Microsoft 365 Feature Upgrades And Pricing Changes In 2026
Microsoft announced feature updates along with price increases for several Microsoft 365 licenses/plans. The price increases take effect July 1, 2026. Presumably the features will be added at the same time, though Microsoft merely labeled that as "in 2026."
Pricing Changes Effective July 1
Below we listed the price changes most applicable to our clients. Licenses on an annual renewal will change at the time of the renewal. Keep in mind one can mix and match licenses to maintain flexibility, for example 10 annual and 2 monthly.
| Current price (monthly) |
July 1 (monthly) |
Current price (annual) |
July 1 (annual) |
||
|---|---|---|---|---|---|
| Business Basic | $7.20 | $8.40 | $72 | $84 | |
| Business Standard | $15 | $16.80 | $150 | $168 | |
| Business Premium | $26.40 | no change | $264 | no change | |
| Office 365 E1 | $12 | no change | $120 | no change | |
| Office 365 E3 | $27.60 | $31.20 | $276 | $312 |
Microsoft 365 E and F licenses will increase also. Discounted nonprofit licenses will also increase since, per Microsoft, they are a percentage discount from retail pricing.
New/Upgraded Features
Below is Microsoft's table of added features. Notably Business Basic, Business Standard, and Business Premium will enjoy 100 GB email storage, so larger mailboxes may be able to remove an existing Exchange Online Plan 2 license. Keep in mind these are changes to existing plans so for example the "URL checks" feature already existed in Premium.
In addition to a larger mailbox, Basic, Standard, and Premium's Copilot Chat gains "enhancements," security, management, and analytics features. Basic and Standard gain URL (phishing, malware) detection in Outlook and Office apps.
March 2026
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