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Microsoft 365's July 2026 Price Increase, Explained

Microsoft 365 price increase 2026: Business Basic rose from $6 to $7/user/month, Business Standard rose from $12.50 to $14/user/month, and Business Premium held at $22/user/month.

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The short answer

The Microsoft 365 price increase 2026 raised rates on two of its most common small-business 365 plans on July 1, 2026. Business Basic went from $6 to $7 per user per month — a 17% increase. Business Standard went from $12.50 to $14 per user per month — a 12% increase. Business Premium was not changed and remains $22 per user per month.

These are list prices on Microsoft’s standard monthly-billed plans; teams on an annual commitment lock in whatever rate was in effect at renewal, so the Microsoft 365 price increase 2026 timing matters for anyone renewing near July 1. A 10-seat team on Business Basic now pays an extra $120 a year from this single change alone, and a 25-seat team on Business Standard pays roughly $450 more annually.

Liberation Hub For Teams was built as a direct response to increases like this Microsoft 365 price increase 2026 — one flat per-seat rate, published up front, with no separate per-app fees layered on top of email, chat, video and file storage. If the Microsoft 365 price increase 2026 is the reason you’re comparing options, the goal here is simple: show exactly what changed, and what a flat-rate alternative actually costs by comparison.

With the Microsoft 365 price increase 2026 now in effect, Liberation Email is $1.95 per user per month for HIPAA-capable, encrypted business email, with no annual contract. Even against the pre-increase Business Basic price, it’s a fraction of the cost — and it doesn’t move on Microsoft’s renewal schedule.

What changed, plan by plan

Business Basic

$6.00 → $7.00/user/month (+17%), effective July 1, 2026.

Business Standard

$12.50 → $14.00/user/month (+12%), effective July 1, 2026.

Business Premium

No change — stays at $22.00/user/month.

Figures reflect Microsoft’s published annual-commitment pricing from its official 2026 pricing update, effective with the July 2026 change. If your team is on monthly billing or an older legacy SKU, the impact of this Microsoft 365 price increase may differ from the annual-commitment figures shown above.Microsoft 365 price increase 2026: per-user monthly cost before and after July 2026

Beyond email

If your team also leans on Teams, SharePoint, or shared drives, Hub for Teams covers that ground at $7.49/user/month — still less than the new Business Standard price alone.

Who this affects most

Basic-plan teams

The 17% jump on Business Basic is the steepest increase of the three plans — the plan most small teams are actually on.

Growing teams

Per-seat increases compound fastest for teams that are hiring; a 10-person increase to Business Basic alone is $120/year, before growth.

Annual-contract renewals

Teams locked into an annual Microsoft agreement will see the new price at their next renewal, not immediately.

Priced the way a business buys

Per-mailbox pricing, billed monthly, with a written quote for larger rollouts.

What It Costs

Starting prices, billed monthly unless noted. Anything larger gets a written quote.

Common questions

July 1, 2026, for Business Basic and Business Standard. Business Premium was unchanged.

We can’t speak for Microsoft’s future pricing; this page reflects the July 2026 change as published.

Yes — many teams migrate ahead of their Microsoft renewal date to avoid paying the new price even once. We can time the switch around your renewal.

No. Plans are month-to-month and you can cancel anytime.

Time your switch before your renewal

Book a call and we’ll map the migration to your Microsoft renewal date so you never pay the new price.

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