Microsoft 365 business price increases took effect July 1, with frontline plans up 25-33%

Microsoft's new list prices for Microsoft 365 commercial and government plans took effect July 1, 2026. Business Basic rose from $6 to $7 per user per month, Business Standard from $12.50 to $14, Microsoft 365 E3 from $36 to $39, and E5 from $57 to $60. Frontline plans saw the largest jumps: F1 went from $2.25 to $3 and F3 from $8 to $10. Business Premium and Office 365 E1 were unchanged. Customers who renewed before July 1 keep their old price until their next renewal date.

Microsoft describes the change as a packaging and pricing update and says it reflects more than 1,100 features added in recent years. Some plans gained real value: Business Basic and Standard picked up extra mailbox storage and Safe Links, and the E3 suites now include Defender for Office 365 Plan 1, which used to be a paid add-on. Copilot for Microsoft 365 is still a separate purchase. For a business with a large frontline or Business Basic population, the per-seat increase is a meaningful line-item change at renewal.

Before your next renewal, pull a current license report and check who is on which plan. Ask your provider whether any users could move to a different tier, whether add-ons you already pay for (such as Defender for Office 365) are now included and can be dropped, and what your renewal date means for when the new price hits. If you are comparing Microsoft 365 with Google Workspace, use the new prices as the baseline.

Nonprofit discounts remain in place, but they now apply to the higher base prices, so nonprofits will also see a dollar increase.