Microsoft 365 price increase July 2026 – what small businesses should do now
From 1 July 2026 Microsoft 365 gets more expensive. What changes, why – and one simple step that saves SMBs 12 months.
Microsoft is raising prices for Microsoft 365 on 1 July 2026. For SMBs with many licences this adds up noticeably. The good news: one simple step can push the increase back by twelve months.
As of May 2026. Microsoft typically publishes final euro prices about a month before they take effect – please verify the figures.
What changes
Depending on the plan, prices rise by roughly 5% to over 20%. The entry plan is hit hardest:
- Business Basic: +25% (from $6 to $7.50 per user/month)
- Business Standard: +12% (from $12.50 to $14)
- Business Premium: stays stable for now
Microsoft justifies the increase with new features, mainly in AI (Copilot Chat in Word, Excel, Outlook & co.) and security.
The decisive lever: renew the annual plan before 1 July
This is the practically most important point: annual subscriptions that renew before 1 July 2026 continue at the current terms. The higher prices only apply at the following renewal.
So whoever signs or renews an annual contract now – before July – locks in the old prices for another twelve months. With monthly billing, the increase applies immediately.
What you should do concretely
- Review licences: are you paying for mailboxes nobody uses? Every saved licence now counts double.
- Right-size: does everyone really need Premium, or is Standard enough for many? (Assess feature needs honestly.)
- Check the annual plan before July: if it's planned anyway, an early renewal is worth it – one billing year at the old prices.
- Weigh alternatives: with sharply rising cost it's worth a look at the options – see Microsoft 365 or Google Workspace and Self-hosted mail server vs. Microsoft 365.
Conclusion
The increase is decided – but the point in time at which it hits you can be influenced. Whoever tidies up licences and consciously steers the contract term cushions the effect noticeably.
Want your Microsoft 365 cost reviewed before July? In a free initial consultation we'll look at it together – soberly and without sales pressure.