New Microsoft 365 pricing live, some products up by 42% due to AI
windowslatest.com
July 5, 2026
4 min read
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43/100
Summary
Microsoft 365 subscribers will experience a price increase as part of a "packaging and pricing update" effective July 1, 2026. The price hike applies to Business, Enterprise, Frontline, and Government suites, with Microsoft attributing the change to ongoing innovation and the integration of AI features like Copilot.
Key Takeaways
- Microsoft 365 subscription prices increased on July 1, 2026, with some plans seeing hikes of up to 43%.
- Microsoft is bundling new features, such as Microsoft Defender and Intune services, into the updated pricing to justify the increases.
- Microsoft 365 Business Basic now costs $7 per user per month, up from $6, while Business Standard rises from $12.50 to $14.
- Nonprofits and government customers face similar percentage increases in pricing as commercial users.
