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SMB tech graphic for the Microsoft 365 July 2026 price increase

Here’s one for the budget. Microsoft is lifting the price of its Microsoft 365 commercial plans from 1 July 2026 — the first broad increase to these subscriptions in years, and it lands squarely on the plans most small and mid-sized businesses run. According to Microsoft’s own licensing notice, Business Basic goes up about 16% (from US$6 to US$7 per user per month) and Business Standard about 12% (US$12.50 to US$14). Business Premium holds at US$22. At the top end, Office 365 E3 rises 13% and Microsoft 365 E5 around 5%, while Frontline F3 jumps 25%.

Prices are quoted in US dollars and the local figure moves with the exchange rate, but the direction is clear. Microsoft is bundling extra value in to justify it — Business subscriptions pick up an additional 50GB of mailbox storage, time-of-click link protection, and Copilot Chat features. The catch is you pay the new rate whether or not you use the new bits.

The timing is the bit to watch. New pricing applies to new and renewing customers from 1 July, but existing customers don’t jump straight away — you move to the new rate at your next renewal after 1 July. So if your anniversary is close and you’ve been weighing up a longer-term commitment, locking in beforehand could save real money. Not-for-profits face the same percentage rises, though off a heavily discounted base.

What to do before you renew: pull a list of every licence you’re paying for and check who’s actually using them. Most businesses are quietly paying for seats that walked out the door months ago. Right-size first, then renew. If you’d like a hand auditing your tenant and trimming the waste before 1 July, our Microsoft 365 team can run the numbers with you.

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Posted in Strategic