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Microsoft will raise commercial and government prices for Microsoft 365 and Office worldwide from July 1, 2026. The changes cover business, enterprise, government, and nonprofit customers that use core apps like Word, Excel, and PowerPoint.
Small business tiers carry the steepest jumps in the new Microsoft 365 price list. Microsoft 365 Business Basic will increase 16.7 percent to $7 a month. Business Standard will climb 12 percent to $14 a month, while Business Premium will also see higher charges.
Frontline worker plans face even sharper Microsoft 365 price increases. Microsoft 365 F1 will move from $2.25 to $3 per user, a 33 percent rise. The F3 plan will go from $8 to $10 per user, a 25 percent increase.
Microsoft links the higher prices to investment in AI and security capabilities since its last commercial price change in 2022. The company says it has added over 1,100 new features across Microsoft 365, Security, Copilot, and SharePoint.
Copilot Chat now runs inside Word, Excel, PowerPoint, Outlook, and OneNote for Microsoft 365 users. Staff can draft, edit, summarize, and organize documents, spreadsheets, and presentations through natural language prompts.
Security and management upgrades also support the higher Microsoft 365 prices. Microsoft Defender for Office Plan 1 capabilities will join Office 365 E3 and Microsoft 365 E3. URL checks will reach Business Basic, Business Standard, and Office 365 E1 to block malicious websites.
Microsoft also plans broader endpoint management tools through Microsoft Intune. New Intune features will help IT teams give remote help, monitor device health, and manage application access. Security Copilot agents will integrate with Microsoft’s security products so teams can investigate threats with AI assistance.
Also Read: How to Get Microsoft 365 Personal With Copilot Free for One Year
Enterprise Microsoft 365 plans will see smaller percentage jumps but higher subscription costs. Microsoft 365 E3 will move from $36 to $39 a month, an 8.3 percent rise. Microsoft 365 E5 will increase from $57 to $60, a 5.3 percent gain. Office 365 E1, E3, and E5 suites will adopt higher list prices from July 2026.
Government suites will follow a similar path, with timing shaped by national procurement and price cap rules. In some public sector markets, Microsoft will phase the increase over more than one year. Nonprofit pricing will track commercial Microsoft 365 rates through fixed percentage discounts.
Microsoft says more than 430 million people now use Microsoft 365 apps worldwide. With the 2026 Microsoft 365 price increase, the company urges organizations to review budgets. It also asks customers to plan for new AI and security tools.
