- Microsoft 365 price increases took effect on July 1, 2026, affecting Business, Enterprise, Frontline, and Government suites.
- Pricing for Microsoft 365 Personal and Education plans remains unchanged.
- Notable price hikes include Business Basic rising 16% to $7/user/month, and Frontline F1 jumping 33% to $3/user/month.
- Enterprise plans see increases of 5-13%, with some like Business Premium and Office 365 E1 staying flat.
- Standalone add-ons like Windows Enterprise per-device licensing also increased by 31%.
- Microsoft justifies the hikes by bundling new AI, security, and management features into the suites.
- New features include Defender for Office 365 Plan 1 for some plans, enhanced URL protection, and Intune tools.
- E5 customers receive Microsoft Security Copilot with specific compute unit allowances.
- Storage increases and Copilot Chat enhancements are included across affected plans.
- Nonprofits, government, and existing renewals see phased or discounted adjustments, with full implementation by August 1, 2026.