Microsoft will raise prices for its Microsoft 365 productivity suites starting July 2026, affecting commercial and government customers around the world. The update comes as the company faces stronger competition from Google’s growing suite of business tools and continues to invest heavily in AI features.
The biggest increases will hit small businesses and frontline workers. Microsoft 365 Business Basic will jump 16.7% to $7 per user each month, while Business Standard will rise 12% to $14. Enterprise plans will see smaller changes, with Microsoft 365 E3 moving to $39 and E5 to $60. Prices for frontline workers will climb the most, with Microsoft 365 F1 rising from $2.25 to $3 and F3 from $8 to $10. Government plans will shift in the same direction, with timing adjusted to local rules.
Microsoft said the new prices reflect more than 1,100 features added to Microsoft 365 in recent years. Many of those updates tie directly to the company’s push into AI, including security upgrades and new productivity tools. The changes also arrive as Microsoft promotes Copilot, its AI assistant, which costs an additional $30 per user each month.
The company last increased commercial Office prices in 2022 and raised consumer subscription rates earlier this year for the first time in more than ten years.
