Microsoft 365 commercial price increases take effect July 1, 2026. Packaging updates with new features begin rolling out in June 2026 and complete by August 1, 2026. Existing customers keep current pricing until their next renewal date. Customers receive 30 days of notice in the Microsoft 365 admin Message Center before packaging changes appear in their tenant.

Increases range from 5% to 43% depending on the SKU. Microsoft 365 E5 goes up 5%, Microsoft 365 E3 and Office 365 E5 go up 8%, Office 365 E3 goes up 13%, Microsoft 365 Business Basic and Standard go up 12 to 16%, and Microsoft 365 Frontline F1 and F3 go up 25 to 43%. Windows Enterprise per device jumps 31%.

Microsoft 365 Frontline plans see the largest percentage increases. Microsoft 365 F1 without Teams jumps 43% (from $1.75 to $2.50 per user per month), F1 with Teams climbs 33%, F3 without Teams goes up 29%, and F3 with Teams goes up 25%. Windows Enterprise per device also jumps 31%, and Microsoft 365 Apps per device goes up 17%.

No. Standalone Microsoft Teams and standalone Microsoft 365 Copilot licenses are explicitly excluded from the July 2026 price update. Their prices remain unchanged. The change applies to commercial Microsoft 365 suites (Enterprise, Business, Frontline) and standalone components like Microsoft 365 Apps, Windows E3 and E5, Enterprise Mobility + Security E3 and E5, and Microsoft Entra Plan 1 and Plan 2.

No. Existing customers remain on their current pricing for the duration of their current term. The new prices apply at the next renewal on or after July 1, 2026. Mid-term seat additions and true-ups after July 1, 2026 will be priced at the new rates.

Microsoft is adding capabilities to most existing tiers at no extra cost between June and August 2026. Microsoft 365 E3 picks up Microsoft Defender for Office Plan 1, Intune Remote Help, Intune Advanced Analytics, and Intune Plan 2. Microsoft 365 E5 adds Microsoft Security Copilot, Intune Endpoint Privilege Management, Microsoft Cloud PKI, and Intune Enterprise Application Management. Almost every commercial tier receives Copilot Chat enhancements (inbox and calendar awareness plus access to Word, Excel, and PowerPoint agents) and Copilot Chat Analytics.

Yes. Nonprofit Microsoft 365 pricing follows the same percentage change as commercial pricing, though absolute prices remain lower at the standard 60 to 75% nonprofit discount. The packaging additions also apply to nonprofit subscriptions.

Yes, with phased implementation. Government customers facing total increases over 10% (such as Microsoft 365 F1 at 33%, F3 at 25%, and Office 365 E3 at 13%) will have those increases phased over multiple years per federal regulations. Government packaging updates may also lag the commercial rollout while features complete FedRAMP and data-residency validation.

It depends on your renewal date and term. If your renewal falls between now and June 30, 2026, renewing before that date can lock in current pricing for your new term. Customers on month-to-month commitments often save by switching to an annual term before July 1. The right choice depends on seat count trends, current SKU mix, and add-on licensing.

Office 365 E1 at $10.00, Office 365 E1 without Teams at $6.79, Microsoft 365 Business Premium at $22.00, Microsoft 365 Business Premium without Teams at $18.79, the Microsoft Defender Suite at $12.00, and the Microsoft Purview Suite at $12.00 all remain at current pricing. Standalone Microsoft Teams and standalone Microsoft 365 Copilot are also excluded from the update.

Per-device Microsoft 365 SKUs see meaningful increases. Microsoft 365 Apps per device goes from $36.00 to $42.00 per device per month (+17%). Windows Enterprise per device goes from $5.85 to $7.63 per device per month (+31%). Per-device licensing primarily applies to shared-use scenarios such as kiosks, manufacturing floors, and certain Frontline configurations.

On-Site Technology provides Microsoft 365 licensing, renewal planning, and migration services for businesses across the United States. Our team will review your current SKU mix, model the July 1, 2026 pricing against your renewal date, identify whether the bundled Microsoft 365 E3 or E5 now beats your add-on stack, and recommend a renewal path. Call (973) 777-7227 or use the contact form on this page.