Microsoft 365 Commercial is Getting More Expensive in 2026

At Ignite 2025, Microsoft announced that it was giving Microsoft 365 commercial customers new AI capabilities as part of existing subscriptions and without requiring add-on Microsoft 365 Copilot subscriptions. Today, however, we learned that these customers will soon be paying more each month for that new functionality: In July 2026, Microsoft will raise the price of most Microsoft 365 commercial subscription tiers.

“We’re enhancing our Microsoft 365 offerings with additional security and management capabilities empowered by AI,” Microsoft corporate vice president Nicole Herskowitz writes in the announcement post, focusing on the positive. “We are continuously investing and innovating our platform for the future. In the last year, we released more than 1,100 features across Microsoft 365, Security, Copilot, and SharePoint.”

And now you’re going to pay for them all: Prices are going up as much as 33 percent per user per month, depending on the subscription. Here’s the breakdown:

• Microsoft 365 Basic. Currently $6 per user per month, moving to $7 per user per month.
• Microsoft 365 Standard. Currently $12.50 per user per month, moving to $14 per user per month.
• Microsoft 365 Premium. Currently $22 per user per month, will remain at $22 per user per month.
• Office 365 E1. Currently $10 per user per month, will remain at $10 per user per month.
• Office 365 E3. Currently $23 per user per month, moving to $26 per user per month.
• Microsoft 365 E3. Currently $36 per user per month, moving to $39 per user per month.
• Microsoft 365 E5. Currently $57 per user per month, moving to $60 per user per month.
• Microsoft 365 F1. Currently $6 per user per month, moving to $7 per user per month.
• Microsoft 365 F3. Currently $8 per user per month, moving to $10 per user per month.

Note that these prices are for the subscriptions that include Microsoft Teams. No worries. The versions without Teams are getting “an equivalent dollar value increase,” Microsoft says.