Microsoft raised prices on most of its Microsoft 365 small-business plans on July 1, 2026. If you were already a customer, you probably haven't noticed yet. Existing customers keep their current price until their next renewal, so the increase shows up whenever your renewal date comes around. For many businesses, that will be in the next few months, and nobody in the office will have decided anything.
The change also adds some features, so it's a good moment to make sure you're paying for the right things.
What changed, in plain terms
These are Microsoft's US list prices, per user, per month:
- Business Basic goes from $6.00 to $7.00.
- Business Standard goes from $12.50 to $14.00.
- Business Premium stays at $22.00.
- Apps for Business (the Office apps, without email) goes from $8.25 to $10.00.
Your own price can be different, depending on where and how you buy your licenses, so check your invoice for the exact figures.
Why it matters
Business Premium didn't go up, so the gap between Standard and Premium shrank from $9.50 to $8.00 per user. Premium is the plan that includes Microsoft's stronger security and device-management tools, the kind that help protect accounts and company laptops. For some businesses, it's now a closer call than it used to be.
What you get for the extra money
According to Microsoft, the plans are getting these additions:
- Business Basic and Business Standard: 50GB of extra email storage, link checking at the moment someone clicks a link in an email, and more Copilot Chat features.
- Business Premium: the extra 50GB of email storage and the Copilot Chat additions.
Microsoft began rolling these out in the summer and sends a notice in the Microsoft 365 Message Center at least 30 days before the new features reach your account.
When will your bill change?
At your renewal date. That date may not be the same for every license you own. If you added licenses at different times, or have more than one type of plan, some may renew months apart. Look up when each one renews so the increase doesn't catch you by surprise.
A 10-minute check before you renew
- Pull your license list from the Microsoft 365 admin center, or ask whoever manages your account.
- Remove licenses for people who have left. It's common to find a few still being paid for.
- Confirm each person is on the right plan. Someone who only needs email and the web versions of the Office apps may not need Business Standard.
- Ask whether anyone should move up to Business Premium. With the price gap smaller, it may make sense for people who handle sensitive data or money, or who work on company laptops away from the office.
How we can help
ProIT can review your Microsoft 365 licenses, flag unused or mismatched seats, and tell you whether your current plans still make sense before your renewal date. Contact us or call (480) 382-3289.
Source: Microsoft 365 Pricing and Packaging Updates (Microsoft)