Microsoft has announced that it will increase the prices of its Microsoft 365 and Office commercial subscriptions worldwide starting July 1, 2026. The company said the changes are being made to reflect the significant number of new features added to its productivity tools over the past several years, including stronger security protection and the growing use of artificial intelligence in everyday work. Microsoft explained that many organisations today face higher IT demands, more complex cyber threats, and increasing pressure to move toward AI-supported workflows. Because of this, the company said it has been investing in improvements across Microsoft 365, and the upcoming price adjustments will help support continued development. The update also comes as competition with Google’s productivity offerings grows.
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Microsoft 365 Business Basic will rise by 16.7% to $7 per user per month, while Business Standard will rise by 12 percent to 14 dollars. Enterprise plans will experience smaller increases. Microsoft 365 E3 will rise 8.3% to $39 per user per month, and Microsoft 365 E5 will increase 5.3% to $60. Frontline worker plans will see the sharpest jumps. Microsoft 365 F1 will rise from $2.25 to $3, while the F3 plan will move from $8 to $10. Government plans will rise at similar rates, with timing based on local regulations.
Microsoft said it has added more than 1,100 new features across Microsoft 365 since its last major commercial price adjustment in 2022. Some key additions include Copilot Chat in Word, Excel, PowerPoint, Outlook, and OneNote. This feature is designed to help users write and edit documents more easily and manage email more efficiently. The company has also added new security protections such as stronger phishing and malware detection and improved website link checks.
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Device management has also been upgraded through Microsoft Intune, which now includes tools like Remote Help, Endpoint Privilege Management, and Advanced Analytics. Security Copilot agents are being integrated into several Microsoft products to help organisations protect data and manage risks more effectively.
Microsoft is set to raise nonprofit and commercial Microsoft 365 prices in 2026, with suites purchased without Teams also increasing by the same percentage. The pricing changes will affect Microsoft 365’s core applications, including Word, Excel, PowerPoint, Outlook, and OneNote, across businesses, public sector agencies, and government clients. Microsoft noted that small business and frontline worker plans are expected to see the largest increases.