On July 1, 2026, Microsoft raises the price of its core commercial Microsoft 365 plans, including the Business plans most small companies run on. The increases are modest, and Microsoft is adding security features to go with them, but the timing creates one decision worth making this week. Here is what is changing and what to do about it.
What is changing
The new list prices take effect July 1. For the plans small businesses actually use, Business Basic goes from $6 to $7 per user per month (about 16%) and Business Standard from $12.50 to $14 (about 12%). Business Premium is staying put at $22. On the enterprise side, E3 rises from $36 to $39 and E5 from $57 to $60, while frontline (F) plans see the steepest jumps, F3 goes from $8 to $10. Standalone Microsoft Teams and Copilot subscriptions are not part of this change.
You are also getting more for it
This is a price rise, but not purely a cash grab: Microsoft is folding extra capability into the suites. The Business plans pick up an extra 50GB of mailbox storage, time-of-click link protection that checks links the moment someone clicks them, and Copilot Chat enhancements. Enterprise plans get more substantial security and management additions (Defender for Office 365 and extra Intune device-management tooling on E3, Security Copilot on E5). Whether that added value is worth the increase depends on whether you will actually use it, which is the real question for any plan.
The one thing to check before July 1
Here is the timing that matters. Existing customers keep their current pricing until their next renewal after July 1, so if your renewal is coming up, renewing before that date can lock today's rates in for the full new term, often a year or more. It is not a reason to panic-renew, but if you were going to commit anyway, doing it before July 1 is simply cheaper. Check when your Microsoft 365 subscription renews, and if it is close, talk to whoever manages your licensing now rather than after the deadline.