Microsoft 365 price increase starting July 1, 2026
Starting July 1, 2026, Microsoft will raise prices worldwide for virtually all Microsoft 365 Business plans. The increases range from about five to more than 30 percent, depending on the type of license. For many organizations, this feels like quite a blow, especially since Microsoft provides no clear explanation for the price increase.
At Mica IT, we follow these developments closely. In this article you will read what is changing, why Microsoft is taking this step and most importantly what this means for your business. We also give you practical advices so you can anticipate now.
An overview of the announced price increases
Microsoft itself shares only the new dollar prices. The amounts below are converted and based on percentage increases, as analyzed by Tweakers and other sources.
What will change as of July 1, 2026
| Subscription | Current price | New price (estimated) | Increase |
|---|---|---|---|
| Business Basic | €5,60 | €6,53 | 16.7 percent |
| Business Standard | €11,70 | €13,10 | 12 percent |
| Business Premium | €20,60 | €20,60 | 0 percent |
| Office 365 E1 | €9,40 | €9,40 | 0 percent |
| Office 365 E3 | €25,10 | €28,37 | 13 percent |
| Microsoft 365 E3 | €37,70 | €40,84 | 8.3 percent |
| Microsoft 365 E5 | €59,70 | €62,84 | 5.3 percent |
| Microsoft 365 F1 | €2,10 | €2,80 | 33.3 percent |
| Microsoft 365 F3 | €7,50 | €9,38 | 25 percent |
Notice. These are expected euro prices. Microsoft may adjust these later.
Why is Microsoft raising prices
Officially, Microsoft gives no reason. What is clear is that Microsoft is investing billions in AI, security and management functionalities within the Microsoft 365 ecosystem since 2023. Think:
- Microsoft 365 Copilot Chat in an increasing number of subscriptions
- Additional security via Microsoft Defender
- New endpoint management features in Business Premium and others
- Fifty gigabytes of additional mail storage for Business subscriptions
Microsoft is positioning the whole thing as an enhanced total package. These additional features will automatically become part of many licenses in 2026. In other words. Microsoft is already charging ahead with the innovations.
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The most notable outliers
Business Premium remains the same
That Business Premium not rises is extraordinary. Indeed, this is the package that Microsoft itself is increasingly actively pushing forward as the future of SMBs. The full Microsoft security stack, Intune management, AVD options and Copilot support are all in here. This is probably exactly what makes Business Premium relatively attractive compared to the other packages.
Biggest increase at F1 and F3
Frontline licenses are going up the hardest. This target group will soon have access to Copilot Chat and additional management features. This is relevant to manufacturing, logistics and retail organizations, but the price increases are hefty.
Enterprise licenses become noticeably more expensive
In particular, Office 365 E3 is up thirteen percent. Many companies that have not yet switched to Microsoft 365 E3 or E5 will move more quickly to the newer suites as a result.
What does this mean for your IT budget
For many organizations, this move will cause a structural increase in annual licensing costs. Especially for companies with fifty to five hundred workstations, this can be significant.
The good news. With proper analysis and informed choices, you can avoid unnecessary cost increases.
At Mica IT, we often see that companies in practice:
- using the wrong licenses
- Having too many licenses active
- Paying for old subscriptions that should have been replaced long ago
- Have suboptimal combinations of security, management and backup
- have no control over growth or inactivity in their tenant
With a license scan and tenant optimization, companies structurally save between fifteen and thirty-five percent without losing any functionality.
Why Mica IT can help you with this
Every day, we manage hundreds of Microsoft 365 tenants for small and medium-sized businesses in the region. With our Modern Workplace, Intune Whether it's implementations, Azure Virtual Desktop configurations, or Managed Support, we know exactly which licenses are right for each IT strategy.
Our approach.
- We analyze your current licenses and actual usage
- We compare your situation with the new 2026 pricing structure
- We recommend an optimal license combination
- We implement everything neatly and securely in your tenant
- We make sure your environment remains future-proof, including Copilot adoption and security
This not only prevents higher costs, but actually gets more out of your Microsoft environment.
What can you do right now
- Get your licenses vetted by us A quick analysis gives you instant insight into risks, opportunities and savings.
- Consider switching to Business Premium This package remains the same in price and includes many of the features that Microsoft will charge more for with other bundles.
- Look critically at unused accounts One of the biggest costs in SMEs is licenses that continue to run while employees have long since left.
- See the opportunities of Copilot Copilot is becoming an increasingly important part of Microsoft 365. A smart adoption plan prevents you from paying for AI that no one uses.
Advice needed. We are ready
Do you want to know what this price increase means for your organization? We will gladly take a look at your Microsoft environment without any obligation and calculate exactly what the impact is and what optimizations are possible.
Avoid unnecessary cost increases in 2026 with a customized license scan
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