Major Changes Coming to Microsoft 365 Pricing in 2026
- Read Time: 4 mins.
Microsoft is rolling out new pricing and packaging updates for Microsoft 365. These changes take effect July 1, 2026, and they apply to both new subscriptions and renewals. Every plan tier is affected—from Enterprise and Business to Frontline and key standalone products like EMS, Entra ID and Windows.
Microsoft is adding stronger security, broader IT management and new AI features to every suite. These upgrades now sit inside the suites rather than behind separate add-ons, which will shift how organizations plan for both cost and capability.
Below is a simple breakdown of what is changing, what is being added, how to prepare and how HBS can help.
Why Microsoft 365 Pricing Is Increasing
Microsoft is expanding core capabilities inside Microsoft 365 to help organizations stay secure, productive and ready for AI-driven work. These enhancements include:
- Copilot Chat upgrades across Word, Excel, PowerPoint, Outlook, and OneNote
- New Copilot Chat Analytics
- Defender for Office protection across email and Microsoft Teams
- Intune Remote Help, Advanced Analytics and Intune Plan 2
- Security Copilot availability for Microsoft 365 E5
These additions will arrive throughout 2026 and will apply to all qualifying Microsoft 365 products.
Microsoft 365 Pricing Changes Take Effect July 1, 2026
- New subscriptions use updated pricing right away
- Renewals reflect updated pricing after July 1, 2026
- Monthly and annual terms both change at renewal
- Current promotional pricing stays in place until the agreement ends
Most plans will see increases between five and thirty-three percent.
Microsoft 365 Pricing Changes by Product
Microsoft 365 Changes for Government and Nonprofit Plans
- Government pricing follows the same timeline as commercial plans, with increases above ten percent phased in over multiple years.
- Nonprofit pricing adjusts alongside commercial updates and keeps its existing discount percentage.
- Education changes are still pending.
How HBS Can Help You Navigate the Microsoft 365 Changes
Pricing shifts are only one part of the story. There’s an opportunity here in making sure your licensing strategy supports your security, productivity and budget goals. HBS helps organizations stay ahead with:
Microsoft Licensing Reviews
We sort through your current subscriptions, identify unused licenses, remove overlap and match your needs to the right Microsoft 365 tiers.
Co-Terming for Clarity and Control
We align your Microsoft cloud renewals so everything lands on one timeline. That means fewer surprises, easier budgeting and clean reporting.
Automated Renewal Alerts and Guidance
You get clear reminders ahead of renewals, plus expert recommendations on the best options based on your mix of users, devices and security requirements.
Expert Microsoft Licensing Support
As your CSP partner, HBS handles the heavy lifting. We assist in guiding you through pricing changes, help you map new features to your environment and give you a dedicated point of contact for questions.
Connect with HBS to simplify your Microsoft 365 licensing and prepare for the 2026 pricing updates.
Microsoft 365 Pricing Changes Frequently Asked Questions
What is changing with Microsoft 365 pricing?
Microsoft is updating global pricing for Microsoft 365 and Office 365 starting July 1, 2026. This affects Enterprise, Business, Frontline, Government, and many standalone products.
Which products are affected?
Most commercial suites plus standalone offerings such as EMS, Entra ID, Windows, and Microsoft 365 Apps.
How much are prices increasing?
Most increases range from five to thirty-three percent.
What new features are being added?
Copilot Chat enhancements, analytics, Defender for Office features, more mailbox storage for Business plans and new Intune capabilities for E3 and E5. Security Copilot is also expanding to all Microsoft 365 E5 customers.
How should I explain this to my organization?
Focus on value: stronger security, integrated AI, and broader device management tools that used to require separate subscriptions.
What about government, nonprofit and education plans?
Government increases above ten percent are phased. Nonprofit pricing adjusts with commercial pricing while keeping the discount percentage. Education updates are pending.
What is the impact on renewals?
Renewals before July 1 should include preparation for upcoming changes. Renewals after July 1 reflect the new pricing.
How does HBS support this transition?
We provide licensing reviews, renewal planning, co-terming, guidance on the new features, and ongoing support through your CSP relationship.
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