365 E3 | $23 | $26 |
| Microsoft 365 E3 | $36 | $39 |
| Microsoft 365 E5 | $57 | $60 |
UC Today also reported increases for frontline plans, including 33% for Microsoft 365 F1 with Teams and 43% without Teams, and 25% for F3 with Teams. It says Business Basic and Business Standard customers gain 50GB mailbox storage, phishing protection and Copilot Chat.
Microsoft's packaging and pricing FAQ says the update comes with added security and IT management features, including Microsoft Defender for Office 365 Plan 1, Intune Remote Help and Intune Advanced Analytics, and Security Copilot for E5. It states that customers on existing multi-year agreements keep their current pricing until renewal.
Why it matters for companies hiring IT firms
For a business with 50 users on Business Standard, the list price change adds $1.50 per user per month, or $900 a year. Larger organizations will see bigger totals: 200 users on Microsoft 365 E3 would pay $3 more per user per month, or $7,200 more a year at list price. Frontline-heavy businesses, such as retailers, manufacturers and healthcare providers that license many F1 or F3 users, may see the largest percentage increases. The added features may replace tools you currently pay for separately, but only if someone switches them on and configures them.
A managed IT services provider can review license assignments, remove unused seats, and work out whether moving some users to Business Premium, which kept its price, gives better value once its extra security features are counted. Ask for the review before your renewal date, since that is when the new price locks in for the next term.
Actual prices depend on your agreement, region, currency and reseller, so use your own quotes for budgeting. The list price examples above are useful mainly to estimate the scale of the change and to decide whether a license review is worth doing before renewal.
Why it matters for IT firms
Managed service providers and Microsoft partners will get questions from clients as renewals arrive. This is an opportunity to run license audits, configure the newly included security tools and plan Copilot rollouts with clear goals. Firms that build on SharePoint and other Microsoft platforms can also help clients use included capabilities instead of buying overlapping products. Explaining the change clearly and early tends to build more trust than waiting for a client to notice a higher invoice.
What to do next
- Check your renewal date to see when the new prices will apply to you.
- Audit active licenses and remove or downgrade unused seats before renewal.
- Compare Business Standard and Business Premium for users who need stronger security features.
- Ask your IT partner to configure newly included tools, such as Defender for Office 365 Plan 1, where your plan includes them.
Find Microsoft-focused IT partners among the companies listed on Trusted IT Firms.
Frequently asked questions
When did Microsoft 365 prices increase?
The new commercial prices took effect on July 1, 2026. Existing customers move to them at their first renewal after that date.
Which Microsoft 365 plans did not change price?
According to UC Today, Microsoft 365 Business Premium stayed at $22 and Office 365 E1 stayed at $10 per user per month.
How much did Business Standard go up?
Microsoft 365 Business Standard rose from $12.50 to $14 per user per month in U.S. list pricing.
Can I keep the old prices?
Microsoft says customers on existing multi-year agreements keep current pricing until renewal. After that the new prices apply, so license clean-up before renewal is the main way to limit the impact.
Sources
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