Home › Blog › Microsoft 365 Price Increase July 2026: What Changes
Microsoft raised the list prices of several Microsoft 365 business plans on 1 July 2026. Business Basic and Business Standard cost more per user. Business Premium stayed at the same price. If you already pay for a subscription, you keep your current price until it renews. Microsoft says prices may vary by country and currency, so UK customers should check their own invoice or reseller quote.
What changed
The table below shows Microsoft’s US dollar list prices per user per month. The first column includes Teams. The second column is for plans without Teams.
| Plan | Before 1 July 2026 | From 1 July 2026 | Change |
|---|---|---|---|
| Business Basic (with Teams) | $6.00 | $7.00 | +16% |
| Business Basic (without Teams) | $4.40 | $5.40 | +23% |
| Business Standard (with Teams) | $12.50 | $14.00 | +12% |
| Business Standard (without Teams) | $9.29 | $10.79 | +16% |
| Business Premium (with Teams) | $22.00 | $22.00 | No change |
| Business Premium (without Teams) | $18.79 | $18.79 | No change |
Microsoft’s own table is the source for these figures. Trade publications repeat the same dollar amounts, so the figures are consistent across sources.
Who is affected, and when
The price change does not hit everyone on 1 July. Microsoft says existing customers stay on their current pricing until renewal. In practice that means:
- Monthly subscribers move to the new price at their next renewal point after 1 July.
- Annual subscribers keep the old price until their current term ends, then renew at the new price.
- Nonprofits follow the commercial rates, with a fixed discount that Microsoft sets.
The first two points follow the summary in Office Watch, a trade site, which matches Microsoft’s wording on renewals. Microsoft says customers get at least 30 days’ notice in the Message Center of the admin portal before packaging changes appear in their tenant. Check the Message Center rather than relying on an email.
Packaging changes at the same time
Microsoft has paired the price rise with changes to what each plan includes. Business Basic, Business Standard and Business Premium gain extra features, including 50 GB of email storage and updates to Copilot Chat. These features roll out during summer 2026. Microsoft’s notice says some features finish rolling out by 1 August 2026.
Sterling prices
Microsoft’s UK comparison page lists Business Basic at £5.40 per user per month on annual billing, excluding VAT. That page carries no date stamp, and I could not find a dated UK table showing the before and after prices in pounds. Use your own invoice or your reseller’s quote to see the exact change.
How to work out your own cost
- Check your billing term, either monthly or annual, and your renewal date in the admin centre.
- Find your current per-user price on your invoice.
- Compare it with the table above, remembering the US dollar figures are list prices.
- Multiply by the number of users. For example, 10 users on Business Standard at $14 come to $140 per month at list price.
- Ask your reseller for a sterling figure that includes VAT, then budget for the renewal date.
If you are comparing plans, note that the gap between Business Standard and Business Premium is now $8 per user per month at list price ($14 against $22). Premium’s price did not change. Whether Premium is worth the extra cost depends on the security and management features your business needs, so compare the feature lists before you switch.
Key points
- Business Basic and Business Standard rose on 1 July 2026. Business Premium did not change.
- Existing customers keep their current price until renewal.
- Monthly and annual subscribers reach the new price at different points.
- Plans gain extra features at the same time, including more email storage.
- UK prices can differ from US dollar list prices, so confirm your sterling figure.
Frequently asked questions
Did my bill go up on 1 July 2026? Not necessarily. Microsoft says existing customers stay on their current price until renewal. The new price applies at your next renewal point.
Is Business Premium more expensive now? No. The list price stayed at $22 per user per month with Teams, and $18.79 without Teams.
Do I have to change plan? Microsoft’s notice describes price and packaging changes, not a requirement to switch plan. Check your own contract and any reseller terms.
Where do I see the change in my admin portal? Look in the Message Center. Microsoft says admins get at least 30 days’ notice before packaging changes appear in a tenant.
Are UK prices going up by the same amount? Microsoft says prices may vary by country and currency. I could not find a dated sterling table showing the before and after figures, so check your invoice or reseller quote.
Information is accurate as of October 2026. Prices can change and vary by currency, so confirm current figures with Microsoft or your IT provider before you make a decision.