Microsoft 365 Pricing Update: What to Expect Beginning July 2026
Microsoft has announced upcoming pricing adjustments across its Microsoft 365 and Office 365 licensing portfolio, with changes taking effect on July 1, 2026.
Microsoft Licensing Price Changes Effective July 1, 2026
As organizations continue investing in productivity, security, and AI-powered capabilities, Microsoft is adjusting pricing across several licensing categories. While not every plan is affected, many organizations will experience increases at their next renewal.
Understanding the Impact
The percentages below represent estimated average increases. Actual pricing may vary depending on your licensing agreement and billing structure, including:
• Month-to-month subscriptions paid monthly
• Annual commitments billed monthly
• Annual commitments paid annually
You can add this section after the pricing explanation:
Important Note
Please note that the subscriptions shown below are not a complete list of all Microsoft 365 and Office 365 licensing options. Pricing changes for other plans, add-ons, and services may also apply depending on your organization’s licensing agreement.
Estimated Average Price Adjustments
Enterprise Plans
| License | Estimated Change |
|---|---|
| Office 365 E1 | 0% |
| Office 365 E3 | +15% |
| Office 365 E5 | +10% |
| Microsoft 365 E3 | +10% |
| Microsoft 365 E5 | +5% |
Business (SMB) Plans
| License | Estimated Change |
|---|---|
| Microsoft 365 Business Basic | +20% |
| Microsoft 365 Business Standard | +15% |
| Microsoft 365 Business Premium | 0% |
Frontline (F-Series) Plans
| License | Estimated Change |
|---|---|
| Microsoft 365 F1 | +35% |
| Microsoft 365 F3 | +30% |
Plans Without Microsoft Teams
| License | Estimated Change |
|---|---|
| Office 365 E3 (No Teams) | +15% |
| Office 365 E5 (No Teams) | +10% |
| Microsoft 365 E3 (No Teams) | +12% |
| Microsoft 365 E5 (No Teams) | +7% |
Common Add-Ons and Security Components
| License | Estimated Change |
|---|---|
| Microsoft 365 Apps | +20% |
| Apps for Business | +20% |
| Entra ID P1 | +20% |
| Entra ID P2 | +12% |
| EMS E3 | +15% |
| EMS E5 | +10% |
| Windows Enterprise E3 | +15% |
Highest Impacted Licenses
| License | Increase |
|---|---|
| Microsoft 365 F1 | +35% |
| Microsoft 365 F3 | +30% |
| Microsoft 365 Business Basic | +20% |
| Microsoft 365 Apps | +20% |
| Apps for Business | +20% |
| Entra ID P1 | +20% |
What This Means for Your Organization
These pricing changes will apply at your next renewal occurring on or after July 1, 2026. The overall impact will depend on:
• Your licensing mix
• Subscription quantities
• Billing structure
• Renewal timing
Now is the ideal time to review your Microsoft licensing strategy to maximize value, eliminate unused licenses, and budget appropriately for upcoming renewals.
How Southridge Technology Can Help
Southridge Technology works closely with organizations to optimize Microsoft licensing, control costs, and align technology investments with business goals.
Our team can help you:
• Review your current Microsoft licensing environment
• Identify opportunities for cost savings
• Evaluate subscription and billing options
• Prepare for upcoming renewals
• Forecast future licensing expenses
If you’d like a personalized assessment of your Microsoft licensing environment, contact Southridge Technology today.
Important Note
Please note that the subscriptions shown are not a complete list of all Microsoft 365 and Office 365 licensing options. Pricing changes for other plans, add-ons, and services may also apply depending on your organization’s licensing agreement.
