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Microsoft to Raise Microsoft 365 Prices for Businesses and Governments Starting July 2026

Microsoft cites more than 1,100 new features and AI investments as the reason for the adjustment.

Overview

  • Small and midsize business plans will rise to $7 for Business Basic and $14 for Business Standard, with Business Premium unchanged at $22.
  • Frontline tiers will increase to $3 for F1 and $10 for F3, representing increases of up to about one-third.
  • Enterprise suites will see smaller jumps, with Microsoft 365 E3 moving to $39 and E5 to $60, and Office 365 E3 rising to $26.
  • Copilot remains a separate $30-per-user-per-month add-on and is not included in these subscriptions.
  • Government customers face similar percentage changes beginning July 1, 2026, with rollouts phased to comply with local rules, and many organizations pay negotiated rather than list prices after a prior commercial increase in 2022.