Microsoft 365 prices rise on 1 July — what's going up and what isn't
Microsoft's new pricing lands on 1 July. Most business plans go up, a couple hold flat, and existing subscriptions change at renewal. Here's the plain version.
Microsoft's pricing update for Microsoft 365 takes effect on 1 July 2026. It was announced back in December and covers most of the business and enterprise plans. If you run Microsoft 365, the change won't hit your bill the moment the calendar turns, but it will land at your next renewal, so it's worth knowing what's moving before it does.
What's going up
In Microsoft's published figures, the everyday small-business plans see the clearest rises. Microsoft 365 Business Basic goes up by around 16% and Business Standard by around 12%. The enterprise plans move too, with the Office 365 and Microsoft 365 E3 and E5 suites rising by single-digit to low-double-digit percentages, and the frontline worker plans seeing the largest jumps in percentage terms. The increases reflect AI features now built into the suites rather than sold separately.
What's holding flat
Not everything goes up. Microsoft 365 Business Premium, the plan many security-conscious smaller firms sit on for its extra protection, holds at its current price. Office 365 E1 also stays put. If you're on Business Premium, the headline price news doesn't change your renewal, though a licence review is still worthwhile.
When it actually hits you
Existing customers stay on current pricing until their renewal, and Microsoft gives at least 30 days' notice of the change through the admin centre. So the practical trigger is your renewal date, not 1 July itself. That gives most businesses a window to review what they're paying for before the new rate applies.
What to do before your renewal
Two things. First, check the licences you actually hold against who actually uses what. It's common to pay for plans nobody needs, or to have people on a heavier plan than their job calls for. Second, if Copilot and the AI features are part of why the price moved, decide where they earn their place. They pay back for people who spend the day writing, summarising and searching, and far less for hands-on roles.
What this means for your business
Before your next Microsoft 365 renewal, it's worth a quick review so the new pricing doesn't catch you out, and a straight look at whether you're on the right plans for how your team actually works. We'll tell you which licences make sense, trim what you don't need, and get your data and permissions in order first if you're rolling out Copilot.
#WEARECOBALT
Ready when you are.
Tell us what's slowing your business down. We'll tell you exactly how we'd fix it — plainly, with no obligation.