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Microsoft to Raise Microsoft 365 Business and Government Prices in July 2026

Microsoft says recent investments justify higher list prices.

Overview

  • The increases take effect on July 1, 2026 for commercial and public‑sector customers worldwide, with government rollouts phased according to local regulations.
  • Small and medium‑business tiers move to $7 per user monthly for Business Basic and $14 for Business Standard, while Business Premium stays at $22 and Office 365 E1 remains $10.
  • Frontline plans climb to $3 for Microsoft 365 F1 and $10 for F3, and enterprise bundles rise to $39 for Microsoft 365 E3 and $60 for E5.
  • Copilot remains a separate add‑on priced at $30 per user per month and is not included in any of the suites.
  • Microsoft cites more than 1,100 new features across Microsoft 365, Security, Copilot and SharePoint for the change, noting that many customers use negotiated pricing and that this is the first commercial hike since 2022.