Microsoft has announced a global price and packaging update affecting select Microsoft 365 commercial suites. As your IT partner, we want to give you plenty of advance notice so there are no surprises when the change goes into effect, and so you have time to ask us any questions you may have!
Please note: The figures below reflect anticipated pricing based on Microsoft’s current announcement. All pricing is subject to change prior to the July 1, 2026 effective date. We will communicate any further updates as soon as they are confirmed.
Notable Price Changes
The table below outlines the per-user, per-month list price adjustments for the plans most commonly used by our clients. Prices shown are in U.S. dollars.
| Subscription Name | Current Price | New Price (July 1, 2026) |
|---|---|---|
| Microsoft 365 Business Apps | $10.00 / user / mo | $12.00 / user / mo |
| Microsoft 365 Business Basic | $7.20 / user / mo | $8.40 / user / mo |
| Microsoft 365 Business Standard | $15.00 / user / mo | $16.80 / user / mo |
| Microsoft 365 Business Premium | $20.00 / user / mo | No Change |
| Microsoft 365 E3 | $43.20 / user / mo | $46.80 / user / mo |
| Office 365 E3 | $27.60 / user / mo | $31.20 / user / mo |
| Microsoft Entra ID P1 | $7.20 / user / mo | $8.40 / user / mo |
| Microsoft Entra ID P2 | $10.80 / user / mo | $12.00 / user / mo |
Per-user, per-month pricing. Subject to change prior to July 1, 2026.
This is not a comprehensive list, this is simply what we see our customers most often subscribing to.
Business Premium remains unchanged at $20 per user per month, continuing to offer the strongest security and compliance value in the commercial lineup.
What You Are Gaining
A price change is easier to absorb when it comes with tangible improvements, and in this case Microsoft is adding meaningful capabilities across all email-enabled Business accounts. Here is what is included at no additional charge:
- 50 GB additional mailbox storage per user, giving teams significantly more room without managing shared mailboxes or archive policies as aggressively.
- URL protection at time-of-click, which scans links in emails at the moment a user clicks them, catching threats that were not flagged at delivery. This is a meaningful security improvement for everyday email users, and adds an additional layer of protection.
- Copilot Chat enhancements, expanding the AI-assisted features available within the Microsoft 365 suite for eligible plans.
These additions reflect Microsoft’s continued investment in security and productivity at the base subscription level, particularly for small and mid-sized businesses.
What This Means for Your Bill
Your invoice will reflect the updated per-user pricing beginning with your first billing cycle after July 1, 2026. The exact dollar impact depends on how many licensed users you have on each plan. If you would like us to put together a before-and-after cost comparison specific to your account, just reach out!
We know that even modest cost increases require planning, especially when they affect every seat in your organization. Our goal is to give you the information and lead time you need to budget accordingly and make any licensing decisions with confidence before the deadline.
Questions? Contact our team any time. We are glad to walk through your current licensing, discuss whether a different plan tier makes sense, or simply confirm what your updated monthly total will look like after July 1st.
This post is intended for informational purposes. Pricing reflects Microsoft’s announced updates and is subject to change.