Your Microsoft 365 Bill Goes Up July 1, 2026: What’s Changing and What to Do First
Microsoft 365 prices rise July 1, 2026. See new plan costs, what stays the same, and what Northeast Ohio businesses should do before renewal.
· Last updated
From our archive: Originally published June 30, 2026, before the July 1 price change. Prices and plan details may have changed since.
Microsoft raises commercial prices on most Microsoft 365 plans on July 1, 2026. Business Basic moves from $6 to $7 per user per month. Business Standard goes from $12.50 to $14. Business Premium stays at $22. If you run a small business in Northeast Ohio, your monthly bill is about to shift, and the timing of your renewal decides when it hits you.
That last part matters more than the numbers. Existing customers keep their current per-user pricing until their next renewal after July 1. So this is not a panic. It is a planning window, and you still have time to use it.
When does the Microsoft 365 price increase actually affect you?
Your current pricing holds until your first renewal after July 1, 2026. The increase applies at that renewal, not automatically on July 1. That means your renewal date is your real deadline. Find it before you assume your bill changes overnight.
What’s actually changing on July 1, 2026
Here is the plain-English version. These are the price changes to the plans most local businesses already use, confirmed on Microsoft’s own licensing page. Here is what each plan costs before and after July 1, 2026.
Scroll the table to compare every column.
| Plan | Old price (per user/mo) | New price (per user/mo) | Change |
|---|---|---|---|
| Business Basic | $6.00 | $7.00 | +$1.00 |
| Business Standard | $12.50 | $14.00 | +$1.50 |
| Business Premium | $22.00 | $22.00 | No change |
| Microsoft 365 E3 | $36.00 | $39.00 | +$3.00 |
| Microsoft 365 E5 | $57.00 | $60.00 | +$3.00 |
A few things stand out. Business Premium holds at $22, so if that is your plan, your per-user price is steady. Basic and Standard, the two plans most small offices run, both go up. And the enterprise E3 and E5 plans rise by $3 each.
Microsoft says the increase comes with added capabilities folded into these plans over the summer, including more email storage, expanded security features, and tighter protection against malicious links. So you are paying more, but you are also getting more in the box. Whether you need all of it is a separate question worth asking.
Read this separately · new products, not price changes
Are the new Microsoft 365 Copilot plans a price increase?
No. This part trips people up, so let’s keep it clean and separate from the table above.
Alongside the price changes, Microsoft is launching brand-new, separate products that bundle its Copilot AI assistant. There is a Business Standard with Copilot plan around $23.50 per user, a Business Premium with Copilot plan around $32 per user, and a larger E7 “Frontier” suite at roughly $99 per user.
These are not price increases to your current plan. They are new, optional plans you would have to choose to move to. Your existing Business Premium is still $22. The $32 figure is a different product with AI added. Do not let the two get mixed together when you read about this elsewhere.
What this means for your monthly bill
Run the math on your own numbers, because the headline percentages do not tell you what you actually pay. A 10-person office on Business Standard goes from $125 a month to $140 a month, or $180 more a year. A 25-person office on Business Basic goes from $150 to $175 a month, about $300 more a year.
None of that is going to break a business. But it is real money, and it is the kind of recurring cost that quietly grows when nobody is watching the license list. When we onboard new clients, we often find seats nobody’s using. The price increase is a good reason to finally clean that up.
How Cyber Shift Technologies helps you handle this
We do a free IT Bill Review for businesses across North Canton, Canton, Akron and the wider Northeast Ohio area. It looks at what you already pay for IT, including your Microsoft 365 licenses, phones and internet, and we’ll tell you in plain terms whether your plan fits and whether an annual term before your renewal is worth a look.
That is the part most owners do not have time to chase. You get a bill, it goes up a little, and the calendar moves on. We’ve served 235+ businesses since 2016. Our North Canton team can help you review your subscriptions and licensing. Support is available 24/7/365, including outside office hours. The point is not to sell you a bigger plan. It is to make sure you are paying for what you use and nothing else, before the new pricing locks in at your next renewal.
What to do before July 1
You have a short window. Here is the practical checklist.
- Find your renewal date. Your current pricing holds until your first renewal after July 1, 2026. Know when that is. It decides your real deadline.
- Count your actual users. Pull your seat count and compare it to your headcount. Pay for people who are here, not people who left.
- Check whether your plan fits. A 12-person professional services office does not need the same plan as a 200-seat enterprise. Make sure you are not over-licensed.
- Decide on an annual Microsoft term. Committing to an annual Microsoft 365 term before renewal can lock in Microsoft’s pricing and avoid month-to-month rate exposure. Weigh it against your cash flow. This is your Microsoft license term, separate from any agreement with your IT provider.
- Skip the Copilot upsell unless you have a reason. The new AI plans are optional. Add them when you have a clear use for them, not because they showed up in a menu.
- Ask for help if the licensing fog is real. This is exactly the kind of thing an IT partner should handle for you.
Frequently asked questions
How much is Microsoft 365 going up on July 1, 2026?
It depends on your plan. Business Basic rises from $6 to $7 per user per month and Business Standard from $12.50 to $14. Microsoft 365 E3 and E5 each rise by $3. Business Premium does not change and stays at $22 per user per month.
Does the Microsoft 365 price increase hit me on July 1, 2026?
Not necessarily. Existing customers keep their current per-user pricing until their first renewal after July 1, 2026. The increase applies when you renew, so your renewal date is your real deadline. Check it before assuming anything changes on July 1.
Is Microsoft 365 Business Premium going up to $32 with Copilot?
No. Your existing Business Premium plan stays at $22 per user per month. The $32 figure is a separate new “Business Premium with Copilot” product that bundles Microsoft’s AI assistant. It is an optional plan you choose to move to, not a price change to your current plan.
Can I lock in current Microsoft 365 pricing before the increase?
Sometimes. Committing to an annual Microsoft 365 term before your renewal can help hold Microsoft’s pricing and avoid month-to-month exposure. Whether it makes sense depends on your seat count, plan, and renewal date. Our free IT Bill Review looks at what you pay for Microsoft 365 today, along with the rest of your IT bills.
Should my small business pay for the new Copilot plans?
Only if you have a clear use for them. The Copilot-bundled plans are optional and cost more. For many small offices in Northeast Ohio, the AI features are not yet worth the added monthly cost. Decide based on real use, not on an upgrade prompt.
Talk it through before your renewal
If you are not sure what plan you are on or when you renew, that is exactly what we are here for. Ask for a free IT Bill Review for your Northeast Ohio business. Call our North Canton team at 330-353-8420 or email info@cybershift.com, and we will tell you straight whether the price increase costs you anything and what, if anything, to do about it before July 1.