Microsoft 365 price increase 2026 – what applies since 1 July, and when it hits your contract
New Microsoft 365 prices have applied since 1 July 2026. Which plans are affected, what came with the increase – and why it reaches many SMBs only in 2027.
Microsoft raised prices for Microsoft 365 on 1 July 2026. For SMBs with many licences this adds up noticeably. Important for planning: the new prices do not apply immediately but at your first renewal after 1 July 2026 – many businesses will keep paying the old rates well into 2027.
As of 3 September 2026. The percentages and dollar figures below are the list prices published by Microsoft; your euro prices are in your Microsoft partner's quote or your CSP contract. All figures exclude VAT.
What changed
For the Business plans that dominate in smaller companies, the list prices published by Microsoft look like this (per user per month):
- Business Basic: +16.7% (from $6.00 to $7.00)
- Business Standard: +12% (from $12.50 to $14.00)
- Business Premium: unchanged at $22.00
- Microsoft 365 Apps for Business: +21% (from $8.25 to $10.00)
Across the whole portfolio the range runs from 0% (Business Premium, Office 365 E1) to 43% (Microsoft 365 F1 without Teams).
Microsoft justifies the adjustment with features that moved into the plans. For Business Basic and Business Standard those are 50 GB more mailbox storage, time-of-click URL protection and expanded Copilot Chat capabilities; Business Premium received the same additions without a price increase.
Source: Microsoft 365 Pricing and Packaging Updates (retrieved 3 September 2026)
The decisive point: your renewal date
According to Microsoft the new prices apply at your first renewal after 1 July 2026 – for annual and monthly billing alike. If you renewed for twelve months in spring 2026, you keep the old rates until your renewal date in 2027. With monthly billing the increase arrived long ago.
The practical step: find your renewal date – in the Microsoft 365 admin center under Billing > Your products, or from the partner you buy your licences through. That date is when the increase shows up on your invoice, and therefore the deadline for tidying up licences and reviewing plan sizes.
Source: Microsoft 365 Packaging and Pricing Updates FAQ (retrieved 3 September 2026)
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? Business Premium is the only Business plan without an increase – the gap to Standard has narrowed.
- Note your renewal date: set a reminder four weeks ahead and decide on the number and mix of licences then – not when the higher invoice arrives.
- 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.
What this means in practice
The increase is in force – but the point in time at which it hits you depends on your renewal date. Whoever tidies up licences and reviews plan sizes honestly before then cushions the effect noticeably.
Want your Microsoft 365 cost reviewed before your next renewal? In a free initial consultation we'll look at it together – soberly and without sales pressure.
Note: The articles on this blog are produced with the help of AI and are editorially reviewed before publication. Editorial responsibility lies with Emre Yurtbay (see the Impressum).