Effective July 1, 2026, Microsoft will adjust the prices for numerous Microsoft 365 plans and add new features to several suites. This affects Enterprise, Business, Frontline, and select standalone components. Now is the right time to review your renewals and licensing strategy.
Our strong recommendation
On the renewal date of your subscription, you should definitely check whether features you previously purchased as part of a subscription are now included in your preferred M365 plan.
Specific Changes to Plans and Individual Subscriptions
In addition to price changes, Microsoft is expanding several plans to include additional features. The rollout will begin in June 2026. According to Microsoft, customers will receive at least 30 days’ advance notice via the Message Center. The rollout of the key new features is scheduled to be completed by August 1, 2026, at the latest.
Enterprise
Office 365 E1
Newly included:
- URL time-of-click protection
- Copilot Chat enhancements
- Copilot Chat Analytics
Office 365 E3
Newly included:
- Microsoft Defender for Office 365 Plan 1
- Copilot Chat enhancements
- Copilot Chat Analytics
Office 365 E5
Newly included:
- Copilot Chat enhancements
- Copilot Chat Analytics
Microsoft 365 E3
Newly included:
- Microsoft Defender for Office 365 Plan 1
- Intune Remote Help
- Intune Advanced Analytics
- Intune Plan 2
- Copilot Chat enhancements
- Copilot Chat Analytics
Microsoft 365 E5
In addition to the E3 enhancements, the following are now included:
- Microsoft Security Copilot
- Intune Endpoint Privilege Management
- Microsoft Cloud PKI
- Intune Enterprise Application Management
Frontline
Microsoft 365 F1 and F3
Newly included:
- Copilot Chat enhancements
- Copilot Chat Analytics
Business
Microsoft 365 Business Basic
Newly included:
- +50 GB of email
- URL time-of-click protection
- Copilot Chat enhancements
- Copilot Chat Analytics
Microsoft 365 Business Standard
Newly included:
- +50 GB of email
- URL time-of-click protection
- Copilot Chat enhancements
- Copilot Chat Analytics
Microsoft 365 Business Premium
Newly included:
- +50 GB of email storage
- Copilot Chat enhancements
- Copilot Chat Analytics
Standalone
Windows E3
Newly included:
- Quick Machine Recovery (QMR) for commercial
- post-quantum security APIs
EMS E3
Newly included:
- Intune Remote Help
- Intune Advanced Analytics
- Intune Plan 2
Windows Enterprise (per device)
Newly included:
- Basic resilience features
- Software Assurance
Overview of Price Adjustments
The following prices are based on the commercial list prices in USD published by Microsoft and were released in February 2026. Local prices may vary depending on the country, currency, and rounding.
| SKU | Old Price | Percentage Increase | New Price |
|---|
| Commercial Subscriptions |
|---|
| Office 365 E1 |
– |
– |
$10.00 |
| Office 365 E3 |
$23.00 |
13% |
$26.00 |
| Office 365 E5 |
$38.00 |
8% |
$41.00 |
| Microsoft 365 E3 |
$36.00 |
8% |
$39.00 |
| Microsoft 365 E5 |
$57.00 |
5% |
$60.00 |
| Office 365 E1 (no Teams) |
– |
– |
$6.79 |
| Office 365 E3 (no Teams) |
$14.45 |
14% |
$17.45 |
| Office 365 E5 (no Teams) |
$29.45 |
10% |
$32.45 |
| Microsoft 365 E3 (no Teams) |
$27.45 |
11% |
$30.45 |
| Microsoft 365 E5 (no Teams) |
$48.45 |
6% |
$51.45 |
| Microsoft 365 F1 |
$2.25 |
33% |
$3.00 |
| Microsoft 365 F3 |
$8.00 |
25% |
$10.00 |
| Microsoft 365 F1 (no Teams) |
$1.75 |
43% |
$2.50 |
| Microsoft 365 F3 (no Teams) |
$6.93 |
29% |
$8.93 |
| Microsoft 365 Business Basic |
$6.00 |
16% |
$7.00 |
| Microsoft 365 Business Standard |
$12.50 |
12% |
$14.00 |
| Microsoft 365 Business Premium |
– |
– |
$22.00 |
| Microsoft 365 Business Basic (no Teams) |
$4.40 |
23% |
$5.40 |
| Microsoft 365 Business Standard (no Teams) |
$9.29 |
16% |
$10.79 |
| Microsoft 365 Business Premium (no Teams) |
– |
– |
$18.79 |
| Purview Suite |
– |
– |
$12.00 |
| Windows E3 |
$6.63 |
15% |
$7.63 |
| Apps for Business |
$8.25 |
21% |
$10.00 |
| Enterprise Mobility + Security (EMS) E3 |
$10.60 |
13% |
$12.00 |
| Entra Plan 1 |
$6.00 |
16% |
$7.00 |
| Windows Enterprise (per device) |
$5.85 |
31% |
$7.63 |
| Defender Suite |
– |
– |
$12.00 |
| Windows E5 |
$11.81 |
9% |
$12.81 |
| Microsoft 365 Apps |
$12.00 |
17% |
$14.00 |
| Enterprise Mobility + Security (EMS) E5 |
$16.40 |
10% |
$18.00 |
| Entra Plan 2 |
$9.00 |
11% |
$10.00 |
| Microsoft 365 Apps (per device) |
$36.00 |
17% |
$42.00 |
| Nonprofit Subscriptions |
|---|
| Office 365 E1 |
– |
– |
$2.50 |
| Office 365 E3 |
$5.75 |
13% |
$6.50 |
| Office 365 E5 |
$15.20 |
8% |
$16.40 |
| Microsoft 365 E3 |
$9.00 |
8% |
$9.75 |
| Microsoft 365 E5 |
$22.80 |
5% |
$24.00 |
| Microsoft 365 F1 |
$0.56 |
33% |
$0.75 |
| Microsoft 365 F3 |
$2.00 |
25% |
$2.50 |
| Microsoft 365 Business Basic |
Free |
N/A |
Free |
| Microsoft 365 Business Standard |
$3.00 |
17% |
$3.50 |
| Microsoft 365 Business Premium |
– |
– |
$5.50 |
| Purview Suite |
– |
– |
$4.80 |
| Windows E3 |
$1.65 |
15% |
$1.90 |
| Enterprise Mobility + Security (EMS) E3 |
$2.65 |
13% |
$3.00 |
| Entra Plan 1 |
$1.50 |
16% |
$1.75 |
| Microsoft 365 Apps |
$3.00 |
17% |
$3.50 |
| Microsoft 365 Apps (per device) |
$9.00 |
17% |
$10.50 |
| Defender Suite |
– |
– |
$4.80 |
| Windows E5 |
$4.40 |
9% |
$5.12 |
| Enterprise Mobility + Security (EMS) E5 |
$6.56 |
10% |
$7.20 |
| Entra Plan 2 |
$3.60 |
11% |
$4.00 |
| Windows Enterprise (per device) |
$1.46 |
31% |
$1.91 |
| Government Subscriptions |
|---|
| Microsoft 365 G3 GCC |
– |
8% |
– |
| Microsoft 365 G3 GCC High |
– |
8% |
– |
| Microsoft 365 G3 DoD |
– |
8% |
– |
| Microsoft 365 G5 GCC |
– |
5% |
– |
| Microsoft 365 G5 GCC High |
– |
5% |
– |
| Microsoft 365 G5 DoD |
– |
5% |
– |
| Office 365 G1 GCC |
– |
– |
– |
| Office 365 E1 GCC High |
– |
– |
– |
| Office 365 E1 DoD |
– |
– |
– |
| Office 365 G3 GCC |
– |
13%* |
– |
| Office 365 E3 GCC High |
– |
13%* |
– |
| Office 365 E3 DoD |
– |
13%* |
– |
| Office 365 G5 GCC |
– |
8%* |
– |
| Office 365 E5 GCC High |
– |
8%* |
– |
| Office 365 E5 DoD |
– |
8%* |
– |
| Business Premium GCC High |
– |
– |
– |
| Microsoft 365 F1 |
– |
33%* |
– |
| Microsoft 365 F3 |
– |
25%* |
– |
Note: On its Government page, Microsoft sometimes publishes only the percentage increase, but not the old or new prices. According to Microsoft, government price increases marked with an * may be phased in over several years.
What These Changes Mean for Businesses
The adjustments in July 2026 are not just a typical price increase. Microsoft clearly links the new prices to additional security, management, and productivity features.
For businesses, this means specifically:
- License inventories should be reviewed now
- Renewal dates should be known
- Unused or duplicate features should be identified
- Existing plans should be compared against actual needs
Especially for Microsoft 365 E3/E5, Business Standard/Premium, as well as EMS and Entra components, it may be worthwhile to reassess your current licensing strategy.
Our Conclusion
Microsoft will significantly increase prices for numerous Microsoft 365 plans effective July 1, 2026. At the same time, Microsoft is expanding several suites with additional features—particularly in the areas of security, Intune, Copilot Chat, and analytics. Anyone who wants to avoid additional costs and assess the actual value of the new features should act now.
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