Microsoft raised Microsoft 365 pricing across most plans effective July 1, 2026. Here's exactly what moved, by how much, and what's bundled in that wasn't before.
If your Microsoft 365 renewal came in higher than last year with no explanation attached, you're not imagining it. Microsoft raised list pricing across most Business, Enterprise, and Frontline plans effective July 1, 2026. Existing customers keep their current pricing until their next renewal after that date, so for a lot of businesses this hasn't hit yet, which makes it worth understanding before it shows up as a surprise line item.
Frontline worker plans took the biggest jump proportionally, up 25–43% depending on tier (for example, F1 with Teams moved from $2.25 to $3.00 per user/month). A separate Microsoft 365 E7 tier launched May 1, 2026, outside of this pricing update.
Microsoft bundled Defender for Office 365 Plan 1 into E3 (previously an add-on), added Security Copilot capacity to E5, and expanded Copilot Chat and mailbox storage on the Business tiers. Whether that's a good trade depends entirely on whether you were already paying separately for equivalent protection. For some clients this closes a gap for free; for others it's a feature they'll never touch.
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