Microsoft has announced that as of July 1, 2026, they are increasing pricing for many of their most popular Office 365 products. They stated in their announcement blog post that they are pushing out “expanded availability of AI, security, and management capabilities coming to Microsoft 365 offerings in 2026” and with that comes from price increases.
First off, here are some of the additional features coming this year (and you can dig into Microsoft’s announcement to dig into it further):
But here’s what you’re really looking for – what to expect come July in the way of price increases:
- Microsoft 365 E3: $43.20 ⇾ $46.80
- Microsoft 365 E5: $68.40 ⇾ $72.00
- Microsoft Office 365 Enterprise E3: $27.60 ⇾ $31.20
- Microsoft Office 365 Enterprise E5: $45.60 ⇾ $49.20
- Microsoft Business Basic: $7.20 ⇾ $8.40
- Microsoft Business Standard: $15 ⇾ $16.80
- Microsoft Apps for Business: $9.90 ⇾ $12.00
- Enterprise Mobility + Security E3: $12.72 ⇾ $14.40
- Entra P1: $7.20 ⇾ $8.40
- Entra P2: $10.80 ⇾ $12.00
A few key points here:
- These are just some of the price increases that would be most relevant and most common to our customers. It is not a complete list.
- This is month-to-month pricing. Discounts are available if you commit to longer terms and pre-payments. However, those have inflexible minimums and cancellation policies, which is why we recommend month-to-month options.
- Similar pricing increases have been announced for Government/GCC licenses and non profit licenses are expected to increase a similar percentage as well as it is tied to commercial rates through a fixed percentage discount, per Microsoft. So expect similar percentage increases this summer as well.
- Once nice thing about this is that Microsoft Business Premium (our preferred user license for most of our clients) will not be increased at this time.
If you have any questions about Office 365 in your environment or want to migrate to Microsoft’s suite of solutions? Give us a call.